What's Happening?
The Prague hotel market experienced a notable increase in revenue during the year ending August 2025, with RevPAR rising by 7.3% due to higher occupancy rates and increased ADR. Despite a 6.6% rise in expenses, the GOP per available room grew by 6.0%. The market saw seven new hotel openings, adding 769 rooms, primarily in the luxury segment. This expansion contributed to a slight decline in occupancy for luxury hotels, although RevPAR improved. The overall supply increased by 1.1%, with most new properties located in Prague's historic old town.
Why It's Important?
The growth in Prague's hotel market reflects broader trends in the hospitality industry, where increased demand and strategic expansions are driving revenue despite rising operational costs. The focus on luxury and extended-stay accommodations aligns with changing travel preferences, particularly among European tourists. This development highlights the potential for continued investment in the region's hospitality sector, offering opportunities for economic growth and job creation.
What's Next?
The market is expected to continue evolving, with new openings like Crown Palace by Adrez anticipated in Q4 2025. As the industry adapts to shifting consumer preferences, hotels may explore further innovations in service offerings and pricing strategies to maintain competitiveness. Monitoring occupancy trends and cost management will be crucial for sustaining profitability in the face of economic challenges.
