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Prague: the Mothertown bears fruit

Czech Republic is one of the largest tourist markets in Central and Eastern Europe. Its capital city of Prague concentrates more than one third of tourist overnights in the Czech Republic and 90% of international tourists. Prague is the 5th most visited city in Europe.

Orea Hotels, leader on the market and national to the Republic, lost part of its supply resulting in 1,841 operational rooms as of January 1, 2018. After a feeble increase in 2016, the country's chain supply shrank again in 2017 by 108 rooms (0.5% of the supply), down to 20,674 keys at 173 properties in 2018. The penetration rate, at 20.2%, is among the lowest in Europe.

Occupancy rates increased by 2.8 points in 2017. OR reached 74.9%, the highest level since 2007. ADR increased by 5.0% in 2017 to €84.5 VAT incl., the highest level in the EEC region. The cumulative rise in ADR and occupancy led to a surge in the RevPAR, up 9.0% (to €63.3 VAT incl.). Despite this strong rebound, it has not returned to its pre-crisis levels.

Having suffered less damage in World War II than most major cities in Central and Eastern Europe, Prague has a wide variety of architectural monuments and historic landmarks.

The Czech capital hosted 113 chain hotels and 14,585 rooms as of January 2018, slightly increasing (+2.8%) from 2016. The capital represents two thirds of the national chain supply in terms of capacity. Demand in Prague is evolving favourably with an occupancy rate up 2.9 points in 2017. The average price is also on an upward trend with a 5.9% increase. RevPAR increased by 9.8%.

As in Poland and Hungary, Czech Republic suffers from seasonal demand, with very low occupancy rates between November and April.

Find all our analyses and details of the supply and performances in the Central and Eastern Europe lodging industry in the European Hospitality Report, available on our store.

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