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Amsterdam has traditionally been one of many essential tourism locations in Europe.
A snapshot of the Amsterdam lodge market in 2024 with an exploration of tourism demand, lodge efficiency, lodge provide, the funding market and the market outlook.
With a inhabitants of greater than 930,000, the capital metropolis of Amsterdam lies on the coast of the province of North Holland. Town – recognized for its historic canals, the well-known Van Gogh Museum, the Rijksmuseum, and the espresso outlets of the Pink Mild District – can be a big monetary and enterprise centre in Europe. There have been greater than 3,500 worldwide corporations within the Amsterdam Metropolitan Space (AMA) in 2023, representing greater than 30% of the private-sector jobs. Town is very accessible through native, nationwide and worldwide transport hyperlinks. Amsterdam has wonderful home and worldwide connections through Amsterdam Schiphol Airport, the European high-speed rail community and the North Sea Canal.
Supply: HVS Analysis
Financial Indicators – The Netherlands
Supply: IMF
Tourism Demand
Amsterdam has traditionally been one of many essential tourism locations in Europe. Between 2010 and 2023, the town’s visitation grew by 4% every year, on common, with greater than 75% of the guests being worldwide. In 2023, the first worldwide feeder markets remained similar to the pre-pandemic years, with the UK (13%), the USA (11%), Germany (10 %) and France (5%) being chargeable for almost 40% of inbound visitors. The home market accounted for 21% of whole visitation, reaching 117% of the pre-pandemic ranges of 2019. After a extreme drop in visitation in 2020 owing to the pandemic, visitation picked up barely in 2021 however really began to recuperate in 2022, following the raise of the journey restrictions in March.
Having reported a rise in points linked to overtourism lately, Amsterdam raised the town tax to 12.5% in January 2024, aiming to cut back the variety of cruise ship arrivals and alter the profile of holiday makers coming to the town. This technique is turning into more and more widespread in European cities going through the identical downside, corresponding to Barcelona and Venice.
Visitation and Accommodated Bednights
Supply: Centraal Bureau voor der Statistiek
Lodge Efficiency
In 2018 and 2019, the Amsterdam market noticed wholesome development in each occupancy and common charge, attaining report RevPAR ranges, earlier than plummeting by roughly 80% throughout COVID.
Regardless of a sluggish begin to 2022, the market skilled a speedy restoration following the lifting of restrictions in March. Owing to a drastic enhance in occupancy (+40 proportion factors) and an equally spectacular development in common charge (+55%), the market’s RevPAR quadrupled year-on-year. Sustaining this momentum in 2023, RevPAR elevated by 35%. Regardless of reaching pre-pandemic ranges in nominal values for the primary time, final 12 months’s RevPAR was nonetheless a few proportion factors behind 2019 in actual phrases. We spotlight that our knowledge pattern leans extra strongly in the direction of the higher finish of the market, as mirrored within the higher-than-average room charges.
Key Metrics
Sources: HVS Analysis
Lodge Provide
Lodge room provide elevated at a compound annual charge of 5% from 2014 to 2023, with roughly 3,200 new rooms since pre-pandemic occasions. Complete lodge provide presently stands at round 42,000 rooms and is usually concentrated within the mid- and upscale segments (roughly 75%). The upscale phase witnessed the best compound annual development charge between 2014 and 2023, at round 8%.
The preliminary ban imposed on new lodge developments within the Canal District in 2015 led to deliberate initiatives relocating to peripheral areas. Nevertheless, to additional enhance tourism circulation and restrict overtourism within the metropolis, the town of Amsterdam applied additional restrictions on new lodge development on the finish of 2016. These restrictions basically prohibit the event of lodges throughout the metropolis centre; sure initiatives, principally throughout the IJ river, can nonetheless nonetheless be accepted. This understandably had a drastic impact available on the market’s pipeline.
Lodge Pipeline
Sources: HVS Analysis
Funding Market
Amsterdam’s lodge funding market has all the time been some of the enticing markets in Europe, with a considerable variety of transactions happening lately. Notable transactions from 2022 onwards embody the sale of the 93-room Mercure Amsterdam Centre Canal in January 2022 (€520,000 per key) by AccorInvest to Ascott Ltd; the 288-room QO Lodge Amsterdam, bought by CBRE IM and Invesco UK to Tristan Capital Companions for €92 million in Might 2022; the acquisition of Accor’s stake within the 178-room Sofitel Legend The Grand by Schroders (€840,000 per room); and the 111-room Hoxton lodge, acquired by Schroders in December 2022 from Ennismore Capital for greater than €540,000 per room. Two transactions occurred in March 2023. The 52-room Lodge Atlantis was purchased by Dutch owner-operator Highland Group for round €9.5 million (€180,000 per room). The long run Maison ELLE was bought by Extendam for an undisclosed quantity. For the most recent worth developments, please consult with our annual European Lodge Valuation Index, which showcases the year-on-year worth development of lodge property in key markets, together with Amsterdam.
Lodge Transactions
Sources: HVS Analysis
Outlook
The Amsterdam market was vastly impacted by the pandemic and the next strict authorities restrictions. Following the weak efficiency throughout 2020 and 2021, a modest restoration began in Q2 2022, constructing momentum for the drastic enchancment showcased in 2023. Though final 12 months’s RevPAR was nonetheless marginally under pre-pandemic ranges in actual phrases, the town’s attractiveness – coupled with well-diversified demand sources and a restricted provide – point out a promising 2024 and, probably, the market’s full restoration. Town’s method to control over-tourism stays necessary to watch, its impact on the excessive season remains to be to be analysed. Nonetheless, Amsterdam stays one in every of Europe’s most coveted lodge markets, standing behind solely Paris, London and Zürich in our European Lodge Valuation Index.
Worth Developments
Sources: HVS Analysis
Maxime Gauthier joined the HVS London workplace as a consulting and valuation analyst in January 2024. Fluent in English and French, he holds a BSc (Hons) from EHL Hospitality Enterprise College and an MSc in Finance from NOVA College of Enterprise and Economics in Lisbon. Previous to becoming a member of HVS, Maxime gained expertise in finance with Marriott in Singapore and with a brokerage agency in France. His major duties at HVS embody valuations of single property and lodge portfolios, feasibility research and market analysis throughout the EMEA area. For extra data, contact mgauthier@hvs.com.
