Hotel occupancies in Belgium, The Netherlands and Luxembourg are on the rise; after the recent crisis, the number of hotel guests had declined, but in 2010 more hotel rooms were occupied.
Additionally, the decline of the average room rates has been stopped and profits are increasing. The best results were achieved in Amsterdam and in the top segment. The expectations for 2011 and 2012 are cautiously optimistic.
The Netherlands: Recovery of occupancy, stabilisation of room ratesThe research shows that the average room occupancy in the Netherlands has increased from 62.1% in 2009 to 65.1% in 2010. The hotel market is recovering from the credit crisis, which caused strong decreases in occupancy in 2008 and 2009. However, occupancies are still well below the level of 2007, when the average occupancy was 72.5%.
The average room rate stabilised at 93. In 2009, the average rates had dropped by 11%.
The RevPAR, the revenue per available room, recovered as well because of the rising room occupancies, from 58 in 2009 to 60 in 2010.
The gross operating profit per hotel room increased by 16%, from an annual 12,133 in 2009 to 14,085 in 2010. This was made possible by the higher revenues, as well as lower costs due to conservation measures in 2009. Expressed as a percentage of total revenues, the profits increased from 31.1% to 35.4%.
The recovery in the Netherlands is carried by the hotel market in Amsterdam. Occupancies in the Dutch capital increased from 67.5% to 75.1%. The average room rates in Amsterdam increased slightly, from 108 to 109. The RevPAR increased by 12% to 82. The profits per room in the Amsterdam hotels increased by 33%, to 18,412. This is over 67% higher than the profit per hotel room in the rest of the Netherlands.
Especially the five star hotels in the Netherlands are doing good business once more. Occupancies increased in all star segments, but only the five star market also achieved a considerable increase in average room rates. The average rate for a five star hotel room increased from 155 to 181, an increase by 17%. Because of this, the total revenues in the five star hotels increased by 22% and the gross operating profits by 36%.
Belgium & Luxembourg: higher occupancies and average room ratesThe HOSTA 2011 report shows that the average occupancy in Belgium increased from 63.1% in 2009 to 68.1% in 2010, an increase of 5.0 percentage points. The average room rate increased by 7.1%, from 84 to 89. The RevPAR recovered as well, from 53 in 2009 to 61 in 2010.
The average gross operating profit per hotel room increased by 11.4%, from 8,117 in 2009 to 9,043 in 2010. As a percentage of total revenues, the gross operating profit increased from 23.0% to 24.8%.
The Brussels region especially is showing a strong recovery. The occupancy increased by 5.0 percentage points, from 64.1% to 69.1%. The average room rate increased by 7.4%, to 101. The RevPAR increased from 61 to 70, an increase of 15%.
In Flanders, the occupancy rate increased as well, but the average room rates increased only slightly. Occupancy increased by 6.9 percentage points to 68.8%. As the average room rates increased by 1.2% to 79, the increase in revenues was 15%.
The occupancy in Walloon however decreased, from 63.5% to 60.8%. Because the average room rates here did increase by 7.6% to 70, the RevPAR inceased by 4.9%.
In Luxembourg, the occupancy increased from 62.5% to 64.9%, while the average room rates increased to 92. The RevPAR increased to 60.
ForecastHotel managers in the Netherlands are expecting a slow recovery of the economy and the hotel market. Only a small growth is expected for 2011 and 2012. For 2011, the expected average occupancy is 68.2%, with an average room rate of 95. For 2012, the projected occupancy is 70.1% and the projected average room rate is 98. The results will then still be below the level of 2008. Most Dutch hotel managers (53%) expect that the hotel market will not be completely recovered until 2014 or 2015.
Ewout Hoogendoorn, director of Horwath HTL: "The hotel market follows the economy. Due to the slowing growth in the world economy and the increased uncertainty about the stability of the Euro zone, hotel managers have become more cautious about the future."
The hotel managers in Belgium are more optimistic. For 2010, an occupancy of 71.8% and an average room rate of 93 are projected, brining the results back at the level of 2008. Most Belgian hotel managers (58%), expect a full recovery of the hotel market in 2011 or 2012.
Conversion of office buildings to hotelsCurrently, many plans are being developed to convert empty office buildings into hotels, without a good look at the feasibility of these plans. Due in part to the credit crsis, over 7 million square meters of office space in the Netherlands is unused. Partly initiated by municipalities, a conversion from office to hotel is often considered. At the moment, hotels are being realised in former office buildings in Amsterdam, Rotterdam, The Hague and Utrecht. In Amsterdam, the Getronics building at Rembrandtpark is being converted into a four star, 446 room hotel. Recently opened hotels in former office buildings are Holiday Inn Express Schiphol Airport and NH Musica in Amsterdam. Often developments are abandoned in the planning stage, as with the former ABN office at the Rembrandtsquare in Amsterdam.
Ewout Hoogendoorn, director if Horwath HTL: "When the question of hotel conversion is analysed more thoroughly, it often turns out that the location is not suited for a hotel, or the building is fysically unsuited, or the converion is simply too expensive."
Sustainable hotelsMore and more hotels are focusing on sustainability and corporate responsibility. On average, the hotels in the Netherlands invested 600 per room in sustainable measures in the past five years. The average payback period is 4 years.
The HOSTA report shows that 44% of Dutch hotels now has a sustainability certificate. The most used certificate is Green Key, with 80% of all certified hotels.
In Belgium, only 20% of hotels has a sustainability certificate, but many hotels are working on certification by 2012. Investments include energy conservation, LED-lighting and consciousness improvement among guests and staff.
Marco van Bruggen, senior consultant of Horwath HTL: "A sustainability certificate is no longer a unique selling point, but a requirement. International booking agents often only work with certified companies. Therefore, many hotels feel obligated to gain a certificate."
Green Key has three levels: Gold, Silver and Bronze. Most hotels are going for gold: as far as marketing is concerned, half measures are useless.
Results per regionThe table below gives an overview of the results per country and region.
HOSTA 2011
The HOSTA 2011 report is a publication by consulting agency Horwath HTL. The report gives the results of the hotel industry in Belgium, the Netherlands and Luxembourg. A total of 415 three, four and five star hotels in the Benelux participated in the research.
For more information please contact:
HORWATH HTL
Marco C. van Bruggen
Van Hengellaan 2
1217 AS HILVERSUM
NEDERLAND
vanbruggen@HorwathHTL.nl
www.HorwathHTL.nl 
