Wednesday, December 7, 2022
The Czech capital is still one of the most attractive hotel markets in Central and Eastern Europe, compared to Prague’s hotel capacities which have slightly decreased during the Covid-19 pandemic.
Firstly, the Czech capital from 2015 to 2019 offered accommodation in about 800 communal accommodation facilities with a capacity of around 42,000 rooms and 90,000 beds, mainly in the segment of three and four-star hotels.
Apart from this, a remarkable change occurred in 2020, when the capacity of Prague accommodation facilities exceeded 44,000 rooms for the first time since 2012. Whereas, in 2021, more than 1,500 rooms disappeared from the Prague market.
David Nath, Partner – head of hospitality CEE & SEE at Cushman and Wakefield voiced that Prague, with its profound beauty and unparalleled cultural heritage, deserves to be the leading high-end destination in Europe. However, it needs to provide appropriate infrastructure, including luxury hotels that are lacking.
For example, the capacity of luxury hotels in Budapest and Vienna is about 2X and 2.4X times larger than in Prague.
Even with the upcoming openings such as Fairmont, W Hotel, and Almanac X, the capacity of luxury hotels in Prague would remain behind these destinations. At the same time, it arguably should offer more to reach its full potential.
Secondly, with increasing capacity and quality, the Prague hotel rooms as an average price had been rising for a long time before the pandemic.
In 2014, a guest paid an average of CSK 1,980 per room and night, although the price was CZK 2,370 (EUR 93) in 2019. However, the trend of increasing prices did not concern only Prague, but the entire region of Central and Eastern Europe.
Nonetheless, Prague hotels were among those with the highest average occupancy rate. In the pre-crisis year 2019, Prague with almost 80% hotel occupancy was one of the fifth best in Europe, while in 2021 it ranked among the worst due to the pandemic, with an average occupancy rate of 26%.
By the end of 2024, the accommodation and meeting capacity of Prague should expand further with several new hotel facilities. In the first half of 2023, the former Alcron Hotel, newly named Almanac X, would open after reconstruction, offering a capacity of 204 rooms.
In the coming years, we would also see an expansion in the capacities of already established hotels. After expansion, it should offer a total of 117 rooms.
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