The Czech hotel market is building on an exceptionally strong year in 2025, marked by a significant increase in transaction volumes and investor interest. According to the hotel team of commercial real estate advisory firm Cushman & Wakefield, a total of 16 hotels were sold in the Czech Republic, representing 2,989 rooms and a total transaction volume of €764 million. Based on available data, this result represents the highest annual transaction volume ever recorded on the Czech hotel market.
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%, and a total of 2,906 rooms sold, up 498% compared with the previous year. The total transaction volume reached €742 million, an increase of 870% year on year. The average price per room exceeded €255,000, representing a 62% 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 dynamic hotel investment markets in the region.
At the same time, branded hotels—both international and domestic—account for only 34% of the city’s total hotel capacity, while the luxury segment represents just 3.5% 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%, nearly five times the European average growth of 2.1%. The main driver of this growth was pricing, with average daily rates rising by 7.2%.
A similar trend was observed in Prague, where average daily rates increased by 6% to €123, and occupancy rose by 2.2 percentage points to nearly 77%. In the luxury hotel segment, rates increased only modestly by 0.7% to €228; however, this was achieved despite a significant 18% increase in supply, while occupancy remained stable at 71%. 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% 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% to over €27 billion. 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% of 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%), alongside Denmark (+660%) and Ireland (+116%).
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 the 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.
Nicolas Horky, Head of Hotel Transactions, CEE & SEE, Cushman & Wakefield, commented: “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 EUR.”
Bořivoj Vokřínek, Partner, Strategic Advisory & Head of Hospitality Research EMEA, commented: “Prague hotels have strong potential for further growth. Accommodation rates remain approximately 19% below the European average and around 30% lower than in cities such as Lisbon or Dublin. Hotels in Prague already achieve occupancy levels above 80% for six months of the year, and the time has come to raise prices and move closer to the leading markets of Western Europe. This is essential to enable hotels to invest adequately in people, service quality, technology and sustainability.”
Outlook for 2026: Sustained Growth and Further Market Acceleration
According to Cushman & Wakefield’s European hospitality team, positive macroeconomic sentiment, improving hotel operating performance and the continued reallocation of capital towards logistics and accommodation-focused real estate segments will remain key growth drivers in 2026. Further increases in transaction volumes and a broader base of active investors are expected. Strong interest in Central Europe and Prague is set to continue, underpinned by growing demand, limited supply risk, low saturation in selected segments, improving liquidity and solid long-term growth potential.
Impact of the Current Crisis in the Middle East
The ongoing crisis in the Middle East is expected to have an impact on visitor arrivals to Prague from this region, as well as from long-haul markets that are connected to it via transfer airports located in affected areas. While travellers from the Middle East represent a rapidly growing segment for Prague’s hotel market and may be significant for certain individual hotels, they currently account for only around 3% of total overnight stays in paid accommodation facilities in Prague.
Moreover, initial available data suggests that European markets, including Prague, may benefit from a partial redirection of demand, as some travellers shift away from affected regions for security reasons and opt for destinations closer to their home markets.
