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Prague is the industrial, political and financial hub of Czechia, serving as a key gateway to Central and Eastern Europe. While primarily a leisure destination, growing business activity and events have enhanced Prague’s international profile. Popular in spring, early summer and autumn, it thrives as a short-break destination and a key stop on the Vienna-Budapest-Prague route. The city also attracts weekend visitors year-round, particularly at Christmas. Despite its rich history and culture, Prague lacks the luxury shopping and fine dining that appeal to high-end travellers. Once favoured for stag parties on account of its affordable hotels and budget airlines, government initiatives are now aimed at shifting Prague’s tourism profile, following a strategy similar to that of Amsterdam. On the political front, Czechia has experienced increasing political fragmentation in recent years, with a growing divide between pro-EU institutional positions and more populist and eurosceptic currents, contributing to a more polarised domestic environment.

Tourism in Prague is predominantly fuelled by international visitors, who typically represent around 85% of total arrivals. The city’s main source markets include Germany, the USA and the UK, with Chinese tourism experiencing the most significant growth in recent years. In addition to a robust leisure market, Prague also attracts a diverse mix of demand from commercial and MICE travellers. This growing influx of visitors, which began prior to the pandemic, contributed to strong hotel performance, with occupancy levels nearing 80%, reflecting a healthy and well-balanced demand mix.

The recovery following the COVID-19 pandemic was gradual, gaining real traction toward the end of 2022. Supported by several years of growth in both occupancy and average rates, RevPAR had, by 2025, nearly returned to its 2019 level in real terms when measured in euro. However, when measured in local currency, exchange rate movements have partially offset this recovery, resulting in a more subdued improvement relative to the euro-denominated performance.

Over the past decade, Prague’s hotel inventory has remained relatively stable, with selective additions and repositioning rather than large-scale expansion. Notable recent additions include the 76-room Sir Prague, which opened in March 2025, followed a month later by the reopening of the 320-room Fairmont Golden Prague, formerly known as the InterContinental Prague, which had closed in the spring of 2020 and underwent a complete renovation. Looking ahead, the development pipeline remains limited, adding approximately 400 rooms to the existing supply. Upcoming projects include the 149-room Puro Hotel, scheduled for the end of 2026 and the return of the InterContinental Prague with a 137-room hotel planned for 2029 following the renovation of a building dating back to 1839.

After three years of minimal hotel transactions in Prague following the pandemic, transaction activity picked up in 2023. Momentum has been maintained since, with four additional transactions in 2024 and a further six deals in 2025. Notable transactions include the sale of the 791-room Hilton Prague in February for approximately €270 million (€340,000 per key) and the sale of the 161-room Four Seasons Prague in May for €102.2 million (€635,000 per key).

Our HVI analysis indicates a marketwide increase in hotel values of 1.8% in euro prices for Prague. As one of the most impacted cities in Europe in terms of RevPAR decline in 2020, Prague has broadly recovered in terms of RevPAR, despite lower occupancy levels recorded compared to pre-pandemic highs. While geopolitical uncertainties could pose risks to the market’s short- to medium-term performance, the limited new supply and the healthy post-pandemic growth in visitation offer strong support for sustained recovery.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

ADR Change
Market Demand Change
Hotel Occupancy Increase/Decrease
RevPAR Change
Market Supply Growth

Change In Value For Market: (€Euro)

Prague RevPAR Change (€Euro)

Prague RevPAR (€Euro)

For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 7725781037 (m)
	Maxime Gauthier Senior Associate [email protected] +44 0 7593572865 (m)