Europe -  Amsterdam, Netherlands

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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 2020. 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 were cancelled or postponed until 2021 owing to COVID-19. Key cancelled events were ADE20 (dance), EAU20 (medical), ESC20 (medical), Sail Amsterdam (nautical exposition) and IBC20 (one of the Netherlands’ largest trade fairs). Conventions that were pushed back to 2021 and beyond included Money 20/20, a Formula 1 race, Intertraffic (motor show) and Interclean (chemicals). Amsterdam’s hotel demand largely stems from leisure clientele (circa 65.0%). The primary source for visitation to Amsterdam is 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.

Amsterdam’s hotel pipeline consists of almost 2,750 rooms due by 2025, circa 7.0% of the existing supply. However, a number of the projects sit outside the city centre given the hotel development restrictions imposed by the state in an effort to control tourism flows and address concerns over the constantly rising cost of living. Furthermore, some of the current pipeline projects may be deferred or not come to fruition altogether as a result of difficulties confronting developers during the pandemic. In 2020, a volume of roughly €37.8 million across two hotel properties (the 108-key A'DAM Tower – Sir Adam and the 53-key The Bridge Hotel) traded hands, constituting a decline of 97.0% over 2019 which saw 12 hotels transact. In larger context, Amsterdam ranked 16th in Europe for the number of hotels sold throughout 2020. Overall, our HVI analysis reflects a year-on-year drop of 10.3% in hotel values as at the end of 2020.

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%

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Nikola Miljković
[email protected]
  • +44 20 7878-7721 (w)
  • +44 7 593572865 (m)