Capital of Czech Republic Prague belongs to the most attractive cities in Europe. It is therefore destined to be popular with tourist. So it was only natural that after the borders with the West opened in 1989 the demand for hotel accomodation was enormous. But hotel capacities available at that time were very limited and of inadequate quality. Therefore the majority of hotels in Prague came into existence after 1989. It means that most of them are relatively new.

Majority of hotels in Prague are in 3 star category, 4 and 5 star hotels are less frequent than in comparable European cities. Most hotel operators own the hotel buildings in which they operate. Hotels that rent their buildings are in minority.

There are some 420 hotels in Prague, a little more than e.g. in Vienna. Most of them were established in reconstructed buildings. In their majority they do not offer many luxury features. They were built in the time when the primary focus was on satisfiyng the volume of demand. So not many have large rooms, swimming pools, conference rooms etc. There are more 3 star hotels and less 4 star hotels than e.g. in Vienna. Up till now the stress was put on accomodation capacities and less on services and entertainment. In this area there is still a space in the market that needs to be filled.

Prague Hotels for sale

At this moment there are some four 5 star hotels for sale in Prague, ten 4 star hotels and about 35 three star hotels. Some of the hotels that are sold are actually not fully licensed hotels, their buildings have been approved for residential apartments and not hotels. Some of them are in this category on purpose, the others were not able to get approval for transforming an apartment block into hotel . Prague authorities were trying to prevent that there are too many hotels in some parts of Old Town that would change the character of the neighbourhood. Sometimes the hotels were not able to create necessary number of parking spaces. Hotel residences have to charge to their clients VAT of 20 %, while regular hotels charge only 10 % VAT.