The Czech hotel market continues to demonstrate resilience and growing investor interest, with Prague remaining a key destination for hospitality investment across Central and Eastern Europe. This year, Prague recorded the highest year-on-year growth in investor interest and ranks among the most attractive hotel investment markets in Europe.
Prague’s hotel market demonstrated consistent performance growth in the first half of 2025, with year-to-date RevPAR reaching €82 as of June, an increase of 4.7% compared to the same period in 2024, and a 25.5% rise over 2019 levels.
However, there is still room for growth, as Prague’s RevPAR remains 16% below the European average. The Czech capital ranks 20th among key urban markets in Europe, behind cities such as Berlin, Vienna, Copenhagen, Brussels, and Lisbon. This is primarily due to low ADR, which grew by 3% in H1 2025, reaching €116, but still 20% below the European average.
Occupancy levels in Prague surpassed 82% in June 2025, with a 71% average for H1, indicating strong demand. With constrained supply, the market is expected to see healthy ADR gains in H2 2025 and further into 2026.
Hotel supply is evolving, led by the luxury segment, which expanded by 25.0% in H1 2025. Despite this growth, luxury remains the smallest segment, accounting for just 3.0% of the city’s total inventory. Overall supply growth is expected to remain constrained, increasing by only 1.8% by year-end 2025.
According to Bořivoj Vokřínek, Partner, Strategic Advisory & Head of Hospitality Research EMEA: “There is no long-term reason why Prague should be cheaper than Berlin or Vienna or Brussels. The city is one of the most attractive destinations in Europe and has great potential but needs to attract more high-end clientele. The additions of new luxury and lifestyle hotels should help but there is still room for more.”
Major Deals Shaping the Market
According to the latest CEE MarketBeat Hospitality H1 2025 report by real estate consultancy Cushman & Wakefield, the Czech Republic saw several high-profile transactions in the first half of the year, including the acquisition of Hilton Prague and Four Seasons Hotel Prague by PPF Real Estate, in partnership with Michal Strnad’s Noble Hospitality in the second case, highlighting strong domestic investor activity. These deals contributed significantly to the total volume of hotel investments in the region.
Hotel transaction volumes in Prague reached €488 million in the first half of 2025, which is more than 24 times higher than in the same period last year. This placed Prague as the 6th most active hotel investment market in Europe—surpassing Berlin (€411M) and Dublin (€305M), and coming just behind Paris (€504M). As transactions in Prague accounted for 97% of the Czech Republic’s total hotel investment volume, the country reached a historic high of €502 million, positioning it 9th among European countries.
This is further supported by the latest edition of the Hotel Investor Compass, where Prague ranked 14th among the most attractive hotel investment markets in Europe, just behind cities such as Dublin, Edinburgh, and Vienna. Even more significantly, Prague recorded the highest year-on-year growth in investor interest – up 14% compared to 2024.
The Czech market was dominated by private buyers, who accounted for 78% of the total transaction volume, while institutional investors represented 22%. Notably, public sector activity was absent in H1 2025.
Alina Cazachevici, Head of Valuation & Advisory, Hospitality & Alternatives CEE & SEE: “The Prague hotel market continues a positive trajectory in both performance and investment appeal. Hospitality assets in Prague remain highly sought-after. However, limited availability is constraining transaction activity. Given the modest pace of the new supply, we anticipate that the performance of existing hotels will continue to improve on average.”
Key transactions in H1 2025 included:
- Hilton Prague (791 rooms) – acquired by PPF Real Estate from IBRC (Ireland)
- Four Seasons Hotel Prague (157 rooms) – acquired by PPF Real Estate & Noble Hospitality from Northwood Investors (USA)
- Penta Hotel Prague (227 rooms) – acquired by Jan Hotels from Aroundtown (Germany)
- Mama Shelter Prague (238 rooms) – part of a portfolio deal between Ares Management (UK) and Fidera Vecta Ltd (UK)
The Prague hotel market remains attractive to international capital, however, but faces a shortage of properties available for sale and strong competition from domestic players.
According to Nicolas Horky, Partner, Head of Hotel Transactions CEE & SEE: “We expect further high-quality assets to transact in the coming quarters, which would support this increasing liquidity but may also put pressure on the current yield levels.”
The outlook for the Czech hotel market remains positive, with continued demand for high-quality assets in prime locations and growing interest from both domestic and international investors.
