PPF Group, the leading Czech investment holding, has finalized the acquisition of one of Prague’s most prestigious luxury hotels, strengthening its presence in the high-end hospitality sector. The deal highlights the group’s strategic focus on tourism-related real estate amid rising demand from international travelers.
Deal Highlights
The acquired property is a five-star hotel located in Prague 1, near the iconic Old Town Square.
Key details:
- Purchase price: approximately €68 million
- Room count: 90+ luxury suites, including presidential apartments
- Features: panoramic rooftop restaurant, spa, wine cellar, conference spaces
- Underground parking
- Historic building with 19th-century architecture
Ownership was transferred to PPF Real Estate, a subsidiary of the holding.
Prague’s Hospitality Market in 2025
According to the Czech Statistical Office:
- Total tourist arrivals in 2024: 8.9 million
- Share of foreign tourists: 67%
- Average occupancy rate in 5-star hotels: 74%
- Average nightly rate: €260–€410
The luxury segment remains resilient, driven by visitors from Germany, the US, Israel, and Gulf countries.
Strategic Role of the Hotel in PPF’s Portfolio
Through PPF Real Estate Holding, PPF manages a broad portfolio of assets in the Czech Republic, the UK, the Netherlands, and Slovakia.
Acquisition goals:
- Diversify its asset base
- Expand presence in central Prague
- Secure stable, long-term income
- Invest in boutique, high-margin assets
Projected Profitability
Market estimates suggest:
- Room revenue: approx. €6.3 million annually
- Additional revenue (dining, events, spa): €1.1 million
- Expected gross return: 10–12% annually
The property’s unique design and central location appeal to affluent travelers, boosting yield potential.
Architectural and Cultural Significance
The hotel occupies a historically protected 19th-century building.
Notable features:
- Ceilings over 4 meters high
- Stained glass gallery and winter garden
- Renaissance-style lobby and woodwork
- Original oak staircases and columns
It is more than a business asset — it’s a heritage property enhancing PPF’s public image.
Planned Renovation and Upgrades
PPF announced a phased renovation budgeted at €12 million, set to begin in late 2025 and finish by the end of 2026.
Planned upgrades:
- Façade restoration
- Interior refurbishment with preservation of historical elements
- Installation of BMS (Building Management System)
- Energy-efficiency improvements
- BREEAM In-Use certification
The goal is to position the hotel as a premium boutique property blending cultural authenticity with luxury service.
Why Prague Remains a Prime Investment Market
Prague continues to be a stable and attractive destination for hospitality investment in Central Europe.
Advantages:
- High tourist volume year-round
- Moderate operating costs
- Transparent legal and tax environment
- Limited supply of heritage buildings in prime locations
Total hotel transaction volume in Prague reached €380 million in 2024, with significant activity in the luxury segment.
Competitive Landscape
Nearby competitors include:
- Four Seasons Prague
- Mandarin Oriental
- Hotel Paris
- Augustine Prague
Yet, the newly acquired hotel stands out due to its architectural uniqueness, panoramic views, and upcoming upgrades.
Conclusion
The €68 million acquisition of this luxury hotel reinforces PPF Group’s commitment to long-term, income-generating assets in Prague. In a market marked by high visitor demand and limited supply, the property offers both commercial and reputational value.
With plans for renovation, digital integration, and boutique repositioning, the hotel is set to become a flagship destination — strengthening PPF’s position in the elite segment of Central European real estate.
