Prague has Europe’s fifth highest hotel occupancy

The city is also expanding the number of hotel rooms in the coming years

Prague has the fifth-highest hotel occupancy rate in Europe, and is the continent’s 10th largest hotel market.

Occupancy was 80.1 percent in 2017, with the average daily rate at EUR 88 and revenue per available room (RevPAR) at EUR 70, according to a Cushman & Wakefield report on the hotel industry.

The leader in occupancy was Edinburgh, with 83.7 percent, followed by Dublin, London and Amsterdam.

Prague was the leader for the Central and Eastern Europe region in terms of occupancy. Warsaw was in seventh place, at 78.8 percent, and Budapest took last place in the top 10 with 77.5 percent.

Other CEE cities to make the top 20 were Vienna at 13th place and Bucharest in 16th place.

“The rising demand trend is expected to continue, although some cities are likely to experience a milder growth in the following years, as they become more expensive and/or reach the full capacity during the peak season. Nevertheless, the growing trend is anticipated to continue, driven by new demand sources, particularly from Asia and Middle East,” Bořivoj Vokřínek, partner, strategic advisory & head of hospitality research EMEA at Cushman & Wakefield, said in a press release.

A contributing factor to the occupancy rate in Prague is more tourism from Asia and Middle East, supported by more direct flights and larger capacity planes arriving at Václav Havel Airport Prague.

CzechTourism said that in 2017 more than 10 million foreign tourists arrived in the Czech Republic, a year-on-year increase of 9 percent. Compared to the previous year, Chinese tourists were up 38 percent Russians up 35 percent, and the number of South Koreans rose 28 percent.

Cushman & Wakefield put the number of hotel rooms in Prague at 35,000. The Czech Statistical Office (ČSÚ) includes, apart from hotels, also other types of accommodation facilities such as hostels and campsites. It shows Prague had an overall accommodation capacity of 41,617 rooms with 90,891 beds in a total of 787 accommodation facilities in 2017.

Investment demand hit a record high in core CEE hotel investment markets in 2017, totaling EUR 1.7 billion with 67 transactions, as opposed to 2016 with 1.3 billion in 56 transactions.

The highest volume of transactions was in Austria, with EUR 791 million. The second most active was Poland with 15 transactions at EUR 402 million.

The Czech Republic had a good year with over EUR 235 million in the hotel industry transactions in 2017, a slight drop from the 2016 record with EUR 292 million.

More than 13,000 midscale to luxury rooms are expected to be added to the capital cities of the CEE region within the next three years. In Prague, the W Prague hotel on Wenceslas Square in the former Grand Hotel Europa should be opened by 2020, a new hotel is also planned near the congress and cultural center O2 Universum, near the current O2 Arena.

In the coming years, a five-star hotel is planned for Senovážné náměstí. The Ritz-Carlton Hotel project on Old Town Square, which could be opened by 2022, is under consideration. The Hotel Letná nearly 500 rooms for 1,000 guests and a congress center is under consideration and could open by 2021.

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