Investments grow by 200% to a record volume of € 1.8 billion

According to the report ‘Spotlight Hotels – Dutch hotels attract more than just tourists’ published today by international real estate advisor Savills, Dutch hotel investments reached a record total volume of  € 1.8 billion in 2017.

This record investment volume can be explained by a number of important factors includingthe rapidly increasing number of tourists visiting the Netherlands. Although new developments have led to a considerable increase of hotel rooms, the number of tourists continues to outstrip supply. This is causing room rates and revenues to rise, making hotel investments more appealing.

Where the Dutch hotel market used to be dominated by a number of specialised players, new investors are entering the market now, seeking to diversify product and income within their portfolios.

Savill says that it’s noteworthy that one third of all 2017 investments came from Germany , while about a quarter of  investment volumes were from Asian investors, while the share of domestic buyers  was relatively low.

Bas Wilberts, Head of Alternative Investments at Savills Netherlands, says: “We still see a strong focus on Amsterdam hotel investment. Amsterdam is extremely popular with tourists, accounting for almost half of the foreign visitors to the Netherlands. This high demand is reflected in the room rates and RevPAR of Amsterdam hotel rooms, which are the highest of the Netherlands and in the top ten of Europe. Naturally, the number of developments and investment volumes are therefore also highest in the Amsterdam area, where approximately 4,000 rooms will enter the market in 2018, and an additional total of 3,000 rooms are expected until 2020.”

As new hotel developments continue to be outpaced by the flourishing tourism industry in the Netherlands, hotel investment fundamentals like turnover growth and compressing yields will continue to strenghten during the course of 2018. Savills therefore expects another good year for Dutch hotel market investments, with the market again dominated by cross-border investments.

To read more download the full report here.