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Some hotels in Prague, turned back to the tenement houses

Part of apartment houses in Prague by the owners over the past decade, rebuilt at the hotels, the economic crisis seems to return to its original purpose and hotel apartments is changed back into tenement houses. In an interview that said Mr. Jaromir Beranek - economist and analyst of tourism. Mr. Beranek alleviate some pessimistic estimates that it will end in default at 10 to 15 of about 560 Prague hotels. By Mr. Beranek, situation on the Prague hotel market was until recently very specific. Since the second half of the 90´s of the last century to the middle of this decade yielded hotels with cheap inputs and constant influx of tourists around a third more than normal in Western Europe. Dozens of owners of apartment buildings therefore rushed to the hotel business, said one reason was the rent control in apartments.

„The first signs of crisis in tourism in our country began to materialize in the second quarter of 2008, when occupancy fell year on year in the Prague hotel for more than six percentage points,“ said Mr. Beranek. This year his company Mag Consulting predicts a decline in occupancy below 50 %, which would be the first time during the existence of the Czech Republic.

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