Corinthia sells Panorama Hotel Prague to S+B Gruppe [Infographic]
Prague’s ever-changing skyline. (Photo: Property Forum)
The Czech Republic’s hotel investment market recorded ten hotel transactions for a total of €530 million this year, one of which was the sale of the Panorama Hotel.
The Czech Republic’s hotel investment market grew by more than 100% and has recorded ten hotel transactions for a total of €530 million this year. In the past, the average yearly transaction volume reached €250 million.
Panorama Hotel Prague changes ownership
Following the trend of the many recent high-profile hotel sales, the 4-star, 440-room Panorama Hotel Prague just changed ownership.
With the assistance of Cushman & Wakefield, Corinthia Hotel Group sold it to S+B, an Austrian investor.
Frederic Le Fichoux, Partner & Head of Hotel Transactions for Continental Europe at Cushman & Wakefield said: “The strong interest from investors with a diverse source of capital and origin proves again that Prague and the CEE region are increasing their appeal for hotel investors.”
With six of this year’s ten transactions amounting to €483 million and taking place in Prague, the Czech capital is the undisputed hotspot for hotel sales.
Four of these sales were executed by Cushman & Wakefield which gives them enviable experience in this market. In the past five years, they brokered 25 transactions.
Other high-profile transactions in recent years include the 2017 sale of the Hotel Diplomat to the Thai investors at U City and the 2019 sale of the Don Giovanni Hotel to the Norwegian investor Wenaasgruppen.
A unique opportunity for investors
The Panorama sale is different because it not only included the hotel, but also a neighboring lot in the heart of the city’s business district which has great potential for development.
This has opened several options including creating a separate project on the plot which could include offices, shops and/or residences or tearing down the existing hotel to make room for a new mixed-use development spanning both plots.
More hotel sales expected in Prague
Magsud Rahmanov, Senior Hotel Investment Advisor for Continental Europe at Cushman & Wakefield said: “Judging from the record number of interested parties and strong offers from a diverse pool of capital the property has received, the appetite for value-add hotel investment opportunities in Prague is high. Therefore, we can expect more hotel transactions to happen in the coming months.”
According to the TOPHOTELCONSTRUCTION online database 9 hotel projects are currently in the pipeline for the Czech Republic:
Let’s take a look at a few more upcoming hotel projects by Corintia Hotels:
Best Stories for you