According to Savills, the Czech hotel sector reached a transaction volume of €340 million in Q1 2025, accounting for 23% of the total commercial real estate investment volume in the year’s first quarter. This figure is nearly three times higher than the total hotel investment volume recorded in 2024, which reached €120 million. The sharp increase is primarily attributed to the completion of several major transactions in Q1, including hotels such as Mama Shelter, Hilton, and Ramada Prague City Centre. The acquisition of Four Seasons, to be reflected in Q2 investment volume, represents the most recent significant deal in the market. In the broader context, pan-European hotel investment totalled €21.9 billion in 2024, marking the highest level since 2019 and a notable 47.6% year-on-year increase.
“We are seeing strong investor interest in Czech hotel assets, driven by a rebound in tourism and favourable economic conditions. We expect this appetite to persist throughout the year,” said Vojtěch Wolf, Senior Investment Analyst at Savills.
Savills reports a resurgence in activity across several key European markets, driven primarily by increased portfolio activity, growing appetite for operational asset classes and an improving debt market. Increased transactional activity is expected to continue through 2025, although Savills predicts a greater proportion of this to be from large single asset deals rather than portfolios.
Adi Gokal, Director, Savills Debt Advisory, added: “Lenders have demonstrated a strong appetite for the hotel sector over the past 12 months, driven by robust market fundamentals and resilient performance across key markets. The sector’s strong trading dynamics, underpinned by healthy occupancy rates and RevPAR (revenue per available room) growth, have further reinforced lender confidence. Borrowers are benefiting from a favourable financing environment, with lenders actively competing to deploy capital in this sector. Given these dynamics, we expect continued lender support for the sector, providing a favourable backdrop for hotel owners and investors seeking financing solutions in 2025.”