Average room rates for Dutch hotels fell in 2024, despite higher occupancy rates. A major factor in the price declines is the sharp increase in tourist taxes in many cities. With the upcoming VAT increase for accommodation on January 1, 2026, prices are expected to fall further. This is according to the new HOSTA report from Horwath HTL.
The occupancy rate of Dutch hotels rose from 2024% to 74,8% in 75,9. This is more than double the peak of the coronavirus crisis in 2020, but still more than 2 percentage points below the record occupancy of 2019% in 78,2.
The average room rate, on the other hand, fell by over 2024% in 4, from €166 to €159. The price drop occurred primarily in the Amsterdam & Schiphol region, where the tourist tax was increased in 2024. In the rest of the country, the average room rate still rose slightly. Despite the price drop, the average room rate in 2024 will still be approximately 28% above the 2019 level.
Due to the increase in average occupancy rates and the decrease in average room rates, RevPAR (revenue per available hotel room) fell from €124 in 2023 to €120 in 2024, a decrease of over 3%. Total revenue per available hotel room (TRevPAR) decreased from €205 in 2023 to €199 in 2024, a decrease of almost 3%. As a result, the profitability of Dutch hotels has declined again. Expressed as a percentage of revenue, the gross operating profit in 2024 is approximately 36,5%, slightly higher than in 2023. In 2019, this was 41,3%. Due to the lower revenue, the gross profit per available hotel room (GOPPAR) remained the same at €73 per room.
Further price reductions due to VAT increase
Dutch hoteliers anticipate further price decreases in 2025-2026, primarily due to the VAT increase for accommodation that will take effect on January 1, 2026. Nearly 72% of hoteliers anticipate a decrease in occupancy and/or average room rate as a result of the VAT increase. The national occupancy rate is expected to rise to approximately 2025% in 77,3, but will drop to 2026% in 76,8. The average room rate is expected to remain stable at €2025 in 159, but will drop to €2026 in 156.
Some hoteliers are still relatively optimistic. Over 30% expect occupancy to remain the same in 2026, and 18% anticipate an increase. Also, 24% expect room rates to remain the same, and 22% anticipate an increase. On the other hand, 51% expect occupancy to be lower, with 16% expecting a much lower rate. Furthermore, 32% expect a lower room rate, and 23% a much lower rate. If the more pessimistic hoteliers remain the same, the price drop is expected to be significantly greater.
Amsterdam and Schiphol hit twice
Prices are falling fastest in the Amsterdam & Schiphol region. In 2024, the average room rate already fell by 7%, from €205 to €190. However, the occupancy rate still rose, from 77,6% to 78,7%. Amsterdam hoteliers consider the recent increase in tourist tax a major cause of the price drop. The VAT increase is therefore a second setback for Amsterdam hoteliers. It is expected that the occupancy rate could increase by another 2025 percentage points in 2, but that the average room rate will fall by a further 2%. For 2026, a decrease in both the occupancy rate and the average room rate is expected, partly due to the VAT increase. Revenue per hotel room is expected to decline by at least 2026% in 2,5.
Source: Horwath HTL
Horwath's study focuses primarily on larger hotels and chains. Larger hotel cities, particularly Amsterdam, are also overrepresented in the study. Hotels in the border region, often rural areas, are less well represented in this report, even though they are expected to be hit hardest by the upcoming VAT increase. Furthermore, larger hotels in major cities often attract a relatively large segment of business visitors. This demographic can deduct VAT and therefore will not be affected by the upcoming VAT increase.
explanation by Pretwerk.nl