For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
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Prague is the industrial, political, and financial hub of Czechia (widely known as the Czech Republic in English), serving as a key gateway to Central and Eastern Europe. While primarily a leisure destination, growing business activity and events have enhanced its 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, it 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 its tourism profile, following a strategy similar to that of Amsterdam.
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. By 2023, RevPAR had returned to nominally match 2019 levels, and in 2024 the positive momentum continued with improvements in both occupancy and average rates. Although occupancy remains three to five percentage points below its pre-pandemic peak, the significant increase in average rates has enabled RevPAR to reach pre-pandemic levels in real terms when measured in euro. However, owing to inflationary differences, the RevPAR in Czech Koruna remains approximately 15% below the levels achieved before the pandemic.
Over the past decade, Prague’s hotel inventory has remained relatively stable. Notable recent additions include the debut of the 382-room Cloud One Prague in May 2024; 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, with the most significant upcoming project being a mixed-use complex featuring the 221-room Novotel Prague Geone, slated to open in December 2025 in Prague 7.
After three years of minimal hotel transactions in Prague, 2023 saw four sales, including the 40-room Clara Futura Hotel for €12.6 million and the 161-room Courtyard Prague City as part of a portfolio deal at €238,000 per room. The trend continued in 2024 with four more transactions, notably CPI’s sale of four hotels to Best Hotel Properties for €225 million and IGO Industries’ acquisition of the 175-room Hyatt Andaz Hotel. Activity surged in Q1 2025, with three deals, including the 791-room Hilton Prague bought by IBRC and Avid AM, and Ares Management’s purchase of the 238-room Mama Shelter.
Our HVI analysis indicates a marketwide increase in hotel values of 3.8% in euro prices for Prague. As one of the most impacted cities in Europe in terms of RevPAR decline in 2020, Prague is now on a steady path to recovery. While geopolitical uncertainties, such as potential disruptions in the transatlantic alliance, could pose risks to the market’s recovery, the limited new supply and the healthy post-pandemic growth in visitation offer strong support for a full recovery in the short term.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
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