Revenues of hotels in Prague are falling which threaten the existence of dozens of hotels.

While last year the price of a room in a four-star hotel in Prague used to be 5,500 crowns per night, today such hotels are selling for a half price. Prices are generally around 90 EUR per room per night, depending on the occupancy
The number of foreign tourists decreased by 18 percent according to the agency CzechTourism. Because of this, hotel occupancy fell to 50.9 percent at the end of May 2009.

The situation, according to people in the tourism field could result in a wave of collapse. For example, the association of travel agencies predicts the collapse of 70 hotels in Prague.
The collapse already started, for example, the Floor hotel with its 40 rooms in the center of Prague on Na Prikope street has been closed since the end of June. The Prague Investments Corporation who rented the Floor hotel after it was closed, is now looking for a new tenant to run the hotel under a new name.
Similarly, ended up the big four-star hotel Bellagio in the heart of Prague in the U Milosrdny street, as per the hotel manger, the reason of closing the hotel was the high rent.

Hoteliers are beginning to feel the effects of the financial crisis increasingly and therefore they are selling for a cheaper price to attract the guests, most of Prague hotels are selling for the half price. But it’s not a very easy mission, because only in Prague, there are almost 430 hotels and in total (including pensions or hostels) 120 thousand beds, which is much more than in Vienna.
The situation is very sad for hoteliers in Prague, you can now pay even 50 EUR for a room in a four-star hotel. When you deduct the VAT, the accommodation fees, copyright fees for associations, payments for energy, laundry, cleaning, the price of breakfast and the salaries, you end up in loss.

The overall decline in sales of Czech accommodation for the first half of 2009 went under 16 per cent as per the Czech Statistical Office.
The worst situation is for Prague hoteliers due to the loss of guests and cheaper recorded annual sales per one room (in the range of 20 to 35 percent). Offer exceeded demand in most regions since last year. Consequently some smaller hotels may be transformed into flats as the situation for Prague apartments is better than hotels.