The prices being paid for hotel premises in Amsterdam have exploded in the past year, with costs per room soaring by 150%, the Financieele Dagblad said on Friday.

Investors are paying an average of €427,000 for a room in the Dutch capital, slightly more than the price of an entire corner house. The Chinese conglomerate Anbang recently spent €350m on the 557-room Amsterdam DoubleTree Hilton.

Prices for hotels are rising elsewhere in the country as well. The average room price is now 70% higher, at €225,000, according to the latest figures provided by property adviser Colliers.

Due to the sharp rise in the number of tourists, hotel rooms are full more frequently and hoteliers can ask more for an overnight stay. In the Amsterdam/Schiphol area, the average room price rose by more than 5% to €131, according to consultancy Horwath HTL.

‘Tremendous,’ said Dirk Bakker, CEO of Colliers Nederland, referring to the prices investors are paying in Amsterdam. The prices now are close to those in London.

Until recently, investors regarded hotels as a relatively risky property segment with justified high returns. But risks regarding hotel investments have fallen as tourism grows, Bakker said. ‘People are willingly paying more money for experience instead of goods.’

The increase in the number of hotel rooms cannot keep up with the rise in tourism. The number of tourists in Amsterdam went up by more than 6% this year while the increase in the growth of the number of rooms fell back. The city declared a halt to construction of central hotels this year in an effort to divert tourists elsewhere.