Despite COVID-related travel restrictions in The Netherlands being lifted in March 2022, somewhat later than in other European cities, Amsterdam’s hotel sector has made a strong recovery with year-to-May data indicating strong growth compared with the previous year.
The duration of the strict measures imposed by the Dutch government throughout the pandemic resulted in little to no recovery in 2021 but, with restrictions lifted, visitation to the popular Dutch city quadrupled in the first five months of this year compared with 2021, although still 40% below pre-COVID levels of 2019.
The average rate is seeing a robust recovery, with RevPAR for the months of May and June 2022 almost back to 2019 levels, according to our latest Market Pulse, which outlines that the city’s strong recovery is expected to continue.
A ban imposed in 2015 on new hotel developments in the city’s Canal District pushed planned projects into more outlying areas, and further restrictions a year later introduced even tougher measures prohibiting the development of hotels except in designated areas, having a substantial impact on the future hotel pipeline.
This, together with the ongoing popularity of the city from both leisure and corporate visitors, has maintained Amsterdam’s hotel investment market as one of the most liquid and attractive in Europe.
‘Data to the end of June 2022 portrays the enduring appeal of Amsterdam for both its leisure and corporate demand bases,’ commented report co-author Sophie Perret, senior director at HVS London. ‘We expect the post-pandemic recovery to continue in both performance and transactions as the city benefits from its strong fundamentals and well-diversified demand sources.
‘Hotel values have already started to recover, and remain amongst the highest in Europe and with tight restrictions on new development – with just a few hotels scheduled to open in the city in 2023/24 – we expect Amsterdam to quickly recover its position as one of Europe’s more coveted hotel markets,’ added Perret.
You can download a copy of Market Pulse: Amsterdam – The Enduring Appeal by Nikola Miljković and Sophie Perret here.
