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Hotel Intelligence
Tourism Demand
Supply Performance
Qui
ck fa
cts
March 2015
Amsterdam
Preliminary data indicates that tourism in Amsterdam is growing faster than the average of competing cities in Europe in terms of total of overnight stays and international stays. During the first nine months of 2014, the total number of bed nights in Amsterdam rose 10.7%. Bed nights by international visitors
increased 11.5% while bed nights by Dutch visitors rose 7%. The UK remainsone of the most popular source markets for Amsterdam, followed by Germany, Italy, France and the USA. The leisure market increased slightly more than the
business market in terms of bed nights (13.2% vs. 5.5%).
In 2014, total passenger arrivals reached a record 54.9 million at AmsterdamSchiphol Airport (AMS), a 4.5% increase compared to 2013. A master plan to
increase space for aviation, security, retail, and lodging is set to finish by 2016. Moreover, construction of a number of hotels near the airport including Hilton, Hilton Garden Inn, Novotel, and aloft are expected to complete in the
coming years in order to meet business demand which is high throughout the year due to a number of international companies located in the city.
As 2014 came to a close, there were 351 hotels in greater Amsterdam, with c. 31,126 rooms. About 53% of room stock is in the upscale and upper upscale segment. 66% of hotels are unbranded which is relatively high
compared to other European cities. Amsterdam has a strong development pipeline with c. 3,507 rooms in the planning stage or already under
construction. The market is expected to welcome major international brands by 2016 including Hyatt Regency, Courtyard by Marriott, Aloft and a W Hotel.
The hotel market in Amsterdam has historically witnessed strong hotel trading performance, reflecting the robust tourism demand. From 2008 to 2014,
occupancy has averaged around 75%, average rates at €132 and RevPAR at €99. After strong performance in 2013, the positive trend continued in 2014
with RevPAR rising 6.2% to €108. While €4 were added to average rate, occupancy rose 2.5% to 79%.
Amsterdam is the financial and cultural capital of the Netherlands, home to many Dutch institutions and the world’s oldest stock exchange. Although the seat of the Dutch government is in the Hague, Amsterdam is the country's nominal capital. It is also the country’s largest city, with a population of around 1.6 million living in Amsterdam’s greater metropolitan area. Amsterdam is one of Europe’s most popular tourist destinations and receives over 4.8 million international visitors every year, drawn to the city’s wealth of cultural attractions such as the Van Gogh museum, the recently renovated Rijksmuseum and Anne Frank’s house. The city also benefits from high year-round business demand supported by the large number of foreign companies located in the city.
1.4%2015 ForecastGDP Growth
54.9 million2014 PassengerArrivals at AMS
31,126 Hotel Rooms
€108RevPAR6.2%
79%Occupancy2.5%
€136Average Rate3.6%
% change compared to the prior yearHotel performance sourced from STR Global
COPYRIGHT © Jones Lang LaSalle IP, Inc. 2015. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
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2008 2009 2010 2011 2012 2013 2014
Airp
ort T
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Schipol Airport Passengers Arrivals
Source: Schiphol Airport
Contacts
Investment
€
Outlook
NotableDealsPipeline
Recent Openings
InfrastructureDevelopments
Jessica JahnsHead of EMEA [email protected]+44 (0)20 7399 5821
Amsterdam Transaction Volumes
Source: JLL Hotels & Hospitality
The hotel investment market has had a roller-coaster ride over the last 10 years, with the first boom in 2008, followed by a second in 2013. In the latter year, transaction volumes in Amsterdam reached €434 million, a 186% uplift compared to 2012. This was largely driven by a number of single asset deals including the NH Grand Hotel Krasnapolsky and the Hotel Pulitzer Amsterdam.
During 2014, there were just a handful of single asset deals. The 232-room NH Amsterdam Centre was bought by Foncière des Murs for €52.4 million, the 252-room Radisson Blu Hotel Amsterdam sold to Union Investment Real Estate GmbH for €90 million and the 252-room Holiday Inn Express Amsterdam Sloterdijk Station, acquired by Invesco for €23 million. Alongside these, a further five hotels were sold as part of the Moor Park Portfolio deal which was sold to Accor for €289 million. The Crowne Plaza Schipol and the Holiday Inn Amsterdam were sold as part of the 18-asset Project Europe portfolio sold by Ivanhoe Cambridge to Apollo Management International LLP while the InterContinental Amstel was part of a wider InterContinental hotels portfolio sold across Europe, bought by Katara Hospitality for €350 million.
A return to growth for the economy and burgeoning passenger arrivals at Schiphol Airport will help ensure steady trading fundamentals in one of Europe's most popular destinations for both business and pleasure. The calibre of recent hotel openings such as the Waldorf Astoria are enhancing Amsterdam’s already firm position as an international gateway. Foreign interest remains acquisitive following a string of high profile transactions in the heart of the city, which we expect to strengthen further as policy-led entry barriers increase alongside solid economic prospects. However, the lack of available stock could result in a further slow-down of investment activity.
With one of the strongest room pipelines in Europe and to prevent oversupply in the city, the local government recently introduced stricter planning requirements for building new hotels in the city centre. In the long term, we expect hotels will be able to benefit from a consolidated local market and the ability to increase room rates.
Hotel De Hallen55 rooms, Opened 2014
Best Western Premier Hotel Couture
207 rooms, Opened 2014
Volks Hotel172 rooms, Opened 2014
Waldorf Astoria93 rooms, Opened 2014
W Hotel Amsterdam238 rooms, Due 2015
Courtyard Amsterdam Atlas Park
170 rooms, Due 2015
Hilton Amsterdam Airport Schiphol
433 rooms, Due 2015
Holiday Inn Express Amsterdam Sloterdijk Station
December 2014, €23m
Radisson Blu Amsterdam June 2014, €90m
Park Hotel AmsterdamOctober 2013, €76m
NH Amsterdam CenterJune 2014, €52.4m
North/South Metro LineDue 2015
Zuidas DockDue 2030
Novotel Amsterdam Schiphol308 rooms, Due 2015
StadiumDue 2018
Adam WilsonHotels & Hospitality in [email protected]+44 (0)207 399 5373
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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
€M
illio
ns
COPYRIGHT © Jones Lang LaSalle IP, Inc. 2015. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
