This is evidenced by Horwath HTL’s new Hosta Report, which will be presented on Tuesday 13 September during the Horwath HTL Hotel 2023 event.
Hotel market 2022: strong recovery
The occupancy rate of Dutch hotels rose to 65.8% in 2022. This is more than 27 percentage points above the 2021 level (38.6%), but still 12 percentage points below the record level of 2019 (78.2%).
The average room rate rose sharply in 2022. Due to the Corona crisis, the average room rate decreased from 120 euros in 2019 to 88 euros in 2021. However, in 2022 the average room rate of 134 was achieved. euro. This represents an increase of 52% compared to 2020, and an increase of 12% compared to 2019.
Due to the recovery in average occupancy rates and the increase in average room rates, RevPAR increased from €35 to €88, an increase of more than 150%. As the hotel restaurant, rooms and other facilities were used more frequently in 2022, the total sales volume increased faster. Total revenue per available room (TRevPAR) increased from €64 in 2021 to €153 in 2022, an increase of almost 40%. Compared to 2019, total trading volume increased by 5%.
Hotel operating costs in the Netherlands have risen sharply since the Corona crisis. National inflation rose from 1.3% in 2020 to 2.7% in 2021 and 10.0% in 2022. The average price increase since 2019 is more than 14%. For hotels in the Netherlands, the average cost increase was even higher. Staff costs and energy costs in particular rose sharply between 2019 and 2022.
Therefore the profitability of Dutch hotels remains under pressure. Expressed as a percentage of total sales, the operating result in 2022 is approximately 31.5%. In 2019, this was still 41.3%. The operating result per available hotel room was €48 in 2022. Compared to 2021, profit per hotel room almost quadrupled, but compared to 2019, profit decreased by approximately 20%.
Hotel market 2023: continued recovery
The results for the first half of 2023 indicate that the recovery is continuing, both for occupancy rates and average room rates. Based on current results, hoteliers expect the national occupancy rate to reach approximately 72% in 2023.
The average room rate is expected to be around €146 this year. This could result in a revenue per available room of €105; About 12% above 2019 levels. Since this is still below headline inflation from 2019, the profit margin is not expected to recover yet.
The hotel market in Amsterdam and Schiphol is performing above expectations
Hotels in the Amsterdam and Schiphol region were the most affected by the Corona crisis in 2020, and were able to show only a minimal recovery in 2021. However, in 2022, the hotel market in the capital region performed above expectations. The occupancy rate nearly doubled, from 31.4% in 2021 to 62.3% in 2022. This is still 23 percentage points below the 2019 level (85.3%).
The average room rate in Amsterdam and Schiphol rose very sharply, from €95 to €170. This means that the average room rate is about 12.6% higher than the 2019 level.
Due to the rise in room prices, the available room turnover increased by more than 250%, from €30 to €106. However, this is still approximately 18% below the 2019 level (€129).
Current results and forecasts for Amsterdam and Schiphol point to further recovery. If this continues, Amsterdam hotels will close 2023 with an occupancy rate of around 72% and an average room rate of €189. Thus, revenue per available room could reach €136, which is slightly higher than the 2019 level.
The Hosta Report 2023 is a publication by consulting firm Horwath HTL. The report shows hotel industry results in the Netherlands, Belgium and Luxembourg. More than 400 three-, four- and five-star hotels in the Benelux countries are participating in the exhibition Research every year.
Table 1. 2019-2022, 2023 projections