Hotel occupancy and rates have been slower to recover to pre-pandemic levels in the Netherlands than in other European countries, but a more active events calendar in 2021 is having a positive effect on future bookings, according to data from STR, Costar's hospitality analytics firm.
Thomas Emanuel, a director in STR's London branch, said hotel performance in the Netherlands has followed familiar patterns, with declines as a result of COVID-19 lockdowns and travel restrictions and surges timed with the lifting of those restrictions.
As of Jan. 16, hotel occupancy across the country was at 26% of the level achieved in 2019 — a low point for Europe.
The differentiation is greater in regard to hotel average daily rate.
"ADR has not been impacted as much as occupancy. The Netherlands does remain something of a laggard, however," Emanuel said. "Several European countries — including Ireland, Italy, Poland and Spain — have all recently seen ADR at higher levels than 2019. But the Netherlands is just currently at 17% of those 2019 levels, so very much an anomaly when looking across the continent."
In a trend replicated across the globe, Netherlands hotel performance has been at a premium on weekends, which is a demonstration of the strength of leisure travel demand in the recovery.
"We see weekend rate peaks, which is interesting because in normal times, the reverse would be true, driven by corporate business," Emanuel said. "It's clear Amsterdam has suffered more than most. The city usually has a unique mix of demand drivers, but international demand, corporate demand and group demand have been lacking and that is clearly seen in the data."
Hotels in secondary markets such as Maastricht and Den Haag have performed better due to a greater reliance on domestic demand.
"The future brings more positive news" for Dutch hoteliers, Emanuel said.
Future bookings, or "business on the books," for 2022 are outpacing 2021, largely as a result of a more robust events calendar.
"It is most people's expectation that they will be able to attend events this year in a way that they have not done since pre-COVID," Emanuel said.
Events that are spurring a hotel business boom include Stille Omgang — or "Silent Walk" — a Catholic festival in Amsterdam in March; and the International Bridge Conference, also in Amsterdam, in September.
Another positive for hoteliers with existing properties in the Netherlands is that the hotel construction pipeline is "not aggressive," Emanuel said.
Among European countries, the Netherlands ranks 14th in terms of hotels in construction, with just under 9,000 hotel rooms to be added this year. Less new competition for business will be a boon to hoteliers as the market recovers, Emanuel said.
The new hotel supply will most impact Amsterdam, where just under 1,800 hotel rooms are projected to open, despite restrictions on new hotel development.
For more on hotel performance in the Netherlands, watch Emanuel's video analysis above.