Outlook

Skewed price-quality ratio due to high demand pressure

The high demand pressure since 2000 has led to a relatively skewed price-quality ratio in quite a lot of Amsterdam hotels. While the quality is poor, these hotel operations have managed to remain profitable due to the rise in room prices. They also maintain good occupancy rates thanks to the steady increase in demand for hotel rooms in the city. Should supply outstrip demand, these low-quality hotels are not expected to remain profitable.

Growth and diversification

• Over the next three years, the Fund size will increase to € 316 million through acquisitions with a focus on:

• • the Dutch G4 cities;

  • long-term lease agreements;

  • > 50% fixed rent;

  • reliable tenants;

  • good mix of private and corporate guests;

  • diversification of the portfolio composition through investments in hotels with different and distinctive concepts focusing on specific target groups;

  • a predictable long-term target total fund return of 7%.

Amsterdam, 20 March 2017

Bouwinvest Real Estate Investment Management B.V.

Dick van Hal, Chairman of the Board of Directors and Statutory Director
Arno van Geet, Managing Director Finance
Allard van Spaandonk, Managing Director Dutch Investments
Stephen Tross, Managing Director International Investments