CPI PROPERTY GROUP INVESTS INTO ITS HOTEL PORTFOLIO

CPIPG Media & PR CPI PROPERTY GROUP INVESTS INTO ITS HOTEL PORTFOLIO
Business News Czech Republic
CPI PROPERTY GROUP INVESTS INTO ITS HOTEL PORTFOLIO

CPI Hotels celebrates 25 years of successful growth by announcing new hotels in Brno and Český Krumlov

Prague, March 28, 2018 - The CPI Property Group is in full swing, confirming not only the unaudited results for 2017, but also the continuous growth of its CPI Hotels' portfolio. This year, the largest Czech hotel group CPI Hotels, celebrates its 25th anniversary. Since opening its doors in 1993, it has gradually expanded throughout the largest cities within the Czech Republic and in 2014 it entered the international hotel markets. At present, 29 hotels operate in 13 destinations across 5 European countries. The hotel network has a capacity of over 8,000 beds and facilities for 11,400 conference delegates. This year, CPI Hotels adds to the five major new Comfort Hotels brand. It belongs, together with the brand of Clarion business hotels, to the multinational franchise network Choice Hotels International. The hotel group also announces expansion into two new locations: Brno and Český Krumlov.

CPI Hotels had previously served in buildings owned by CPI Property Group as an independent hotel operator. Key expansion was recorded in 2014, when Mamaison Hotels & Residences entered the international hotel markets. In October 2016, CPI Hotels was acquired by CPI Property Group.

Thanks to the pledged investment of CPI Property Group, the portfolio of hotels managed by CPI Hotels has grown to 29, making it the largest (in capacity) hotel operator in the Czech Republic. Hotels managed by CPI Hotels for the CPI Property Group offer a total capacity of over 8,000 beds and conference facilities for over 11,400 delegates. The hotels are located across 13 destinations in the Czech Republic, Slovakia, Poland, Hungary and Russia.

‘The preliminary unaudited results have confirmed that CPI Property Group earned CZK 16.9 billion last year. This represents a roughly 40% increase over the previous year when the net profit amounted to approximately 12 billion crowns, ’explains Zdeněk Havelka, Executive Director of CPI Property Group. "Operating profit exceeded 25 billion crowns, or almost 1 billion euros. At the end of 2017, our group managed assets of almost CZK 191.5 billion and recorded a year-on-year increase of thirty percent. With CPI Hotels of course, contributing to the Group’s results, ’adds Havelka.

‘I am glad that this year, on the occasion of our 25th anniversary, we can usher in the Comfort Hotels brand to the domestic market on top of introducing new projects in the cities of Brno and Český Krumlov, that is, in destinations we have long considered, ’said Jan Kratina, CEO and Chairman of the Board of Directors of CPI Hotels, he adds: ‘Entering Brno has been a long-planned step that will strengthen our position in the field of business conferences. Český Krumlov has the potential to attract interesting international clientele thanks to its well-known attractiveness. The venture into the expansion of our high-end hotel portfolio has been to our advantage. In 2017, we recorded 1.34 million overnight stays, the number of nights spent by our guests. I believe we will triumph this figure in 2018.’

New Clarion Hotel delivers the largest congress capacity in Brno

With the increasing demand for congress tourism, there is a demand for new 800+capacity congress centres in the Czech Republic. Within this trend, CPI Hotels are preparing a brand new 4-star congress hotel in Brno, in the immediate vicinity of the existing train station. Thanks to the modern multi-purpose congress centre with a capacity for 800 people and meeting rooms for over 100, it will become the largest and technologically most well-equipped facility of its kind in the South Moravian Region. The hotel offers 180 4-star rooms and 20 executive rooms designed for discerning visitors to the South Moravian capital. The hotel offers 140 parking spaces, a hotel restaurant with a lobby bar for 250 people and a unique roof-top wellness centre. The hotel will meet the eco-friendly requirements of a variety of advanced technologies, including complete LED lighting for all areas. The hotel’s architecture originated from an international competition won by the well-known Czech architectural firm Schindler Seko Architects. ‘The completion of the hotel is planned for a three-year horizon, and I believe that the hotel’s timeless and elegant architecture will excite both citizens and visitors of Brno." Commented Jan Kratina.

The 30th CPI hotel will be in Český Krumlov

During 2019, CPI Hotels will open its 30th hotel in Český Krumlov. The new Mamaison Hotels & Residences in a historic, listed property on Svornosti Square will offer high-standard accommodation and services to its new guests.

Improving the quality of the portfolio

  • New design and equipment standard for Clarion hotels

Investments are also ongoing in improving services and the standard of existing accommodation and congress facilities. Standardisation of interior design and equipment of Clarion congress hotels has begun this year and will gradually come into effect in all Clarion hotels in the Czech Republic. As part of this project, hotel rooms will be modernised, including installation of high-tech equipment.

  • Expansion of České Budějovice Clarion hotel with new multi-functional congress centre

Clarion Hotel Ceske Budejovice will be expanded. Construction works will commence in the first half of 2019. Upon completion, the hotel will offer a new multi-functional congress hall, 75 new comfortable rooms and 260 parking places. In České Budějovice, thanks to the new congress centre for 800 people, it is possible to hold large congresses, seminars and events. Variable layouts allow the centre to divide larger exhibits into smaller spaces or alternatively, use the entire hall. The installation will include state of the art multimedia sound and lighting technology.

  • Expansion of Mamaison Residence Downtown Prague

In June 2018, Mamaison Residence Downtown Prague will be expanding its residential complex. The original adjoining office building (Longin Business Centre) will transform into a new wing of the 4-star ‘trendy’ hotel, which will grow to 120 rooms. The commissioning of the new hotel section is scheduled for September 2019.

Comfort Hotels enters the Czech market

Throughout the previous decade, CPI Hotels has added to its portfolio an average of 2 new hotels per year, across almost all categories of accommodation. The brand-new Buddha-Bar Hotel in Prague, the established 4-star Clarion Hotels, the Mamaison Hotels & Residences, the original 3-star Fortuna Hotels and Spa & Kur Hotels. By the end of 2019, 3 hotels in Czech Republic will be introduced to the public under the Comfort Hotels brand in Prague, Ústí nad Labem and Olomouc.

The Comfort brand, features simple urban design with an emphasis on basic comfort and community service, is part of the Choice Hotels International franchise network, one of the world's largest and most successful hotel companies. Today, its franchise network has 6,800 hotels with over 500,000 rooms in 40 countries around the world. The Comfort brand is growing very fast. During the year 2018, a new Comfort franchise hotel is created every week.

A dual-brand trend in the hotel premises in Budapest

The Hotel Starlight Suiten will soon be undergoing renovation in Budapest. Over the next three years, a large ‘dual-brand hotel’ will be created by the renovation of the current hotel and the neighbouring office building which was acquired by CPI PG. The trend of running a two-brand hotel in one building is now becoming more popular worldwide. Two hotels under different brands in two adjoining buildings can share a reception and a part of the facilities (such as a wellness/fitness centre and restaurant). The existing Starlight Suiten Hotel will be named Mamaison Hotels & Residences and the new hotel next door with a hundred rooms, will operate under the brand Comfort Hotels.

Contacts for media

Michaela Winklerová

m.winklerova@cpipg.com

+420 775 168 722