Kempinski acquires historic Augustine Hotel in Prague

The luxury hotel group is expanding its presence in Europe and, for the first time in more than 50 years, is once again opting for the direct acquisition of a hotel. The Augustine Hotel in Prague is set to serve as a flagship project for the future direction of the brand.

Kempinski Hotels has announced the acquisition of the historic Augustine Hotel Prague. With the purchase of the luxury hotel in Prague’s Lesser Town (Malá Strana), the company is strengthening its direct presence in the European hotel market and will increasingly pursue a strategy involving owned hotel properties.

According to Kempinski, this is the group’s first hotel acquisition in more than five decades. The company last invested in a hotel in 1970 with the Hotel Vier Jahreszeiten Kempinski Munich. The acquisition of the Prague property is therefore regarded as an important step in the repositioning of the historic luxury hotel brand.

Foto: Augustine Hotel Prague

Hotel in a historic monastery complex

The Augustine Hotel is located at the foot of Prague Castle in the historic district of Malá Strana. The hotel forms part of the St Thomas Augustinian Monastery, whose history stretches back more than 800 years. Augustinian monks still live and work there today. The hotel occupies a separate section of the historic site and combines listed architecture with modern five-star comfort.

The property offers a total of 101 rooms and suites, including 20 suites. Many of the rooms retain original vaulted ceilings and timber beams dating back to the time when the buildings served as living quarters for the monks. Facilities also include several restaurants and bars, a spa and fitness area, the historic Monastic Library, event spaces, as well as extensive gardens and terraces.

Foto: Augustine Hotel Prague

Renovation and repositioning planned

Under the new ownership, the hotel will initially continue operating as an independent luxury hotel until the end of 2026. At the same time, Kempinski is planning extensive modernisation and renovation works covering both the guest rooms and public areas. The historic character of the building is to be preserved throughout the process. The property will then officially reopen under the Kempinski brand.

Chief Executive Officer Barbara Muckermann described the acquisition as a rare opportunity to acquire a historic property in one of Europe’s most important tourism destinations. The Prague hotel is expected to serve as a flagship project for the future development of the brand.

Foto: Augustine Hotel Prague

Prague a sought-after luxury destination

Kempinski also points to the strong tourism appeal of the Czech capital. Prague is among the most visited cities in Europe and is experiencing growing demand, particularly in the luxury segment. The combination of historic architecture, cultural attractions and international accessibility continues to make the city attractive to hotel investors.

With the acquisition of the Augustine Hotel, Kempinski secures one of the best-known luxury hotels in the Czech capital while also sending a clear signal regarding its future growth strategy.