Europe -  Brussels, Belgium

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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 show 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.

The pipeline in Brussels includes nine projects expected to open in the next five years, of which five will be in proximity to the airport. Three of these hotels are conversions of existing properties, while the other six are new developments that are expected to bring over 1,000 new rooms to the market, mainly in the airport area, representing around 5.0% of the current supply. The hotels that are expected to open in Brussels city centre include the 511-room Autograph by Marriott (former Sheraton Hotel adjacent to Place Rogier) in 2023; the 80-room Moxy Brussels Midi Station, also in 2023; and the 126-room Corinthia Grand Place Hotel Astoria in 2024. Some projects currently in the pipeline could be cancelled or experience delays as a result of the pandemic, although there is still limited visibility in relation to this.

The transaction volume in 2018 decreased to €77.0 million from the €100.7 million achieved in 2017 and represents 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, with only three hotels reportedly being sold. These 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 and the 125-room Pullman Brussels Airport as part of the Kadans Science Partner and AXA IM – Real Assets merger.

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)