Amsterdam is to be a hotel investment hotspot in 2012 according to international real estate consultancy Savills, as a stream of new hotels are set to come online across all cost sectors (from budget to luxury).
According to the firm some 1,440 new rooms will be added in 2012, including 120-room Fletcher hotel in Amsterdam Southeast, 293 rooms at the Wester IJ dock Marina Hotel, 240 rooms at Plot 17 Amsterdam Southeast and boutique hotel Hyatt Andaz opens 122 rooms in a former public library. There will also be two office-to-hotel conversions, the 446-room Ramada Hotel and 219-room Meininger Hotel.
Despite the increased supply the firm believes that occupancy will grow from the current 75-80% to 81% this year. According to the report this increased occupancy will allow for a rise in average room rates.
Clive Pritchard, Head of Savills in the Netherlands, says: "The hotel market is well supported by the Municipality of Amsterdam. Speaking to operators at the international hotel conference in Berlin earlier this month many are looking for opportunities to enter the Amsterdam hotel market or to increase their market share and we expect investors would be prepared to pay a premium for city centre hotels which rarely come up for sale. International banks are still cautious but will provide financing for viable hotel investments."
Dennis Leib, Savills Netherlands said that the firm has noticed increased interest in investing in the Amsterdam hotel market, both from domestic investors and international investors including two long standing Savills clients, Union Investment and Westinvest. According to Leib both have recently bought in the city, with Union Investment purchasing the 207-room Crowne Plaza Amsterdam South hotel, and Westinvest purchasing the American Hotel in a sale and 25-year leaseback deal with Hampshire Hospitality.
- Thursday 22 March 2012