Kempinski Group Announces Acquisition of the Augustine Hotel Prague

Kempinski Hotels, Europe’s oldest luxury hospitality group, today announces the acquisition of Augustine Hotel, Prague, one of the city’s most historic and prestigious addresses. This wholly owned acquisition marks a significant step in the company’s strategic shift towards an asset-heavier approach to its global portfolio, under the stewardship of Barbara Muckermann, CEO, Kempinski Group. Furthermore, this is the first acquisition for the Group in over 50 years, since the investment in Hotel Vier Jahreszeiten Kempinski Munich in 1970.

Located in historic Malá Strana (Lesser Town) beneath Prague Castle, Augustine Hotel, Prague stands within the walls of the Augustinian Monastery of St. Thomas, a historical site dating back more than 800 years and remains a living, working community of Augustinian monks that preserve a daily routine of worship, work, and study. The property occupies a carefully delineated portion of the historic site, creating an extraordinary dialogue between past and present, maintaining age-old scriptures that hold learnings from centuries of contemplative life.

The acquisition reflects Kempinski’s broader strategic recalibration towards direct investment and ownership of landmark properties to control the guest experience from beginning to end. 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.”

“Opportunities to acquire hotels like Augustine Hotel, Prague are exceptionally rare. This investment offered a unique and compelling opportunity to secure a heritage asset in a top-tier European luxury destination while also creating a grand showcase for The Good Life as the future of Kempinski as an ultra luxury brand.”

Augustine Hotel, Prague features 101 guest rooms including 20 suites, many of which feature original vaulted ceilings and wooden beams, retaining the authentic structure of the monks’ former living quarters; speciality restaurants including two distinct bar concepts including The Refectory Bar, previously the monastery’s former dining hall; a spa and fitness center; The Monastic Library, a library hall housing a collection that spans centuries of theological and scientific thought; over 400 sqm of meeting space; and more than 650 sqm of outdoor terraces and gardens. The property combines meticulously preserved architectural heritage with contemporary five-star standards of service and has long attracted an international clientele, including heads of state, cultural figures and global business leaders.

Barbara commented further, "Rather than pursuing uniformity, we believe that Kempinski’s brand strength lies in its collection of highly individual properties, many of which are historic, architectural landmarks and are deeply resonant of the destinations’ culture and community. As a storied hotel that is recognised for its deep history, cultural significance and architectural heritage, Augustine Hotel, Prague is not only an ideal addition to Kempinski’s heritage-led, global portfolio, it is set to become the first truly physical and experiential representation of the Kempinski of the Future. We look forward to welcoming this iconic hotel into the Kempinski family as a flag bearer for the brand’s continued leadership in luxury hospitality.”

Gordon Drake, Chief Financial Officer, Kempinski Group, 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.

Under Kempinski’s ownership, Augustine Hotel, Prague will operate as a white label, luxury hotel from 1st April, 2026 until late 2026. Kempinski is committed to investing in design-led refurbishments of all rooms and public spaces in line with the Kempinski of the future blueprint whilst remaining focused on preserving the buildings’ architectural integrity and historic character. The hotel will be reflagged as Kempinski in late 2026, focussed on curating The Good Life for guests visiting The Heart of Europe.