Uncategorized – Invast Hotels

Invast Hotels – NL Hotelsteden / Hotelcities Index 2019

Jeffrey — Tue, 03 Nov 2020 10:03:48 +0000

For the second time in 2019 Invast Hotels carried out the major survey into the occupancy rates and average room prices of hotels in the largest hotel cities in the Netherlands in 2018. This research provides the best insight into the regional differences of cities within the Dutch hotel market. Each city was surveyed with more than 10 hotels in order to be able to speak of a fully-fledged hotel market within a city.

In the survey Invast Hotels approached all hotels in the largest hotel cities in the Netherlands with a survey that asked for the average room price and occupancy rate of 2018. Hotels were first approached by email and if there was no response by phone. No less than 268 hotels participated with a total number of hotel rooms of 21,619. Based on the total number of hotel rooms, this represents a participation rate of 34%. This is an unprecedented high participation rate, which gives the best insight into how the Dutch hotel cities function.

Results per city

The average occupancy rate of all participating hotels in 2018 was 80.13%. The average room price was € 113.23 and the RevPAR (Revenue Per Available Room) was € 90.73. Not surprisingly, Amsterdam is the best performing city in the Netherlands, both in terms of occupancy rate and average room price. The Hague, Rotterdam, Utrecht and Maastricht will also show a high RevPAR of over € 85 in 2018.

The graph below shows the average occupancy of the largest hotel cities in the Netherlands. Delft and Zwolle have been left out of the graph as these cities had an occupancy rate of less than 20%, as a result of which these data are not considered representative by Invast Hotels.

In most of the cities an occupancy rate of between 75% and 80% is achieved. It is also noteworthy that Amersfoort will have achieved a relatively high occupancy rate in 2018. The following graph shows the average room price. This makes it clear that although Amersfoort achieves a high occupancy rate, the average room price is well below the average.

By multiplying the occupancy rate and the average room price, a RevPAR can be calculated. The graph below shows the RevPAR of the largest hotelcities in the Netherlands in 2018.

With the above graph it becomes clear why Amsterdam is often described as a separate market in the hotel business: the difference compared to other cities is very large. The other major cities in the Netherlands follow at an appropriate distance. Cities such as Haarlemmermeer, Amersfoort and Leeuwarden achieve a high occupancy rate but with a lower average room price, making these cities show an average lower RevPAR.

Results per star rating: 1 = 2 star rating

A striking result is that no significant difference in average room price can be observed between one and two star hotels. However, one-star hotels achieve a lower occupancy rate compared to two-star hotels. As expected, the occupancy rate of five star hotels is below average, but the five star hotels show a substantially higher price per room, well above €200,- per room. The tables below show the results per star rating.

Table

For hotels, participation is important to show banks, municipalities, shareholders, boards of directors what the results are of the hotel in the market where it is active. This allows for a better understanding of the risk, which can be helpful with financing or expansion opportunities within a municipality.

The table below provides a total overview of the data presented in this article for the main 16 Dutch hotel cities. Invast Hotels would like to thank all participating hoteliers and hopes for an even higher participation rate next year.

Authors: Bastiaan Driessen, Jelle Straatsma.

Invast Hotels is engaged in transactions, valuations and research in the field of Hotels and Real Estate. By doing a lot of research every year Invast Hotels makes the Dutch hotel market more transparent, which contributes to the professionalization of the hotel market in the field of financing and investments.

Hotel real estate transactions 2019 – over the top!?

Jeffrey — Tue, 03 Nov 2020 09:42:35 +0000

In 2019 more than € 1.1 billion worth of hotel real estate was sold in the Netherlands, according to the annual update of Invast Hotels. And even with the highest average price per hotel room sold ever! This is a slight increase compared to 2018, when more than € 910 million in hotel real estate was sold. The transaction volume was boosted in 2019 by the sale of DoubleTree by Hilton Amsterdam Central Station for an estimated amount of € 425 million. This is the highest amount for which an individual hotel was sold in the Netherlands. In 2017 the same hotel was sold for € 350 million, an increase of more than 20% in 2 years.

The transaction of the development project Y-Towers in Amsterdam where a Maritim hotel with 579 rooms is planned is not included in this report. The total transaction price of this development has been published as approximately € 460 million, but this development also includes apartments and a large- scale parking garage, which may cause this transaction to count and give a distorted picture.

The annual update of the hotel real estate is based on the unique hotel database of Invast Hotels, which now includes over 1,900 of the larger hotels in the Netherlands. In addition to the cadastral sales transactions of the real estate, the list is also supplemented with corporate transactions that are not registered at the Land Registry. In these latter transactions the shares in a company are transferred, which information is not publicly available. As a result, this transaction database is the most reliable source of hotel transactions in the Netherlands.

The average transaction price per room in 2019 was € 247,996, an increase of approximately 46% compared to 2018 (€ 170,122). The graph below shows the development of the total volume and price per room of hotel real estate transactions in the Netherlands between 2008 – 2019.

It is striking that in 2019 not a single five-star hotel was sold and only a few hotels with none, one or two stars. Traditionally, the most sold hotel rooms belong to the four-star category.

Transactions

A number of very high-profile hotel transactions took place in 2019. The table below shows the larger and high-profile transactions of 2019 in the Netherlands.

DoubleTree by Hilton Amsterdam Central Station

Since the transaction of DoubleTree by Hilton Amsterdam Central Station accounts for no less than 38% of the total transaction volume in the Netherlands, an analysis without this transaction is also interesting. Without the DoubleTree by Hilton Amsterdam Central Station transaction, the average transaction price per room in the Netherlands will drop from € 247,996 to € 175,937 in 2019. The graph below shows the development of the total volume and price per room of hotel real estate transactions in the Netherlands between 2008 – 2019, excluding the DoubleTree by Hilton Amsterdam Central Station transaction.

Amsterdam

The Amsterdam hotel real estate market is a unique market within the Netherlands. Amsterdam is highly sought after by domestic and foreign tourists and many business guests also have an overnight stay in Amsterdam. This results in higher occupancy rates and average room prices throughout the year compared to the rest of the Netherlands.

The total transaction volume in Amsterdam in 2019 was over € 814 million, approximately 72% of the total transaction volume in the Netherlands. The average price per room in Amsterdam in 2019 was € 375,127. By way of comparison, the transaction volume in Amsterdam in 2018 was approximately €468 million with an average price per room of €327,079.

The table below shows the differences in price per room in 2019 between Amsterdam and the rest of the Netherlands.

When interpreting the table above, one should take into account the low number of hotels with none, one or two stars sold in 2019. The price per room for four-star hotels is also strongly influenced by the transaction of DoubleTree by Hilton Amsterdam Central Station. Without this transaction the price per room of four star hotels in Amsterdam was € 279,119 and in the Netherlands including Amsterdam € 205,563.

Netherlands

The transaction volume of the Netherlands excluding Amsterdam in 2019 totalled over € 311 million. This transaction volume is spread over a larger number of hotels and rooms, resulting in a lower price per room than in Amsterdam. Outside Amsterdam, an average of € 131,393 was paid for a room in 2019, less than half the Amsterdam price.

Top 5 = 55%

The differences in transaction size are large in the Netherlands. The 5 largest transactions accounted for 55% of the total transaction size.

The map on the right shows the geographical position where the transactions took place in 2019. As usual, many transactions took place in

Amsterdam.

Expectations 2020: not a top year (unfortunately).

The effects of the COVID-19 crisis on hotel investments in 2020 will be significant. Hotels currently have very low occupancy rates or are completely closed. It is clear that this crisis will have a major impact on the transaction volume of hotel real estate in 2020 and possibly subsequent years.
Investors and banks are very reluctant to make new investments and there will be far fewer transactions in the coming period. The exact extent and duration of the crisis is difficult to predict. The longer the current situation persists, the greater the impact will be. If 2020 becomes a top year for hotel transactions, this will largely be due to the negative effects of the current crisis. In July 2020 the Invast Hotels 2020 outlook of transactions over the rest of this year will hopefully be able to make a clearer prediction.

INVAST HOTELS • Holland hotel research

www.invasthotels.com

Authors: Bastiaan Driessen, Jelle Straatsma

Both this article and the data sources are copyrighted by Invast B.V. Nothing from this publication may be copied or used in other publications without written permission from Invast B.V..

International Hotel Investment Forum 2018

Jeffrey — Mon, 02 Nov 2020 10:44:19 +0000

Invast Hotels will attend the annual International Hotel Investment Forum (IHIF) in Berlin. The event will take place from Monday 5 March 2018 till Wednesday 7 March 2018.

Make an appointment with Bastiaan Driessen if you want to know more about the hotel investment opportunities in Amsterdam or if you are interested in the Dutch hotel market. You can reach us through +31 (0)70 3385833 or by mail: Driessen@invast.nl

Dutch hotel market keeps breaking records

Jeffrey — Mon, 02 Nov 2020 10:43:00 +0000

Invast Hotels reported earlier this year that the number of hotel transactions and the level of the hotel room price in 2017 are breaking records.

According to ABN AMRO Bank, the number of hotel guests in The Netherlands is expected to reach a record height of more than 28 million guests in 2017. The number of hotel guests that visit The Netherlands is growing strongly, an increase of 2.6 million hotel guests compared to last year.

Approximately 80% of all international hotel guests who visit the Netherlands comes from Europe. Most European visitors come from Germany, followed by Great Britain and Belgium. Within the group of travelers from outside of Europe, most visitors come from the Americas and Asia. Hotel guests appear willing to pay higher prices this year, which means revenues figures of hotels are increasing as well. A 7% revenue increase is predicted for hotels throughout 2017.

Invast Hotels confirms this trend. Through the data obtained from the many hotel valuations a revenue increase is observed in both Amsterdam as well as elsewhere in the country. In addition, this increase is not only seen in hotels in the larger cities, but als in hotels outside of the larger cities.

Invast Hotels reports records hotel transactions half 2017

Jeffrey — Mon, 02 Nov 2020 10:39:13 +0000

Invast Hotels reports a record hotel transaction volume over the first 6 months of 2017 in the Netherlands.

Each year Invast Hotels publishes an overview of hotel transactions in the Netherlands and gives an outlook for the rest of the year. The unique hotel ownership database of Invast Hotels serves as a basis for the list of transactions.

Hotel market growth in the Netherlands

The number of hotel stays has risen, according to the Dutch Central Bureau of Statistics. More than 18.4 million hotel nights sold were reported till May 2017, a growth of nearly 7.9% compared with the same same period the year before. The hotel market throughout the Netherlands shows substantial growth as it benefits from the improved economic situation and the increase in the tourism sector. The hotel market growth can also be seen in the number of plans for hotel developments. In the first half of 2017, 88 (re)development plans were registered, of which 59 new developments and 28 renovation plans. The supply of hotels increases structurally throughout The Netherlands. Hotel chains expand and new hotels developed are larger than average in terms of room capacity.

Hotel transactions 2017

Low interest rates over the past years combined with an attractive hotel market, contributed to a significant activity in hotel real estate investments. The first six months the total transaction volume is already higher than € 519 million! For the full year 2016, the total transaction volume was € 482 million. Although the number of transactions is not the highest, the investment volume is already higher than previous year as recorded by the transaction research of Invast Hotels.

Responsible for this high transaction volume, is the single-asset deal in Amsterdam of the Doubletree Hilton Hotel for a total amount of € 356 million (€ 639.000, – per room).

Source: Invast Hotels * 01-01-2017 till 01-07-2017

Outlook 2017: Best Hotel transaction year ever.

Interest rate levels and financial markets are expected to remain stable. Invast Hotels anticipates a further increase in the transaction volume for the second half of this year. National and international demand for hotel investments in Amsterdam remains higher than in the rest of the Netherlands. However, due to limited supply in Amsterdam, hotel investment opportunities in other major cities in the Netherlands will become more attractive als alternative for Amsterdam located investments. 2017 is most likely to be the year in which the highest hotel transaction volume will be achieved for the last 10 years.