Dutch hotel investors optimistic for growth

INTERNATIONAL REPORT — After lagging significantly behind its European neighbors, hoteliers and analysts say the Dutch hotel investment market is entering a new era. Visitor growth, slowing inflation and limited supply are driving increased investor interest, along with rising room rates and operating profits.

Following a period of significant investment doldrums, Savills reports a 237% year-on-year increase in hotel investment volumes in the Netherlands in 2024, led by Amsterdam and Utrecht.

According to CBRE, much of the interest is coming from opportunistic private investors and private equity, with a focus on value-add products.

Marieke Dessauvagie

One example is Leonardo Hotels, the European division of the Fattal Hotel Group. The company has been riding the wave of the Dutch market's uptick since 2023, said Marieke Dessauvagie, development & project manager at Leonardo Hotels.

“The main drivers were the excellent performance of hotels throughout the country, and the positive outlook for 2024 and beyond,” she said. “The outstanding performance was a great motivator to focus on growth. All of this combined led to an increased interest in hotel investments.”

Leonardo’s acquisition of 12 Dutch hotels from the Zien Group last June was part of a broader growth strategy in the Benelux (Belgium, the Netherlands and Luxembourg) region, Dessauvagie said.

“Now, we are present in all main markets in the Netherlands, like Amsterdam, Rotterdam, The Hague, Utrecht, Eindhoven and Maastricht and will bring new brands like NYX Hotel and Leonardo Limited Edition to the Dutch market,” she said. “We mostly see opportunities for growth in cities like The Hague, Utrecht and Maastricht, as we continue to see demand growth with limited new supply coming in.”

These transactions confirm the interest of buyers, including ourselves, in existing assets rather than developments.

Marieke Dessauvagie

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The Zien Group additions represented over half of Leonardo’s new €604 million in hotel assets in Central Europe in 2024 and almost doubled its Benelux portfolio to 28 hotels. The rebranding of the Designhotel Maastricht in the Netherlands, as the Leonardo Boutique Hotel Maastricht City Center, started a major rebranding process in February.

Dessauvagie said notable transactions in the market include Spanish billionaire Amancio Ortega’s acquisition of Minor Hotel’s Avani Museum Quarter Amsterdam Hotel, along with the February purchase by another Spanish investor of the Holiday Inn Express City Hall Amsterdam from the local Caransa Group and the switch in ownership of the Pullman Eindhoven Cocagne for €70 million to the family-run Dutch hospitality chain, Van der Valk.

“These transactions confirm the interest of buyers, including ourselves, in existing assets rather than developments,” said Dessauvagie. The main exception to this strategy is the new Ruby hotel under development in Rotterdam, set to open in 2026.

“The new Ruby hotel in Rotterdam… is the only development project that was sold through a forward sale,” she said. “This trend has been ongoing for several years and we expect it to continue.”

CBRE noted the arrival of the Ruby Rotterdam deal and Van der Valk’s ongoing transformation of Boompjes into a 300-key hotel, reflecting increasing interest in converting offices into hotels.

Haven Hotel Rotterdam, Curio Collection by Hilton, is a notable renovation and rebrand in the region.

Rotterdam has also been a focus of recent investments for independent hotel management company Cycas Hospitality, as it expands its presence in its home market through partnerships with Hilton, Marriott and IHG.

The renovation and rebranding of the Haven Hotel Rotterdam, Curio Collection by Hilton and DoubleTree by Hilton Rotterdam Centre is another notable investment in the region. A pair of Amsterdam-based companies, Annexum and Orange Investment Managers, acquired the dual-branded properties in 2023 with Cycas Hospitality serving as the operators. The hotels continued to operate while undergoing renovations and reopened in September, according to Ronald Jansen, partner at Annexum.

Despite a forecast ADR dip due to further accommodation tax hikes in early 2026, Jansen believes the property's outlook is positive.

Spending is already up… and based on positive long-term trends, we foresee increasing demand for hotel accommodations.

Ronald Jansen

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“Together with our partners and investors, a lot of work has been done on the renovation and repositioning,” he said. “Spending is already up… and based on positive long-term trends, we foresee increasing demand for hotel accommodations.”

Most hoteliers and investors are confident that a full recovery is underway in the Netherlands, driven by tourism surges and higher occupancy rates.

The Hague saw a 14% increase in overnight guests this summer compared to 2023, according to the Netherlands Central Bureau of Statistics (CBS). Visitor nights in Amsterdam rose by 4%, and occupancy rates in Rotterdam jumped by 10%, fueled by increasing international and domestic tourism demand.

Alexander Kluit, managing director of Leonardo Hotels Benelux, believes conditions are favorable in all the key markets.

“We recognize the impact of the Value Added Tax (VAT) increase [in 2026], but we invest for the long term,” he said. “We strongly believe that demand for hotels will continue to grow in the medium to long term. Therefore, we look beyond the immediate impact and we are excited about the growth.”