The Marriott hotel in Prague has been sold, in one of the CEE region’s largest real estate transactions of the year.
The 416 room hotel is part of a major mixed use development, the Millennium Plaza, combining office, retail, parking and leisure space. Sold as a single asset, it realised around EUR200 million for seller PH Properties. The hotel will continue to trade as before, with operations handled directly by Marriott under a long term hotel management agreement.
A New Investment Fund Is Launched
The hotel and Millennium complex have been acquired by the Prime Hotel Assets Fund, an investment fund managed by J&T Investment Company, partnering with hospitality investment specialists Dosfield Group. This is the pair’s first joint investment in this capacity
The deal comes 18 months after another major hotel asset in Prague changed hands, again with agent CBRE handling the transaction. That saw the Hilton Prague sold to new owners, Czech-based PFF, after the asset was offered for sale by the Irish Bank Resolution Corporation. The 791 room hotel traded for around EUR270 million.
The aim is for the new fund to become part of a larger vehicle, building a portfolio of real estate investments across central Europe, said Jan Kotek, member of the board of J&T Banka, which provided capital for the acquisition.
“We believe we are able to identify high-quality partners and assets offering a balanced risk profile and attractive growth potential. Our partnership with Dosfield Group and the acquisition of Prague Marriott Hotel & Millennium Plaza are the first example of such an investment.”
In Prague, the appetite for hotel investments is driven by a tight market where planning and building a new hotel can be a challenge. Currently, the city’s hotel pipeline is modest in scale.
One of the few projects coming through to opening is the Puro Hotel Prague. A 150 room development, it is due to open in early 2027. Puro is a Polish lifestyle hospitality group, which is bringing forward in Budapest and Warsaw, adding to a portfolio of eight trading properties across Poland.
Marriott is also planning an opening for its new Ritz-Carlton luxury hotel in the city’s Old Town Square. Developed by combining eight historic houses overlooking the square, the property will have 84 rooms, as well as a spa, conference rooms and its own restaurant.
More Luxury Hotels Planned
And it is in the luxury segment that there are more planned openings. Kempinski is working up the five star Augustine Hotel, a refurbishment that will be followed by a relaunch as part of the Kempinski portfolio in the second quarter of 2027. Accor is also expanding its local portfolio, with a rebrand of the Mozart Prague hotel to its Sofitel Legend brand. The 70 room property will have a refit, retaining its distinctive history features, reopening in the first half of 2027.
IHG is also planning to add to its presence in the city. The new InterContinental Prague Old Town will have 137 rooms, with an opening scheduled for early 2029.
