Wednesday, 9 September 2026
Prague has strengthened its position on Europe’s hotel investment map, moving into joint seventh place among the continent’s most attractive cities for hotel investors as capital continues to target the sector despite economic and geopolitical uncertainty.
According to CBRE’s 2026 European Hotel Investor Intentions Survey, more than 90% of investors plan to maintain or increase their allocations to hotels this year, with 31% expecting to raise investment substantially. Around one-third identified potential returns as the principal reason for committing additional capital.
Prague now shares seventh position with Copenhagen, Rome, Geneva and Athens. The improvement comes during an active period for Czech hotel transactions, supported by growing investor interest in established properties in locations where new supply remains relatively constrained.
“This year’s survey results clearly confirm that investors no longer view hotels merely as a cyclical opportunity, but as a strategic and structural component of their portfolios,” said Jakub Stanislav, Head of Hotel Investment for CEE and Head of Capital Markets at CBRE Czech Republic. He added that Prague’s position was attracting both international investors and regional capital.
Luxury hotels remain the most sought-after category, preferred by 53% of respondents, followed by upper-upscale properties at 44%. Investor preferences are also moving towards internationally recognised operators, with 53% favouring global brands compared with 43% last year. Interest in independent hotels fell from 40% to 24%, while 24% preferred softer affiliations that combine an individual hotel identity with access to an international brand’s distribution network.
Investment strategies are also becoming more active. Value-add opportunities were preferred by 53% of respondents, particularly where existing hotels can be renovated or repositioned. Meanwhile, the proportion favouring higher-risk strategies increased from 15% to 25%.
Investors appear increasingly willing to compete for strong properties. Almost half of respondents expect to acquire hotels without a reduction from the asking price, while 28% indicated that they could pay above the initial valuation for selected opportunities.
Sustainability is becoming part of the investment case rather than simply a reason to avoid older properties. Some 36% of respondents favour upgrading existing hotels, while another 30% would acquire assets with the intention of improving their environmental performance. Only 7% said they would exclude properties with weaker sustainability characteristics altogether.
The Czech market has already recorded several notable hotel transactions in 2026. These include the Prague Marriott Hotel and Millennium Plaza complex, comprising a 416-room hotel alongside office, retail, conference and restaurant space. Other deals include the Augustine in Prague’s Malá Strana district and Vienna House Andel’s Prague, which joined the Cimex portfolio and now operates as OREA Hotel Andel’s Praha.
“The Czech hotel market is going through an exceptionally dynamic period,” Stanislav said, pointing to visitor demand, hotel operating performance and restricted new development in central Prague as factors supporting investor interest.
Prague’s higher position in the European ranking, combined with recent transaction activity, indicates that the Czech hotel market is attracting greater attention from investors seeking established European destinations with opportunities for both income generation and asset repositioning.
