Comment of the British Chamber of Commerce in the Czech Republic, French-Czech Chamber of Commerce in the Czech Republic, Nordic Chamber of Commerce in the Czech Republic and American Chamber of Commerce in the Czech Republic on „Program Antivirus"
The spread of the coronavirus has caused an economic crisis as both companies and individuals have decreased demand on a wide range of a product and service. This crisis has been exacerbated by government measures aimed at restricting the rapid growth of infection and loss of life.
- 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.
Grant Thornton would like to inform you that the Government of the Czech Republic approved the bill of the Ministry of Finance this week to adopt further tax measures in connection with the extraordinary event caused by the spread of the coronavirus (so-called Liberal Aid Package No. 2). We briefly present the individual proposed measures in the following summary:
Legal Alert - Assistance for persons affected by crisis measures in connection with coronavirus SARS CoV-2 - II.
Antivirus program: Wage compensation support
Strategic Directions for Czech Economic Policy
- 1) Transition to High-Tech Manufacturing
- 2) The City Campus as Idea Factory
- 3) Government Programs That Drive Innovation
- 4) Government as a Competitive Advantage
In Policy Pipeline policy developments in the Czech Republic and abroad are monitored to bring better understanding of current topics and trends.