Europe -  Brussels

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Brussels, with a population of approximately 1.2 million, enjoys a strategic location in the heart of Western Europe, making it both a regional metropolis and an international hub. In addition to its role as capital of Belgium, the city is home to NATO’s headquarters and is widely known as the ‘capital of Europe’, hosting both the European Parliament and the European Commission. However, described as the ‘new Berlin’ by the New York Times in 2015, an eclectic and creative facet of Brussels has recently emerged, represented by its community of artists, architects and designers.

Arrivals in Brussels grew constantly since the decline observed in 2009 – following the economic crisis – until 2015. After the terrorist attacks in March 2016 heavily impacted visitation to the city, 2017 showed signs of recovery, primarily coming from the business demand generated by the various EU and international entities based in Brussels, while leisure demand was still below previous levels. However, 2018 saw the return of the leisure segment, leading to a 10.0% increase in visitation. The Brussels hotel market bounced back in 2017 with RevPAR growth of around 20.0%, and this positive trend continued into 2018 and 2019 as the market again recorded impressive RevPAR growth of over 10.0% and 5.0%, respectively. 2020 performance figures showed a significant contraction on account of the COVID-19 pandemic and subsequent travel restrictions. As a result, hotel values in Brussels decreased by around 14.6% on 2019. 2021 saw the start of recovery, mainly from the summer onwards, leading to a 5.2% increase in hotel values compared to the previous year. However, overall hotel performance in 2021 continued to be significantly impacted, with RevPAR being around just 25.0% of that achieved in 2019.

The pipeline in Brussels continues to be modest and includes nine projects expected to open in the next five years, of which four will be in proximity to the airport and one in the Brussels Expo area. Two of these hotels are conversions of existing properties, while the other seven are new developments that are expected to bring over 1,000 new rooms to the market, mainly in the airport area, representing around 6.0% of the current supply. The hotels that are expected to open in Brussels city centre include the 198-room The Hoxton Brussels, opening in 2022; the 511-room Cardo Brussels Hotel, Autograph Collection (former Sheraton Hotel adjacent to Place Rogier), also in 2022; the 80-room Moxy Brussels Midi Station in 2024; and the 126-room Corinthia Grand Place Hotel Astoria, also opening in 2024.

The transaction volume in 2018 decreased to €77.0 million from the €100.7 million achieved in 2017 and represented a third of the record – €227.5 million – reached in 2016. In 2019, a further 10 hotels changed hands, including the 294-room Sheraton Brussels Airport for €37.0 million (approximately €126,000 per key). In line with the rest of Europe, the volume of transactions decreased substantially in 2020 (three hotels sold) and 2021 (one hotel sold). These transactions included the 80-room Hotel Izán Avenue Louise for €8.4 million (around €105,000 per room), the 172-room Ramada Brussels Woluwe as part of the BEL hotel portfolio 2020, the 125-room Pullman Brussels Airport as part of the Kadans Science Partner and AXA IM – Real Assets merger and the 148-room Qbic Brussels.

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
Senior Director
[email protected]
  • +44 20 7878 7722 (w)
  • +44 0 7725781037 (m)
Nikola Miljković
Associate
[email protected]
  • +44 0 2078787724 (w)
  • +44 0 7593572865 (m)