Hotel industry boom in Czech Republic: back to pre-crisis times

2018-11-23 23:38

Since 2014 the Czech Republic has been undergoing a real hotel industry boom. That year there had been set a record of tourists’ visits in comparison with previous years. More than 8 million tourists visited the Czech Republic in 2014 and since then the amount had been constantly increasing. Thus, the hotel business is regarded among the most popular spheres for investments and SP Estate Company works out the project that expects to bring up to 10% of annual net profit.

The total amount of hotels in Czech Republic including mini-hotels and guest houses exceeds 8 000 and this amount continues increasing showing that Czech Republic becomes more and more attractive destination from the touristic point of view.

While mini-hotels and guest houses are more popular in small cities and villages traditional hotels of 3-5 stars are of greatest demand in Prague. The Czech capital is included into top-10 most visited European cities. In 2017 Prague was visited by 7.65 million tourists. The amount increased by 7.4% in comparison with 2016.

On the one hand tourists are attracted by unique places of interests and on the other hand Prague offers reasonable prices for food, apartments and entertainments. The majority of tourists come from Germany (19.3%), Slovakia (6.7%), Poland (5.6%), Russia (5.45%) and China (5.1%).

Increasing of tourists’ amount directly affects hotel industry. Touristic housing demand rapidly grows. In 2017 tourists spent 16.7 million nights in Prague according to European Cities Marketing. Thus 1 tourist spent more than 2 nights in Prague.

In 2017 Prague offered 526 hotels, 94 guest houses, 20 camps, 48 hostels and 99 other facilities. Alongside with touristic popularity increasing occupancy of beds also grew. During the previous year in Czech Republic the overall average beds occupancy reached 69.5%. Taking into account hotels only the average occupancy was about 80% and the experts predict that this amount will increase to 82% by 2019.

Thus, hotels in Prague are perfect investments that are expected to recover the expenses rapidly. An average Prague hotel may bring net profit from 7 to 10% of investments. Therefore expenses are expected to be completely recovered in 10-14 years. Moreover hotel boom has just started in Czech Republic therefore capital hotels may become more and more profitable in the nearest future being one of the most attractive instruments for making investments.

SP Estate offers investing in the Prague hotel and become a part of dynamically developing market. Moreover annual profit of investors may increase ahead of growth of the Czech economy in general.

The post Hotel industry boom in Czech Republic: back to pre-crisis times appeared first on ZyCrypto.

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