According to Cushman & Wakefield, 1,750 rooms should be added to the Prague hotel market in the next three years, mostly luxury hotels will open, according to Cushman & Wakefield.
The construction should help the recovery of the sector after the coronavirus crisis. The return to the level of 2019 is most often expected in 2024, the Czech presidency of the Council of the European Union, which will host many international events, the company added and should benefit domestic tourism.
The Andaz Hotel, part of the international Hyatt hotel chain, will soon open in the center of Prague on Senovážné náměstí. The hotel-residential project The Julius belonging to the group The House of Julius Meinl will open at the same place in the spring. The date of the launch of the W Hotel, the former Hotel Evropa on Wenceslas Square, is still unclear. There is also the Alcron Hotel, which is awaiting extensive renovation and will operate under the name Almanac X Prague from the end of the year. Luxury accommodation will also be offered by the Fairmont Golden Prague Hotel, a former InterContinental hotel that is scheduled to open next year. It is part of the Accor Hotels network.
According to Cushman & Wakefield, not many hotel transactions took place last year, mainly small hotels such as the Blue Orange Business Resort near the Letňany Exhibition Center in Prague or the Ventana Hotel in the Old Town were sold. The sale of the W Hotel was completed. A larger number of transactions is expected this year, but due to the lack of hotels this will not be a significant increase.
“Despite heavy losses due to the hotel pandemic, the owners are not getting rid of it. Their belief that hotels have not lost value, on the contrary, they have the potential for growth, adds to the fact that, among other things, there is talk of limiting short-term leases of the Airbnb type. The Czech presidency of the Council of the EU should also bring more events in tourism,” said David Nath, head of the hotel team for Central and Eastern Europe at Cushman & Wakefield.
As in other industries, hotel real estate is gaining in importance. Some hotel operators are willing to provide more favorable business conditions in such cases. However, there are not many hotels in Prague that meet the highest standards of sustainability. “For example, a survey on Google.com/Travel shows that there are only a very low number of” certified “hotels. A relatively rare example is the two Hilton hotels, the Lindner Hotel Prague Castle and the Mosaic House Design Hotel,” said Bořivoj Vokřínek, head of research in the hotel real estate department for the EMEA region in Cushman & Wakefield.
According to the latest available data from the Czech Statistical Office and the state agency CzechTourism, approximately 715,000 tourists came to hotels in the Czech Republic last November, about 636,000 more year-on-year. The share of foreign guests was 41 percent, most of them from Germany.
Source: Cushman & Wakefield and CTK
