Europe -  Amsterdam, Netherlands

Amsterdam is the capital of the Netherlands and the country’s most populous city, with more than a million residents. Most of the city’s quality hotels are in the city centre. The modern office districts are on the ring road, particularly to the south, near the Amsterdam RAI convention centre, one of the city’s main demand generators. This area is expected to continue attracting further investment from a number of key sectors, including computer services, telecommunications, transport logistics, investment banking and insurance. Furthermore, the Zuidas neighbourhood is currently a major development zone, which includes residential and commercial developments, with many multinational companies, the Netherlands’ largest university and a teaching hospital also settling in the area. Furthermore, the European Medicines Agency (EMA), formerly based in London, has recently relocated its headquarters to Amsterdam (in early March 2019) following the UK’s decision to leave the European Union. The EMA’s transition is expected to cause high interest in Amsterdam from businesses specialising in relevant fields such as medicine and life sciences.

As both a commercial and a leisure destination, the city benefits from many different types of demand for hotel accommodation. Therefore, the monthly seasonality is relatively broad across the year; however, owing to the significant influx of leisure tourists, demand spikes on Friday and Saturday nights. The average length of stay was just over 1.9 days in 2017 and the city’s hotels achieved an aggregate occupancy of more than 80% in 2018, one of the highest in Europe. Amsterdam continues to see growth in demand, largely supported by an excellent transportation infrastructure; arrivals in Schiphol airport grew by almost 4% in 2018. Expansion plans are currently underway given the airport is reaching its full capacity, and a new terminal is therefore scheduled to open by the end of 2023. Demand for accommodation in the city has also shown solid growth over the last few years, with RevPAR growing by almost 5% in 2018 driven by strong occupancy and average rate increases.

There are currently more than 3,000 rooms in the pipeline due to enter Amsterdam’s hotel market by 2020. However, these projects are outside the city centre given the hotel development restrictions imposed by the state in an effort to control tourism flows and address the frustrations of locals who have expressed concerns over the constantly rising cost of living. A map with two zones has been established by the government: zone one will see no further hotel development, while zone two will only approve new projects if they add significant value to the area and are in line with the strict development requirements of the respective neighbourhood.

In 2018, hotel transaction levels in Amsterdam were substantial. Key sales included the INK Hotel Amsterdam MGallery by Sofitel for approximately €60 million (€405,000 per room) sold by Principal Real Estate Europe to Amundi and L’Etoile Properties. The Kimpton De Witt Hotel was sold to Global Holdings by York Capital and Cedar Capital Partners for a recorded €160 million (€600,000 per room), and the Sheraton Amsterdam Airport located in Schiphol which was acquired by InterGlobe Enterprise from Blackstone for €130 million (€280,000 per room).

We expect demand and hotel performance to remain strong, and for barriers to entry in the Amsterdam market to remain high. Overall, hotel values in Amsterdam increased by 4.5% in 2018.

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Amsterdam RevPAR Change (€Euro)

Amsterdam RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Magali Castells
[email protected]
  • +44 20 7878-7710 (w)
  • +44 7 850205149 (m)