Growth of visitors in Amsterdam until 2020
Travel and tourism activity in Amsterdam is continuing to increase. This increase will be a result of the increase of international visitors, which make up more than three quarters of total visits to the city. Growth is also foreseen through domestic visitors.
Until 2020, the forecast for the Amsterdam hotel market is positive, with the total number of stay-overs expected to increase by 3.0%, in line with the growth in hotel room supply of 2.6% year-to-year until 2020.
Skewed price-quality ratio due to high demand pressure
The high demand pressure since 2000 has led to a relatively skewed price-quality ratio in quite a lot of hotels in Amsterdam. While the quality is poor, these hotel operations have managed to remain profitable due to the rise in room prices. They also maintain good occupancy rates thanks to the steady increase in demand for hotel rooms in the city. Should supply outstrip demand, these low-quality hotels are not expected to remain profitable.
Growth and diversification
The target portfolio for year-end 2018 is € 300 million. The Fund will realise this growth through acquisitions. Several diversification guidelines will be part of the growth strategy of the Fund during the coming years to further spread risks, such as:
A focus on strong and international brands/ operators
A majority of lease agreements with fixed rental income
Limited investments outside the four largest Dutch cities (Amsterdam, Rotterdam, The Hague and Utrecht)
Amsterdam, the Netherlands, 14 March 2016
Bouwinvest Real Estate Investment Management B.V.
Dick van Hal, Chairman of the Board of Directors and Statutory Director
Arno van Geet, Managing Director Finance
Allard van Spaandonk, Managing Director Dutch Investments
Stephen Tross, Managing Director International Investments