Europe -  Amsterdam

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In the province of North Holland, and at the heart of the Randstad area, lies Europe’s sixth-largest metropolitan area and the largest city in the Netherlands, Amsterdam, which recorded a population of 1.2 million in 2021. In 2019, Amsterdam Schiphol Airport ranked as the third-largest airport in Europe in terms of total passenger numbers. The Port of Amsterdam handles mostly freight and cruise ships and is the fourth-busiest port in Europe.

Most of Amsterdam’s quality hotels are in the city centre, while the modern office districts are on the ring road, particularly to the south, where the Amsterdam RAI convention centre is located. Many events scheduled in Amsterdam for 2020/21 were cancelled or postponed due to COVID-19 restrictions; in 2020 alone, the number of events at the RAI declined by 76%. Amsterdam’s hotel demand largely stems from leisure clientele (circa 65.0%). The primary source for visitation to Amsterdam pre-pandemic was the domestic market (17.8%), followed by the UK (15.5%) which is connected by Eurostar, the USA (11.1%) and Germany (10.1%); this combination is a robust formula to aid recovery in the post-pandemic world.

Demand from February to April mostly stems from business guests, while leisure demand appears strongly from April to September, pushing occupancy over 80.0% for almost eight months of the year (under normal circumstances). Average rates are strongest in spring and autumn when the corporate and MICE markets are most active. Leisure guests (in summer) typically spend less on hotels. The strongest performance is achieved on Friday and Saturday nights. RevPAR in Amsterdam grew at a compound annual growth rate of 4.0% from 2015 to 2019, driven by a 3.0% CAGR of average rate over the same period and a largely stable occupancy around the 80s mark. Performance in 2020 contracted significantly on the back of the COVID-19 pandemic and the related lockdowns and travel restrictions. In the second quarter of 2021, Amsterdam slowly started to recover, with a stronger performance during the summer months – increasing infection levels and Omicron related restrictions in November and December 2021 led to the market experiencing a steep decline in performance again.

Whilst the current confirmed hotel pipeline for the market stands at around 2,100 rooms, there is still a certain lack of visibility in relation to the status of some of these projects. The onset of the pandemic has caused financial difficulties and delays for a number of projects, and it is even likely that some will be cancelled altogether. We also note that several of the projects sit outside the city centre given the hotel development restrictions imposed by the city in an effort to control tourism flows and address concerns over the constantly rising cost of living. In 2021, there was very little transaction activity in Amsterdam. Three hotels traded hands (the easyHotel Amsterdam City Centre South, the B&B Hotel Zandaam and The Albus) compared to 12 hotel transactions in 2019. In a larger context, Amsterdam ranked 15th in Europe for the number of hotels sold throughout 2021. Overall, our HVI analysis reflects a year-on-year increase of 3.1% in hotel values as at the end of 2021.

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: More than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA

[email protected]
  • +44 20 7878 7722 (w)
Nikola Miljković

[email protected]
  • +44 20 7878-7724 (w)
  • +44 7 593572865 (m)
Mathilde De Bona

[email protected]