The hotel market in Prague and the entire Central and Eastern European region is experiencing a recovery exceeding initial expert expectations, according to the CBRE analysis. International overnight stays in Prague are at 95% of their 2019 level.
This growth is fueled by strong tourism development, driven by renewed domestic demand, the return of international visitors and changing traveller preferences. Prague maintains its position as the most visited city in the region, while investor confidence is strengthening and the hotel market is rapidly approaching pre-pandemic levels.
“In the first quarter of this year, Europe recorded a 2% year-on-year increase in international tourist arrivals, with the Central and Eastern European region achieving even better results with 8% growth,” describes Jakub Stanislav, Head of Investment at CBRE.
The return of tourists to the CEE and SEE regions varies by country of origin. In any case, arrivals from Western Europe have largely recovered. Dynamic growth has also been observed among American tourists, who are returning to popular destinations, such as Prague, following the resumption of long-distance travel. An interesting trend is the increasing interest of visitors from the Persian Gulf countries, who are focusing on luxury and wellness stays.
Data for 2024 show that the greatest recovery compared to 2019 occurred among travellers from the United States (+18%), Austria (+17%) and Spain (+14%). On the contrary, the opposite trend is evident among visitors from Northeast Asia, who recorded a decrease of 43% and the Asia-Pacific region (-33%). Average occupancy increased by 6 percentage points year-on-year last year, and this year it remains at high levels, ranging from 76% in Warsaw to 82% in Prague.
The Central, Eastern and Southeastern Europe region has more than 450,000 hotel rooms, with the share of the premium and luxury segment constantly growing. Four-star hotels today represent 45 to 50% of the total supply, while five-star hotels make up around 10 to 15%, concentrated mainly in capital cities and resort destinations.
“The CEE and SEE regions are witnessing a steady expansion in both the number and quality of hotel rooms, with a notable emphasis on four-star and five-star projects. Currently, there are 300 hotels in various stages of preparation,” describes Stanislav.
Since 2023, CBRE has been observing a return of investment activity in the hotel sector. "In the first quarter of 2025, hotel transactions totalling €417 million were completed, which represents 63% of the volume for the whole of last year. The sale of the Hilton Prague Hotel played a major role in this, which we managed to carry out as the largest transaction in the region in history," adds Stanislav.
