Dirk Bakker, Head of EMEA Hotels: “Investors are regularly requiring the latest information on cities where they will receive high returns, which in a politically and economically uncertain world, is often difficult to predict. Our index provides us with something more than anecdotal evidence through which to advise our clients. 

Amsterdam scored high on the hotel performance with an occupancy rate of 78% and an average daily rate of 136 euros. This is one of the best scores of all cities we analyzed and underscores the growing interest in the city of travelers as well as investors."

Paris shows high exit yields and hotel investment volume between 2007 and 2016. The city welcomed more than 15 million international tourists in 2015 and witnessed average hotel occupancy levels of over 77% from 2012-2016. This is a very high score concidering the terrorist attacks in 2015. Also the results in 2016 and early 2017 show numbers that are better than before the attacks. It seems the hotels have recovered.

The Colliers index uses four components which score up to 400. It concerns demand (population, GDP per capita, total workforce, commuting workforce), hotel performance (tourist arrivals, room occupancy, Average Daily Rate, Revenue per Available Room), development costs (land site prices, building costs) and sales (exit yield, investment volume). The consolidated score shows which markets are hot in terms of the acquisition of existing hotels and the development of new ones.

"With the Hotel Investment Attractiveness Index, we were able to create a unique analysis of a very dynamic market. By combining the twelve underlying variables, we can generate far more of an insight into the current hotel industry and even predict what could lie ahead."

Details from the report

  • The story for the top two cities, London and Paris, is very similar. Paris pips London to the top by virtue of having slightly lower development costs. Low development costs is one of the areas in which Barcelona excels, increasing the overall attractiveness of the city ahead of Amsterdam sitting in fourth place. 
  • Istanbul has been ranked relatively low at number 17 due to low occupancy rates, leading to lower returns on investment.
  • Zürich is the most interesting city to watch out for in the future. It looks like there's an under-supply of quality hotel stock. If demand for the city continues to increase, it may become one of the most popular cities for new development and investment. 

Ranking Amsterdam
- overall: 4 
- demand: 8
- hotel performance: 5
- development costs: 10
- sales: 10

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