More than 90% of European investors plan to maintain or increase their capital allocation to hotel assets this year, according to CBRE's European Hotel Investor Intentions Survey 2026, conducted among more than 70 institutional and private investors between February and March 2026. Around 31% expect a significant increase, with favourable total return prospects cited as the primary driver by a third of respondents. Prague has risen in the rankings to share 7th place among Europe's most attractive cities for hotel investment, alongside Copenhagen, Rome, Geneva and Athens.
"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. Hotels are able to respond effectively to inflation and to changing market conditions. Prague's ranking is excellent news for the domestic market," said Jakub Stanislav, Head of Hotel Investment for the CEE region and Head of Capital Markets at CBRE in the Czech Republic.
The luxury five-star segment remains the most sought-after hotel category, rated most attractive by 53% of investors, followed by the upper upscale segment at 44%. A notable shift in brand preference has also emerged: investor appetite for globally established brands rose from 43% to 53% year on year, while interest in independent hotels fell from 40% to 24%. Soft brand affiliations, which combine the distribution power of large chains with an individual hotel's distinctive character, gained ground at 24%. "Whereas investors previously sought flexibility above all in independent hotels, today they see a strong international brand as the key to higher asset value appreciation and stable returns," explained Stanislav.
Almost half of investors (48%) do not expect any discount to the asking price when acquiring assets, and around 28% are prepared to bid above the original valuation. Value-add strategies focused on repositioning and refurbishment remain most popular at 53%, while interest in higher-risk strategies targeting strong returns has grown from 15% to 25%. On sustainability, 36% of investors favour retrofitting older properties to improve energy efficiency, and a further 30% invest with the aim of improving ESG parameters, with green certifications such as Green Key, BREEAM and LEED becoming a common standard in the segment.
Transaction activity in the Czech Republic underlines this investor confidence. The most significant deal was the sale of the Prague Marriott Hotel and Millennium Plaza complex, brokered by CBRE, comprising 416 hotel rooms alongside office, retail, conference and restaurant space. The transaction is described as the largest single-hotel-asset deal in Central and Eastern Europe in 2026. Other notable transactions included the sale of the five-star Augustine hotel in Malá Strana, acquired by Kempinski Hotels, and the sale of the Vienna House Andel's Prague, also advised on by CBRE, which passed to the Cimex investment group and now operates as OREA Hotel Andel's Praha.
"The Czech hotel market is going through an exceptionally dynamic period. The combination of rising visitor numbers, strong operating results and limited new development in central Prague is creating excellent conditions for further capital appreciation. Even by European standards, Prague is proving that it belongs among the most lucrative and most stable hotel markets," concluded Stanislav.
