Netherlands lags behind rest of Europe

Investments in hotel properties

The Dutch hotel real estate market is showing a cautious recovery and investors are showing renewed interest. Both international and domestic players see opportunities in this sector, despite fiscal challenges and market dynamics affecting growth. In this article, we analyse the main trends, supported by insights from the report 'Investment market developments in 2025' by internationally operating real estate advisor Colliers and research by Ruben Schuuring, Associate Director Hotel Investment and Pascale Schellekens, Market Intelligence Analyst at real estate and investment advisor Savills in the Netherlands.

After a difficult period, the Dutch hotel market experienced a strong rebound in 2024. According to the Colliers report, the transaction volume for hotel properties rose to €692 million, an impressive growth of 138% compared to 2023. Amsterdam played a major role in this recovery, with an increase of 285% in the third quarter of 2024 compared to the same quarter a year earlier.

 A major transaction was Leonardo's acquisition of the Eden portfolio, consisting of 12 hotels. In addition, the Weena House, containing the Holiday Inn Express and offices, was sold for almost 27 million euro. 

As in the previous year, hotel operators were the main buyers. In both 2024 and 2023, they were responsible for half of the transactions. Most transactions took place in the five major cities. The number of transactions rose from eight in 2023 to 12 in 2024, while transactions outside these cities fell from 15 to seven in the same period.

Jan Hein Simons of Colliers emphasises the attractiveness of hotels as investments: "Hotels are operationally stable and benefit from the growing tourist flow. Foreign investors are therefore showing more interest in Dutch hotel portfolios." Nevertheless, the Netherlands lags behind other European countries, where the dynamics are even stronger.

International investors return

Global interest in hotel real estate remains strong. According to Real Capital Analytics, international buyers accounted for 20% of all global commercial real estate transactions in 2024, rising to 40% in Europe. The Netherlands benefits from this trend, partly due to the relative value stability and inflation hedge that hotels offer.

According to Ruben Schuuring, Associate Director Hotel Investment at Savills, both institutional and private equity investors are mainly focusing on high-quality 'trophy assets' and larger hotel portfolios. "The Netherlands is seen as a mature market with long-term growth potential. This attracts investors who want to create value and seek stability."

Large transactions still rare in the Netherlands

While in the UK the acquisition of large hotel portfolios is becoming more common, the Netherlands lags behind. The takeover of the Zien Group by Fattal Hotel Group in 2024 was an exception to the rule. In the UK, hotel portfolios worth €6 billion were sold, while the Netherlands realised only a fraction of this.

Growing subsectors: Serviced Apartments and Transformations

Serviced apartments and aparthotels are gaining popularity in the Netherlands. Cities such as Amsterdam, Rotterdam, The Hague and Utrecht are attractive markets for this type of accommodation, mainly due to demand from business travellers and expats for flexible living solutions.

Another notable trend is the transformation of vacant office buildings into hotels. This is now widely practiced in the UK, while the Netherlands has had experience with it for some time. Since 2016, dozens of office buildings in the Netherlands have been transformed into hotels and co-living concepts. However, regulations play an important role here; in the Netherlands, permit procedures are more complex than in the UK.

Future prospects and challenges

Although the outlook is positive, it remains important to consider rising staff costs, inflation and tax developments. The high transfer tax and the possible increase in the VAT rate on hotel stays (from 9% to 21%) may deter investors.

Nevertheless, Schuuring sees opportunities: "With the right strategy and focus on innovative concepts, hotels can remain an attractive and stable investment segment. We expect more asset deals than portfolio deals in 2025." Simons adds: "It is crucial that the investment climate remains stable. The international interest is there, now the framework conditions in the Netherlands must facilitate this."

Right strategy

The hotel real estate market in the Netherlands is facing a year of opportunities and challenges. International investors are returning, serviced apartments and transformations offer new opportunities, but fiscal uncertainties remain a drag on the market. For investors with the right strategy, hotel real estate remains a stable and attractive investment.

Although the wider property market is also showing positive signs, with an expected total investment size of €13.3 billion in 2025, the hotel sector remains a unique niche with specific opportunities and challenges. With a favourable investment climate and smart strategic choices, this sector can continue to grow in the coming years.