Amsterdam Hotel Market Spotlight
Gop Rise Due To Increased Revenue & Stagnating Expenses
OVERVIEW
Source: Cushman & Wakefield & HotStats (data are rounded)
OVERVIEW
- The sample of branded full-service hotels in Amsterdam recorded an increase in profit during YE October 2024. The GOP per available room (PAR) increased by 6.5%, due to 4.6% revenue increase and a 3.2% rise in expenses.
- Rooms Revenue recorded an increase of 2.8%, due to a 3.9% growth in occupancy, despite a -0.9% decline in ADR. F&B revenue increased by 9.5%, reaching €63 per occupied room (POR).
- Occupancy rates in 2024 were impacted by the months of August, September and October, each facing growth compared to last year (+17%, +16% and +18%). Meanwhile, the opening of 105 new rooms during YE October 2024, resulted in a 0.3% increase in total supply.
- The primary driver of expense growth was Payroll (+€2.5 PAR), followed by Other Expenses (+€1.9 PAR). While other expenses such as Costs of Sales (COS) and Utilities remained stable.
- Thanks to the constrained expenses, 58% of revenue growth flowed through the bottom line. Resulting in an increase of GOP margin from 40.9% to 41.6%.
COST OF SALES
- Total COS remained unchanged at €21.6 (PAR), with a slight decrease in the Rooms department (-2.3% PAR) offset by an increase in the F&B department (+3.5% PAR).
PAYROLL COSTS
- Total payroll costs registered a slight growth compared to last year (+3.6%), rising from €71 to €73 PAR. This growth partly reflects the 3.75% increase in the minimum wage implemented in January 2024.
- Labour costs in the S&M department increased by €1.54 PAR, followed by a €1.36 PAR increase in the Rooms department.
UTILITIES COSTS
- The utilities costs remained stable throughout the reporting period, maintaining a consistent level of €5.6 PAR for October YE 2024.
OTHER EXPENSES
- Other Expenses recorded a growth of 4.6% year-on-year, increasing from €40 to €42 PAR. The increase was driven by a €0.72 PAR rise in Other Expenses within the S&M department and €0.48 PAR rise in Complimentaries within the Rooms department.
Media Contact
Raph Von Polanen
Head of Valuation, Netherlands [email protected]