Hotels are attracting growing interest from investors across CEE as strong operating performance and rising travel demand improve the sector’s fundamentals. At the same time, liquidity in prime markets and the emergence of new buyer groups are reshaping how hospitality fits within broader real estate portfolios. In an interview with Property Forum, Jakub Stanislav, Head of Investment Properties and Head of CEE Hotels at CBRE Czech Republic, discusses the outlook for hotel investment in 2026, the role of local capital in major transactions and which markets are likely to attract the most attention from investors.
You’ve recently taken on responsibility for hotels across Central and Eastern Europe while continuing to lead capital markets in the Czech Republic. How do these two roles complement each other when looking at investment trends for 2026?
The hotel sector is a constantly growing real-estate investment class, not only in Europe but across the CEE region as well. In 2025, hotel transactions accounted for approximately 10% of all investment activity across Europe and in some markets, such as the Czech Republic, the share was even higher, exceeding 10%. Due to my historically strong background in hotel advisory, together with a strong uptick in hotel investments, the combination of the two roles allows me to advise clients not only on traditional asset classes, but also to integrate hotels more broader service offering.
From your perspective, what are the key drivers shaping the hotel investment market in CEE in 2026, and how do they differ from broader commercial real estate trends?
The hotel markets across Central and Eastern Europe differ significantly, and each major market—such as Warsaw, Prague, Budapest, or the SEE region—experiences distinct dynamics. At the same time, the hotel investment sector is very specific due to its operational structure and target pool of investors, which are usually quite different from the commercial real estate sector. For example, in 2025, Prague experienced around 65% of all CEE hotel investment activity, nevertheless, Poland remains the market with the highest development pipeline and expected growth. In 2026, the strong leisure and corporate activity will further drive hotel profitability, and the strong fundamentals will further catch investors’ attention.
CBRE has already been involved in some of the first transactions of 2026. What do these early deals tell you about investor sentiment, pricing expectations and liquidity at the start of the year?
For the best-performing hotels, liquidity is higher than in other asset classes. Also, hotel assets trade at a yield discount in comparison to other classes, and many investors believe the gap will eventually narrow down. The recent sale of Andels Hotel Prague in early 2026 illustrates the strong and continuous trend.
Looking back at 2025, the sale of Palladium in Prague stood out as one of the largest real estate transactions in the region. What made this deal possible in that market environment, and what lessons does it offer for large-ticket transactions in 2026?
The sale of Palladium is the showcase of the Czech market, becoming one of the most liquid and resilient in Europe in 2025. Czech investment funds reached a level where large-scale ticket transactions are achievable and accessible. Going into 2026, the strong appetite from Czech investors is expected to trigger many landmark deals, probably not only in the Czech Republic but across the surrounding countries as well.
How do you see capital allocation evolving between hotels and other asset classes this year? Are investors treating hospitality as a core allocation again, or still as a selective, higher-return play?
I would not say hotels as an asset class have reached a core position yet, but I believe the sector is rapidly evolving and could potentially become a key component of investment allocation. The long-term trend will most likely stabilise at 10-15% of all investment activity. We are already seeing a trend where non-traditional hotel investors are now exploring the sector.
In terms of geography, which CEE markets do you expect to attract the most hotel and mixed-use investment interest in 2026, and why?
Usually, Prague, Budapest and Warsaw have been at the forefront, but I think it is not about the location but about the right performing product.
What will be the main factors determining whether 2026 becomes a true breakout year for transaction volumes in CEE?
The liquidity remains very strong, especially in markets such as the Czech Republic, with product availability being the primary trigger.
