HVS Lodge Market Speak & Amsterdam Market Pulse & Elephantine Restoration in Look & By Maxime Gauthier
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Amsterdam has historically been unquestionably one of the indispensable principle tourism locations in Europe.
A snapshot of the Amsterdam hotel market in 2024 with an exploration of tourism seek knowledge from, hotel efficiency, hotel present, the funding market and the market outlook.
With a population of bigger than 930,000, the capital city of Amsterdam lies on the flee of the province of North Holland. Town – identified for its historical canals, the basic Van Gogh Museum, the Rijksmuseum, and the espresso stores of the Purple Light District – might be a serious monetary and business centre in Europe. There were bigger than 3,500 global corporations within the Amsterdam Metropolitan Space (AMA) in 2023, representing bigger than 30% of the deepest-sector jobs. Town is extremely accessible thru local, national and global transport hyperlinks. Amsterdam has grand home and global connections thru Amsterdam Schiphol Airport, the European high-tempo rail network and the North Sea Canal.
Source: HVS Research
Financial Indicators – The Netherlands
Source: IMF
Tourism Request
Amsterdam has historically been unquestionably one of the indispensable principle tourism locations in Europe. Between 2010 and 2023, town’s visitation grew by 4% every Twelve months, on moderate, with bigger than 75% of the guests being global. In 2023, the principle global feeder markets remained the same to the pre-pandemic years, with the UK (13%), the USA (11%), Germany (10 %) and France (5%) being in charge for merely about 40% of inbound visitors. The home market accounted for 21% of total visitation, reaching 117% of the pre-pandemic ranges of 2019. After a excessive drop in visitation in 2020 owing to the pandemic, visitation picked up moderately in 2021 nonetheless actually began to recover in 2022, following the grab of the bound restrictions in March.
Having reported an boost in disorders linked to overtourism in most trendy years, Amsterdam raised town tax to 12.5% in January 2024, aiming to lower the number of cruise ship arrivals and switch the profile of tourists coming to town. This approach is popping into increasingly standard in European cities going thru the the same train, comparable to Barcelona and Venice.
Visitation and Accommodated Bednights
Source: Centraal Bureau voor der Statistiek
Lodge Performance
In 2018 and 2019, the Amsterdam market noticed wholesome progress in each occupancy and moderate charge, reaching portray RevPAR ranges, sooner than plummeting by approximately 80% all thru COVID.
No matter a uninteresting delivery to 2022, the market skilled a like a flash restoration following the lifting of restrictions in March. Owing to a drastic boost in occupancy (+40 share parts) and an equally impressive progress in moderate charge (+55%), the market’s RevPAR quadrupled Twelve months-on-Twelve months. Hanging forward this momentum in 2023, RevPAR increased by 35%. No matter reaching pre-pandemic ranges in nominal values for the principle time, last Twelve months’s RevPAR was peaceable a few share parts leisurely 2019 in precise terms. We spotlight that our knowledge sample leans extra strongly in opposition to the upper cease of the market, as mirrored within the higher-than-moderate room charges.
Key Metrics
Sources: HVS Research
Lodge Present
Lodge room present increased at a compound annual charge of 5% from 2014 to 2023, with approximately 3,200 fresh rooms since pre-pandemic times. Complete hotel present for the time being stands at around 42,000 rooms and is largely concentrated within the mid- and upscale segments (approximately 75%). The upscale section witnessed the superb compound annual progress charge between 2014 and 2023, at around 8%.
The preliminary ban imposed on fresh hotel developments within the Canal District in 2015 led to planned projects relocating to peripheral areas. Nonetheless, to extra increase tourism circulate and restrict overtourism within town, town of Amsterdam applied extra restrictions on fresh hotel construction at the cease of 2016. These restrictions actually restrict the approach of resorts within town centre; decided projects, largely all the diagram in which thru the IJ river, can alternatively peaceable be accredited. This understandably had a drastic pause on the market’s pipeline.
Lodge Pipeline
Sources: HVS Research
Funding Market
Amsterdam’s hotel funding market has repeatedly been unquestionably one of the indispensable superb-looking out markets in Europe, with a well-known number of transactions taking location in most trendy years. Considerable transactions from 2022 onwards consist of 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, sold by CBRE IM and Invesco UK to Tristan Capital Partners for €92 million in Would possibly perchance perchance 2022; the aquire of Accor’s stake within the 178-room Sofitel Tale The Sizable by Schroders (€840,000 per room); and the 111-room Hoxton hotel, got by Schroders in December 2022 from Ennismore Capital for bigger than €540,000 per room. Two transactions passed off in March 2023. The 52-room Lodge Atlantis was bought by Dutch owner-operator Highland Community for around €9.5 million (€180,000 per room). The future Maison ELLE was bought by Extendam for an undisclosed quantity. For the most trendy trace traits, please talk over with our annual European Lodge Valuation Index, which showcases the Twelve months-on-Twelve months trace progress of hotel resources in key markets, at the side of Amsterdam.
Lodge Transactions
Sources: HVS Research
Outlook
The Amsterdam market was very a lot impacted by the pandemic and the following strict govt restrictions. Following the frail efficiency all thru 2020 and 2021, a modest restoration began in Q2 2022, constructing momentum for the drastic improvement showcased in 2023. Despite the truth that last Twelve months’s RevPAR was peaceable marginally under pre-pandemic ranges in precise terms, town’s attractiveness – coupled with nicely-various seek knowledge from sources and a shrimp present – elaborate a promising 2024 and, doubtlessly, the market’s stout restoration. Town’s manner to manage over-tourism remains basic to note, its pause on the high season is peaceable to be analysed. Nonetheless, Amsterdam remains unquestionably one of Europe’s most coveted hotel markets, standing leisurely finest Paris, London and Zürich in our European Lodge Valuation Index.
Label Trends
Sources: HVS Research
Maxime Gauthier joined the HVS London location of job as a consulting and valuation analyst in January 2024. Fluent in English and French, he holds a BSc (Hons) from EHL Hospitality Industry College and an MSc in Finance from NOVA College of Industry and Economics in Lisbon. Forward of becoming a member of HVS, Maxime gained trip in finance with Marriott in Singapore and with a brokerage agency in France. His main tasks at HVS consist of valuations of single resources and hotel portfolios, feasibility studies and market look at within the EMEA plight. For extra knowledge, contact mgauthier@hvs.com.
