A Nordic, family-owned fund has acquired Don Giovanni, one of the largest hotels in Prague, from international hotel investment fund manager Mornington Capital.
Financial details were not disclosed.
Christopher Eddis, Mornington Capital, said: 'Ongoing investment by the purchaser will ensure continued growth and improvement of the hotel, which has been extensively turned around since original acquisition in 2015.'
Cushman & Wakefield, in collaboration with Hodges Ward & Elliott, represented Mornington Capital.
'The investment market for hotel properties is in a very good shape and the demand from investors is huge,' said David Nath, head of the Central & Eastern European Hospitality team at Cushman & Wakefield.
'Many prospective buyers have set their sights on large hotel properties, but this premium product is in short supply in Prague 1. As a result, investors look at the broader centre of Prague such as the Žižkov quarter where Don Giovanni is situated. The performance of the hospitality sector has greatly improved in recent years, which has contributed to achieving the maximum price,' Nath added.
Locally-based Czech Inn Hotels remains the operator. The firm took over the helm at Don Giovanni in 2015 when German-based Dorint Hotels & Resorts sold the hotel.
Tomáš Cejnar, senior investment advisor at Cushman & Wakefield Hospitality CEE said: 'This is the second largest transaction in the hospitality sector completed this year, following Prague’s InterContinental Hotel. Also, the fact that Czech Inn Hotels has retained its position as the operator of the Don Giovanni Hotel for the future shows that Czech hotel operators are perceived very positively by international investors.'
