J&T enters Prague luxury hotel market, buys 400-room Marriott

The financial group J&T is joining a wave of Czech billionaires snapping up prestigious hotels in central Prague. The Prime Hotel Assets Fund, managed by J&T Investiční společnost, has completed the acquisition of the Prague Marriott Hotel & Millennium Plaza multifunctional complex — one of the largest hotel properties in Prague 1.

The capital for the deal was provided by J&T Banka, with the investment group Dosfield Group, which specializes in hospitality real estate, acting as strategic partner. The parties did not disclose the transaction amount. The key part of the complex is a 416-room hotel with conference and banquet facilities. The acquisition also includes more than 10,000 square meters of office and retail space and an extensive underground car park. Marriott International will continue to manage the hotel under a long-term contract.

“We have been active in the Central European real estate market for many years and have long supported a range of clients through corporate financing. But until now we didn't have a fund focused specifically on this type of capital investment,” says Jan Kotek, a member of J&T Banka's board.

According to Tomáš Martinec, CEO of J&T Investiční společnost, the Prime Hotel Assets Fund will become part of a larger fund targeting premium commercial real estate in Central Europe. “We are now putting together a dedicated team and preparing a broader fund, of which Prime Hotel Assets Fund will be a part. This deal gives us a solid foundation for further growth,” he adds.

Czech billionaires' interest in Prague's luxury hotels has surged recently: the PPF group and Renáta Kellnerová's family recently acquired the Hilton hotel on Florenc and took control of the Diplomat in Dejvice, as well as — apparently — Prague's most luxurious hotel, the Four Seasons, teaming up with Michal Strnad of CSG. Meanwhile, Avast founders Eduard Kučera and Pavel Baudiš turned the former Intercontinental into a Fairmont following a multibillion-crown renovation.