For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
2024
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2022
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2020
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2019
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2018
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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 2023. Amsterdam Schiphol Airport was ranked the fourth-busiest airport in Europe in 2023 in terms of passenger traffic. The Port of Amsterdam handles mostly freight and cruise ships and is among the top ten busiest ports 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. According to the ICCA, the number of meetings held in Amsterdam recovered to around 60% of the pre-pandemic level in 2022, with the city moving one position down the worldwide ICCA rankings. In 2023, the primary source for visitation to Amsterdam was the domestic market (21.3%), followed by the UK (12.7%) which is connected by Eurostar, the USA (11.3%) and Germany (10.4%); this combination is a robust formula to aid recovery in the post-pandemic world.
Demand from February to April mostly comes from business guests, while leisure demand appears strongly from April to September, historically pushing occupancy over 80% for almost eight months of the year pre-pandemic (and between 80 and 85% for six months in 2023). Average rates are strongest in spring and autumn when the corporate and MICE markets are most active – it is expected that the MICE market will further recover in 2024. 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 just over 1,500 rooms, with the most notable developments including the 120-room Wilde Amsterdam (May 2024), the 579-room Maritim Hotel Amsterdam (opening June 2024), the 134-room Rosewood Amsterdam (November 2024) and the 208-room Le Méridien Amsterdam Harbour City (March 2025). 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.
To address overtourism and generate additional revenue for funding activities to mitigate the negative impact of tourism, as of 2024 Amsterdam is implementing an increase in its city tax from 7.5% to 12.5%, making it the highest city tax level in Europe, which raises concern on its impact on the Amsterdam hotel demand.
While staff availability has broadly returned to normal in Amsterdam, labour costs are expected to continue to rise in the city’s hotel market in 2024 as a result of the new collective labour agreement in the hospitality industry that calls for a wage increase of 8-12% for those employed for a year or longer. This would be the first meaningful impact on wages for a few years, hence effectively allowing for salaries to catch up with inflation.
In 2023, there were only four hotel transactions in Amsterdam, compared to 13 transactions in 2022. In March 2023, the 45-room Hotel Atlantis was sold for a reported €9.5 million to Highland Group (€210,000 per room); during the same month, the 30-room Future Maison ELLE was purchased by Extendam for an undisclosed price. Later in the year, KSL Capital Partners and Zien Group sold the leasehold of the 173-room American Hotel Amsterdam to the Dalata Hotel Group in September, also for an undisclosed amount. Another confidential transaction in December 2023 saw Commerz Real acquiring the 330-room INNSiDE by Meliá Amsterdam.
Overall, our HVI analysis reflects a 1.6% year-on-year increase in hotel values as at the end of 2023, above both the European average and Amsterdam’s 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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