In the last five years (2015-2019) CEE has experienced EUR 4.2 billion worth of transactions – nearly half of the total hotel transaction volume (EUR 9.4 billion) achieved by the region in the last 20 years. Capital cities remained magnets for investment, experiencing 72% of transactions in CEE between 2015-2019. CEE hotel sector peaked in 2019, experiencing unprecedented investment levels of EUR 1.4 billion. Total of 55 hotels changed hands last year, comprising over 10,000 rooms.  The average deal size in 2019 was EUR 31 million and average price per room at about EUR 142,000.  The region has been experiencing growing diversity of investors in recent years, although in 2019, European investors secured 84% of the total transacted volume. Czech Republic remained region’s hotspot, securing EUR 620.4m of investment in 2019 and capturing 43% share of CEE6* market – however investment scenes in Bulgaria and Romania recorded a robust increase, with markets seeing 490% and 212% YOY growth respectively. The most popular hotels among investors in 2019 were upper-midscale and upscale hotels, accounting for 42% of transacted volume. In 2019, the largest transaction in the CEE region was the purchase of the InterContinental Prague for EUR 225m. Nearly EUR 2 billion of transactions where initially expected in 2020, underpinned by several major deals already in progress across the CEE-6 region. However, the completion of these deals is becoming more unlikely due to the growing COVID-19 pandemic. 

After impressive first six months of 2019 for the CEE investment market, the second half of the year marked itself with even greater investment volumes. Overall, in 2019 there was a number of transactions for a total of nearly €14.0 billion. 

Emerging Europe remains a magnet for international dealmakers, CMS report reveals Deal volumes across emerging Europe fell by 6.5% in 2019 Foreign investment surged, with cross-border M&A increasing by 14.6% (1,163 deals) Private equity investments reached a record high with 318 deals, accounting for 16% of all deal-making Telecoms & IT outperformed Manufacturing as the second largest sector by volume (300 deals in 2019, compared with 279 in 2018); the Czech Republic follows this trend Real Estate & Construction remained the most active sector with 378 deals and was also the sector with the highest overall deal value (EUR 16.6bn) Ukraine appears to be the country to watch – with transaction volumes increasing by 26% and transaction values increasing by 26.3%, compared with 2018 Deal count dropped in the Czech Republic  to the lowest level since 2015 (158 deals) – the average deal value shows a healthy increase.