Czech Republic: Luxury hospitality group Kempinski Hotels has acquired the five-star Augustine Hotel, Prague, marking its first acquisition in more than 50 years.
Located in Malá Strana (Lesser Town) beneath Prague Castle, Augustine Hotel, Prague stands within the walls of the Augustinian Monastery of St. Thomas.
The property features 101 guest rooms including 20 suites, a restaurant and bars, a spa and fitness centre, a library, meeting space, and outdoor terraces and gardens.
Augustine Hotel, Prague will operate as a white label, luxury hotel until late 2026, when it will be reflagged as Kempinski. The company will refurbish all rooms and public spaces.
CEO of Kempinksi, Barbara Muckermann, said: “Kempinski was founded on a simple belief: that hospitality should enable guests to experience the best of The Good Life. Since its origin, Kempinski has defined luxury not as status or formality, but as generosity and joy; curating experiences from the heart of the destination and deriving richness from its culture and communities. As we evolve our business and brand strategy we are bringing this heritage back to life with the modern day traveller in mind.”
Gordon Drake, chief financial officer, Kempinski, added: “From a business perspective, well-located luxury hospitality assets with strong brand equity and cultural significance offer resilience across market cycles and an opportunity for a significant return on investment. Furthermore, through direct ownership we are better placed to reposition the Augustine Hotel, Prague as being one of the very finest hotels in Prague and create significant value from the asset elevation.”
Kempinski Group was advised on the transaction by A&O Shearman, Hill International, Alvarez & Marsal and Christie & Co. Kempinski’s senior debt lender for the acquisition was Erste Bank.
Highlights:
- Kempinski Hotels has acquired the 101-room Augustine Hotel, Prague, marking the group’s first hotel acquisition in more than 50 years.
- Located in Malá Strana beneath Prague Castle, the five-star property occupies a former monastery and includes 20 suites, spa facilities, dining venues, and meeting spaces.
- Following the acquisition, Augustine Hotel, Prague will operate as a white-label luxury hotel before being rebranded under the Kempinski flag after a full refurbishment by late 2026.
- The repositioning project will upgrade all guestrooms and public areas, enhancing amenities such as the restaurant, bars, spa, terraces, and landscaped gardens within the historic complex.
- Kempinski Group financed the transaction with senior debt from Erste Bank and advisory support from A&O Shearman, Hill International, Alvarez & Marsal, and Christie & Co.
