Prague will see new hotel conversions

CZECH REPUBLIC Domestic operators are gaining in competitiveness, Czech chain Pytloun Hotels will open on Wenceslas Square. The Czech hospitality market has been achieving above-average performance rates thanks to a steadily growing number of tourists. This has had a positive effect on hospitality properties whose yields ranging between 6 proc. and 7 proc. are noticeably higher than the yields in other commercial sectors, specifically retail, office and industrial. They are also attractive with rents guaranteed for a long time. As a result, converting office space into hospitality facilities is becoming a frequent choice among both domestic and international investors. Czech operators can compete with foreign ones quite capably and tend to be the preferred choice for hotel owners. Just about 14 proc. of the local market operators are international brands, according to Cushman & Wakefield’s report.