Invesco Real Estate completed the sale of the Andaz Amsterdam Prinsengracht in early August — a 122-room five-star hotel housed in a former public library in the Jordaan district. The asset was sold on behalf of its European Hotel Fund (EHF) to a consortium of investors led by First Sponsor Group, a Singaporean investment and property development firm.
The transaction is valued at approximately €93.5 million, or around €766,000 per room. The hotel, which has a gross floor area of 10,618 sqm, also includes 1,374 sqm of office space fully let to independent tenants. First Sponsor holds a 33% stake in the acquisition vehicle.
A disposal in line with Invesco’s rotation strategy
Invesco acquired the property in 2019 as the anchor asset of its European hotel fund, prized for its ability to generate stable, low-risk cash flows. During its period of ownership, the manager carried out several upgrade works, including a redesign of the lobby and the modernisation of the heating and air conditioning systems.
The group states that the sale primarily reflects a need to recycle capital within the fund concerned, rather than a retreat from the hospitality sector. Invesco has continued to reshape its European portfolio in recent months, including with the acquisition of the Radisson Blu Marseille, underlining an active strategy that combines disposals and reinvestment according to market opportunities.
This deal echoes another recent Invesco disposal in Europe: the NH Collection Milan CityLife, also sold by the group’s European hotel fund, following a similar logic of capturing realised performance before reallocating capital.
A rare asset in a supply-constrained market
The acquiring consortium is banking on the strength of the direct lease tying the hotel to Hyatt, the global hotel group, as a key factor underpinning the security of the investment. The investors are also counting on capital appreciation, supported by planning restrictions that severely limit any new hotel development in central Amsterdam.
This scarcity of central supply contrasts with an Amsterdam hotel market that remains active on its outskirts. In the northern part of the city, operator Wilde Aparthotels is preparing to open a 120-unit property in a 31-storey tower aimed at long-stay guests. At Schiphol Airport, Marriott is planning to convert an existing building into a 175-room Fairfield by Marriott.
Amsterdam, a booming hotel market
Several operators already established in the Dutch capital are investing to consolidate their positions. Hilton has closed its 271-room Hilton Amsterdam Apollolaan for a major renovation, due for completion by the end of 2026.
Rebranding offers another route into this constrained market. Mandarin Oriental has completed the rebranding of the Conservatorium Hotel, which recently appointed a new general manager, as the property continues a gradual refurbishment programme launched in recent months. Amsterdam has also recently welcomed Rosewood, whose hotel occupies the historic former Palace of Justice in the canal district, confirming the city’s appeal to international luxury brands.
Accor and Nobu step up market development
Accor is planning two major openings in the city during 2027. The Sofitel Legend The Grand Amsterdam is set to reopen following extensive renovation, while Mama Shelter Amsterdam will open in the north of the city with 150 rooms across two categories, marking the lifestyle brand’s first Dutch address.
The Nobu brand is also strengthening its presence in the Dutch capital with a residential project. Nobu Residences Park Meadows, on the city’s southern ring, will offer 213 freehold units with Nobu-branded services geared towards long-stay guests.
At a glance by The Hospitality Tribune
Invesco Real Estate sells the 122-key Andaz Amsterdam Prinsengracht to a consortium led by First Sponsor Group
Deal value: approximately €93.5m (€766,000 per room)
Hotel operated by Hyatt under a long-term lease running to 2042
First Sponsor Group holds a 33% equity stake in the acquisition vehicle
Property acquired by Invesco in 2019 as EHF’s anchor asset
Central Amsterdam development restrictions support long-term capital appreciation potential
