Double blow for the hotel sector following VAT increase

A fall in both occupancy rates and room rates is putting Dutch hotels under severe pressure in terms of profitability and financial flexibility

In the third quarter of 2026, the Dutch hotel sector faced a marked deterioration in operating results compared with the same period a year earlier, prior to the increase in VAT on accommodation from 9% to 21%. This is evident from a survey conducted by Koninklijke Horeca Nederland (KHN).* Both occupancy rates and average room rates are falling, whilst operating costs continue to rise sharply. Average net room revenue per available room has fallen by 8%. The survey also shows that nearly three-quarters of hoteliers see their financial position deteriorating, and just over two-fifths have seen their operating profit fall by more than 10%. Only 46% of hotels report that they are operating profitably.

Hoteliers are facing a double blow: relatively fewer rooms are being sold, and a lower net price (the room rate excluding VAT) is being achieved per room. Nationwide, the average occupancy rate fell by 4.5%. At the same time, the average net room rate fell by 3.8%. Calculated on the basis of the occupancy rate and the average room rate from this survey, the average net room revenue per available room fell nationwide by as much as 8.2%.

Economic impact

The fall in average net room revenue per available room comes at an extremely inopportune moment. Hoteliers are facing a sharp rise in employer costs, energy costs and purchase prices, partly due to inflation. To remain financially sound, room rates should actually be rising. However, market conditions are forcing business owners to lower prices so as not to drive guests away. As a result, they are sacrificing their margins.

Almost three-quarters of hoteliers (74%) see their financial position deteriorating. This relates to liquidity: the extent to which the hotel has sufficient funds available to meet its current payment obligations. As margins have been under pressure for some time, there is also less scope to continue investing in quality, sustainability, staff and maintenance.

With 2,600 hotels and 76,150 employees, the hotel sector is a key economic driver in the Netherlands. The impact of hotel guests extends far beyond the hotel lobby. By spending directly in museums, the hospitality sector, shops, attractions and on public transport, they boost the local economy and enhance the vibrancy of towns and regions.

Ralf Benda, Chair of the KHN, emphasises: “Although, according to Statistics Netherlands (CBS), the month of July attracted many visitors to our country, one swallow does not make a summer. Good weather and extreme heat elsewhere in Europe made the Netherlands an attractive place to stay, but the reality behind the positive figures is worrying. Hotels are selling fewer rooms and, due to lower net room rates, are also earning less per room. Meanwhile, costs continue to rise. The fact that only 46% of hotels report being profitable shows just how serious the situation is. We need to look beyond visitor numbers and turnover figures. Ultimately, what matters is what business owners are left with at the end of the day.”

Border regions and Amsterdam are bearing the brunt

The regional differences show that the pressure on business performance has been more pronounced in some regions since the VAT increase. Hotel occupancy rates in the border regions, where businesses compete with German and Belgian hotels, fell by 6.5% compared with a year earlier. On balance, businesses in the border region have seen their average net room revenue per available room fall by 9.2%. Dutch leisure guests, in particular, appear to be especially sensitive to price rises in this regard.

In Amsterdam, the occupancy rate fell to 83.7% (a decrease of 3.6%), whilst the average revenue per occupied room fell by 6.6%. This has led to a significant decline in the average net room revenue per available room of no less than 10.0%. In Amsterdam, only 32.6% of hotels currently report being profitable. A large majority of 95.3% expect a further decline in the average revenue per occupied room in Q4. Furthermore, the absence of foreign business guests in Amsterdam is cited twice as often as a cause of the deteriorating results compared with the national average.