According to Deloitte survey 3- and 4- star hotels in Prague had occupancy of 64.7% in first five months of this year in comparison to 68.1% during the same period last year. This is mainly due to increased capacity and new hotel’s opening. The number of beds rose reportedly by 8% to 7,500.
Our view:
We see the news as slightly negative for Orco, as it specializes mainly in upper segment hotels. However, according to news from Orco, their occupancy rate has increased due to new sales strategy and promotion. Additionally June was not the best month for Prague hotels, as market was impacted by World Cup in Germany. Situation should improve during summer months, when occupancy of about 80% is expected.