Savills: Amsterdam is hot spot for hotel investment (NL)
Wednesday 21 March 2012
International real estate advisor Savills expects Amsterdam to be a hot spot for hotel investment in 2012 as a number of new hotels from budget to luxury open in the Dutch capital.
The firm notes that average occupancy rates in Amsterdam stand at 75-80%, due largely to demand from business travelers and weekend tourism, it expects occupancy rates to reach 2007 levels (of approximately 81%) in 2012, which will in turn allow an increase in average room rates. Savills notes the sector is dominated primarily by institutional investors, owner-occupiers and specialized hotel investors with interest both from domestic and international players.
According to Savills approximately 1,440 rooms will be brought to the Dutch hotels market in 2012, including 293 rooms at the WesterIJdock Marina Hotel, 120-room Fletcher hotel in Amsterdam Southeast, 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.
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 center hotels which rarely come up for sale. International banks are still cautious but will provide financing for viable hotel investments."
Dennis Leib, Savills Netherlands, adds: "We are noticing an increased interest in the Amsterdam hotel market both locally and from abroad, including from two of our main clients, the German institutional investors Union Investment and Westinvest who have both recently bought hotel properties in the city."
Union Investment bought the newly opened, 207-room Crowne Plaza Amsterdam South hotel, and Westinvest, part of Deka, purchased the American Hotel in a sale and leaseback deal. For the latter, vendor Hampshire Hospitality signed a 25-year lease contract with Westinvest for the four-star, 175-room hotel.