18 October 2021 - Virtual
10 November 2021, Virtual
London, UK - November 2021
Supply outstrips demand
Hotels in Prague have seen a "consistently gloomy" year to date as supply continued to outstrip demand, industry researchers STR Global said.
STR said a general lack of demand and oversupply of hotels had driven Prague's performance indicators "deep into negative territory".
In the first half of 2009, foreign visitors to the Czech capital fell 10.8% year-on-year while occupancy fell 15.5%.
But the supply of four- and five-star hotels in the country as a whole has more than doubled since 2000, STR said.
Average daily rates (ADR) fell by 17.9% year-on-year to €80.65 causing revPAR (revenue per available room) to fall 30.6% to €42.86.
STR Globasl's managing director Elizabeth Randall said Prague's hoteliers had cut rates as a "knee-jerk reaction".
"The city's hoteliers just doubled up on the pain as price cuts did not stimulate demand that wasn't there," Ms Randall said.
Choice Hotels International (CHI), Starwood Hotels and Kempinski have all opened large properties in Prague in recent times.