Czech Republic Hotel transactions boom

The highest level of activity was recorded in Prague, where 2025 delivered an exceptionally strong investment performance for the hotel market, both in terms of the number of transactions and total volume. Prague saw 13 hotel transactions, representing a year-on-year increase of 152 pct, and a total of 2,906 rooms sold, up 498 pct compared with the previous year. The total transaction volume reached EUR 742 million, an increase of 870 pct year on year. The average price per room exceeded EUR 255,000, representing a 62 pct increase year-on-year. This was driven primarily by the sale of premium hotels such as Four Seasons Prague and Hilton Prague, where the transaction prices per room were significantly above the market average. This combination of higher transaction volumes and rising prices confirms Prague’s position as one of the most active hotel investment markets in the region.

At the same time, branded hotels—both international and domestic—account for only 34 pct of the city’s total hotel capacity, while the luxury segment represents just 3.5 pct of total room supply. This highlights continued opportunities for the development of high-quality, internationally competitive hotel products.

Further growth of the Prague hotel market is supported by a gradual shift in how the city is perceived by visitors and investors alike. While Prague has not historically been viewed as a leading luxury destination, the entry and return of international brands in the upper-upscale and luxury segments—including Andaz Prague, W Prague and Fairmont Golden Prague—are steadily strengthening its position in the premium category. This shift is supported by a stronger focus on product quality, marketing strategies targeting more sophisticated demand, and the ongoing revitalisation of key public spaces in the city centre, such as the extensive redevelopment of Wenceslas Square. These factors are translating into higher room rates and improved overall hotel performance, attracting both domestic and international investors.

Improving Hotel Performance

According to STR data, average revenue per available room (RevPAR) in Czech hotels increased by 9.7 pct, nearly five times the European average growth of 2.1 pct. The main driver of this growth was pricing, with average daily rates rising by 7.2 pct.

A similar trend was observed in Prague, where average daily rates increased by 6 pct to EUR 123 and occupancy rose by 2.2 percentage points to nearly 77 pct. In the luxury hotel segment, rates increased only modestly by 0.7 pct to EUR 228; however, this was achieved despite a significant 18 pct increase in supply, while occupancy remained stable at 71 pct. This demonstrates that new luxury hotels are capable of attracting new high-spending demand to the market.

Overall growth in both room rates and occupancy in Prague had a positive impact on hotel profitability in 2025. According to HotStats data, the average gross operating profit per room in Prague hotels increased by 5.2 pct compared with 2024. This is a very positive result, showing that hotels are able to withstand rising costs, with particularly strong pressure coming from labour expenses.

European Context: A Strong Investor Comeback

The European hotel investment market rebounded strongly in 2025, with transaction volumes increasing by 23 pct to over EUR 27 bln. This represents the strongest result since the pre-pandemic year of 2019 and confirms the renewed attractiveness of hotel assets among investors. These transactions included more than 1,050 hotels and 133,400 rooms.

Activity was supported by improving hotel operating performance across most European markets, more favourable financing conditions, and a continued shift by investors towards logistics and hotel assets (“sheds and beds”). Alongside traditionally most active markets such as the UK, Spain and France—which together accounted for 49 pctof total volume—Central and Eastern European countries also recorded above-average growth. The Czech Republic ranked among the fastest-growing markets in year-on-year terms (+425 pct), alongside Denmark (+660 pct) and Ireland (+116 pct).

This European backdrop provides a positive framework for the continued development of the Czech hotel market in 2026.

Hotel Investor Compass 2026: CEE in Investors’ Focus

According to the Cushman & Wakefield 'Hotel Investor Compass 2026' survey, which tracks investor sentiment towards hotel assets across Europe, at least half of surveyed investors are prepared to actively invest in Central and Eastern Europe. This is particularly true for value-add investors, where interest levels are up to five times higher.

The study also shows that Prague has ranked among the top 15 most attractive European cities for hotel investment, ahead of Vienna, Zurich and Budapest. Key drivers include increasing market liquidity, expectations of rising annual returns and strong potential for capital appreciation. Prague’s growing attractiveness is further supported by the positive perception of the local hotel market among investors, a lower risk of excessive supply growth, reduced performance volatility, and the overall economic and political stability of the market.

The market is entering 2026 with a strong sense of optimism. Liquidity is improving, investors have greater access to capital, and we are seeing a gradual easing of financing conditions. In the Czech Republic in particular, the growing strength of domestic investors is supporting market activity and enhancing its long-term outlook. All of this is reflected in continued investment activity; with several ongoing transactions whose total value is approaching half a billion Euros.
Nicolas Horky, head of hotel transactions, CEE & SEE, Cushman & Wakefield