For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
2023
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2022
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2021
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2020
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2019
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2017
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2001
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 2022. In 2022, Amsterdam Schiphol Airport ranked as the fourth-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. 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% 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.
The current confirmed hotel pipeline for the market stands at around 1,750 rooms and includes the 93-room Citadines Canal Amsterdam expected to open in April 2023 (the former Mercure Canal), the 579-room Maritim Hotel Amsterdam (January 2024), the 134-room Rosewood Amsterdam (January 2024) and the 120-room Wilde Amsterdam (May 2024). We 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 2022, there was a pick-up in activity for transactions in Amsterdam compared to 2021. Ten hotels traded hands, including the 93-room Mercure Amsterdam that sold in January for a reported €48 million to Ascott (and will reopen as a Citadines), the 288-room QO Amsterdam that was sold in May for €92 million, the 178-room Sofitel that transacted in September for €150 million and the 111-room Hoxton transacting in December for a reported €60 million as part of a two-hotel portfolio.
Overall, our HVI analysis reflects a 7% year-on-year increase in hotel values as at the end of 2022, above the European average, but also still below its previous 2019 peak.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
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