OVERVIEW
- The sample of branded full-service hotels in Prague recorded a healthy increase in profit during the 12 months ending in August 2025 compared to the same period last year. The GOP per available room (GOP PAR) rose by 6.0%, driven by a 6.3% increase in revenue, despite a 6.6% increase in expenses.
- The RevPAR increased by €9.7 YoY (+7.3%), driven by the 3.7 pp. growth in occupancy, and supported by increased ADR (+€3.3, +2.5%) reaching €173. The F&B revenue reached €35.1 PAR (+4.7%) during the period.
- Total expenses increased by €6.2 YoY reaching €100.6, driven by other expenses (+€3.8, +11.2%), and payroll (+€2.3, +6.1%).
- The occupancy growth was primarily driven in January, growing by 21.1%, followed by November (+11.9%), and April (+11.0%). Notably, among the few declining months, March recorded -4.5% less occupancy since last year.
- There were seven new hotel openings in Prague during the 12 months, adding 769 new rooms to the supply. When weighted by opening date, the total supply only increased by 1.1%. However, as most of the new supply opened within the luxury segment (63%), hotels in this class recorded a slight decline in occupancy, albeit RevPAR increased due to rising ADR.
- Overall, as the nominal revenue increased more than expenses (+€11 vs +€6), the hotels recorded a positive GOP flow-through of 43.0%. Nevertheless, the GOP margin slightly declined (-0.1 pp.) to 45.2%.
Source: Cushman & Wakefield 
Source: Cushman & Wakefield
SUPPLY
- Over the last 12 months (YE August 2025), the Prague hotel market recorded seven hotel openings (+769 rooms).
- The W Prague (former hotel Evropa) opened after a repositioning project which also involved extension. Four of the newly opened properties were rebranding initiatives: Fairmont Golden Prague Hotel & Residences, Sir Prague, and Limehome Halkova. The remaining openings involved property conversions.
- Four of the newly launched properties are operating as serviced apartments, strategically targeting extended-stay travelers. This approach aligns with the preferences of intra-European tourists, who increasingly favor extended holidays over long-haul travel with short stay. This shift in travel behavior is highlighted in the European Travel Commission’s latest forecast report (Q2 2025).
- Overall, the hotel supply in Prague increased by +1.1%, compared to the same period last year (weighted by days open).
- The majority of the new room supply was in the Luxury class, representing 63%, followed by the Upscale segment with 13% of the total volume.
- Most of the new hotel supply (80%) opened in Prague 1, the historic old town area of the city.
- Going forward, Crown Palace by Adrez is expected to open with 49 new rooms in Q4 2025.
- There were no reported closures during the period.
Source: Cushman & Wakefield
PAYROLL COSTS
The labor expenses increased by €2.3 (+6.1%) reaching €40.2 PAR during YE August 2025. The cost growth was driven by the F&B (+€0.8, +5.3%), and rooms departments (+€0.8, +6.8%)
OTHER EXPENSES (excl. Utilities)
The other expenses increased by +€3.8 (+11.2%), this cost category recorded the highest YoY growth. The A&G (+€1.2, +19.5%) and S&M (+€1.1, +18.0%) departments contributed primarily to the cost increase.
COST OF SALES
The total cost of sales remained mostly unchanged, the slight €0.1 (+0.5%) increase was due to the F&B department (+€0.4, +6.6%), despite both rooms and OOD departments declining (-€0.3, and -€0.1 respectively).
UTILITY COSTS
The change in total utility costs was negligible. The €1.7 saving on electricity expenses was almost entirely offset by the increasing gas costs (+€1.6).
Source: Cushman & Wakefield
The total revenue growth was driven by Rooms (+€9.7 PAR, +7.3%), and F&B departments (+€1.6, +4.7%).
Source: Cushman & Wakefield
The total expense growth was driven by Rooms (+€1.5 PAR, +4.5%) and A&G departments (+€1.5, +13.0%), with F&B and S&M departments following closely (+€1.5 for both).
Source: Cushman & Wakefield Markets & PerformanceCzech Republic 
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