According to a new survey conducted by Deloitte, Amsterdam remains the most attractive hotel investment destination in Europe. 

The results came as EasyHotel announced two new franchised hotels in The Netherlands, as performance in the country continued to rise and cheaper options outside the nation’s capital were sought by brands, investors and guests. 

Deloitte’s European Hotel Investment Survey saw almost a third (32 percent) of respondents ranking the Dutch capital top. Barcelona (25 percent) and Dublin (25 percent) followed, while last year’s second-place city, London, slipped to fourth.

Why Amsterdam is on the Rise

“It is not surprising to see London slip down the pecking order, with concerns of over-supply, high pricing and uncertainty starting to bite," Andreas Scriven, head of hospitality and leisure, Deloitte, said. "Investors may be questioning how much value they can get out of the city, despite the weak pound and the city being a standout destination for both business and leisure. Interestingly, the majority of hotel investors still remain bullish on the UK capital—around 60 percent expecting to see pricing multiples of at least 16 times in the next 12 months.

“Amsterdam can expect to see further inbound investment. We are also seeing evidence of Barcelona and Madrid being highly sought-after from North American private equity houses, driven by Spain’s economic recovery, favorable yields and asset availability.”

Prices are rising accordingly, with the Het Financieele Dagblad, the country’s daily financial newspaper, reporting that investors were paying an average of €427,000 for a room in the Dutch capital, slightly more than the price of an entire corner house.

For those wishing to invest at a more modest level, EasyHotel, the owner, developer and operator of ‘super budget’ branded hotels, announced a further two hotels under development by its Benelux franchisee.

An 87-guestroom EasyHotel will open at The Hague Scheveningen Beach, one of Holland's most popular seaside resort and a 75-room EasyHotel, will open in Maastricht, a city that welcomes more than3 million tourists each year.

Both hotels are scheduled to open in the second half of 2018 and will expand the group's portfolio in the Netherlands to seven hotels. “The Netherlands is our second-biggest market after the UK and is home to a number of busy and popular tourist and business destinations," Guy Parsons, CEO of EasyHotel, said. "We are delighted to be extending our presence in a market in which we have seen consistent demand from travelers.”

Statistics Netherlands reported that turnover in the hotels and restaurant sector rose by almost 2 percent in the second quarter against the previous quarter, having increased “almost continuously for over four years.” When performance was compared on the year, turnover was up 9.1 percent, its fastest rate in 12 years.

STR reported that occupancy was at its highest level for a second quarter since 2006, up 3.9 percent to 79.5 percent. ADR was up 6.0 percent to €129.19, with RevPAR up 10.1 percent to €102.72. At the market level, Amsterdam reported 10.5 percent growth for the quarter, due primarily to a 7.5 percent lift in ADR to €164.91.

Deloitte’s report found that one-third of hotel investors expected millennials to drive business in the industry. With Amsterdam positioning itself as a liveable, yet business-focused city, it is expected to thrive. At the time of writing, the city had been named as the new location for the European Medicines Agency, the medical arm of the EU, when it relocates from London, post-Brexit.