The Dutch hotel industry is doing well - Occupancy has increased in the past year, from 66.7% to 69.2%, according to the HOSTA 2006 report by Horwath Consulting. The occupancy has now largely recovered from the crisis that led to a low point of 65.3% in 2003. However, the climax of 2002 will not be equalled in the next few years. It is expected that the occupancy will increase to 71.8% in 2006 and 72.7% in 2007.

The research was carried out by Horwath Consulting among 239 Three, Four and Five Star hotels in The Netherlands. The data show that the increased occupancy was not reached at the expense of the hotel rates. The average room rate remained stable in 2005 at € 98. This signals the end of a decline that started in 2003, when the average room rate decreased from € 114 to € 102. This year, the average room rate is expected to increase to € 102. For 2007, an average room rate of € 105 is expected.

Revenues and profits increase
With the increased occupancy, the RevPAR (Revenue Per Available Room) has increased for the first time since 2002, from € 65 to € 68. This is an important step in the recovery of the Dutch Hotel Industry, since the RevPAR collapsed after a high point of € 81 to € 66 in 2003.

The Total Revenue Per Available Room, or TRevPAR, also increased in 2005, from € 117 to € 122. This is an increase of 4.3%. Because the expenses also increased, the GOPPAR (Gross Operating Profit Per Available Room) increased by 2.3%: from € 44 to € 45.

Hotel lease revenues
Hotels that are leased by the owner to the operator generated an average lease of € 8,500 per room in 2005. This is 21.3% of the revenues. Hotel rooms in Amsterdam and Schiphol generate a higher lease than hotels outside of this region: € 10,300 per room against € 7,000 per room. The highest leases are paid for five star hotel rooms: € 15,500. Four star rooms generate an average of € 7,400, three star rooms € 5,900.

The research by Horwath Consulting also clearly shows that the lease amounts for hotels have increased through the years. Hotels built before 1980 generate an average annual lease of € 6,600 per room. Hotel rooms built between 1980 and 2000 generate an annual € 9,000. New hotels, built after 2000, generate a lease of approximately € 10,000 per room. Because new hotels often do not yet achieve the optimum revenue level, the total lease for these hotels is 30% of the total revenues; much higher than the 19% paid by hotels built between 1960 and 2000.

New hotel trend: wellness
The HOSTA 2006 report shows that hotels with wellness facilities achieve better results than hotels without these facilities. The average room rate of these hotels is over 20% higher than the national average. The hotel operators are very pleased with the performance of the wellness facilities: 83% find the facilities help increase occupancy and 73% find they help increase total revenues. Of the current wellness hotels, 15% even have plans to expand the wellness. Additionally, 23% of the hotels without wellness is planning to add wellness facilities. These plans vary from a fitness or beauty centre to a complete spa.

Wellness, which includes facilities aimed at physical and mental relaxation and health, is becoming increasingly important for the Dutch hotels. For hotels, wellness facilities are often fitness areas, saunas and swimming pool. Particularly in Amsterdam, many hotels offer massages and beauty treatments.

The HOSTA 2006 report is a publication by Horwath Consulting. The report shows the results of the hotel industry in The Netherlands, Belgium and Luxembourg. Over 300 three, four and five star hotels in the Benelux participated in the research.

www.horwath.nl