Kempinski Group has acquired Augustine Hotel, a historic five-star property located in Malá Strana beneath Prague Castle in the Czech Republic. The deal, completed on April 7, 2026, marks Kempinski's first hotel acquisition in over 50 years. The transaction was financed with senior debt from Erste Bank and will see Augustine Hotel undergo a full refurbishment before being rebranded as a Kempinski property by late 2026.
Deal structure and financing
The acquisition of Augustine Hotel is fully funded through senior debt provided by Erste Bank, a leading Austrian banking group. The exact financial terms of the deal remain undisclosed, but the transaction's debt component underscores Kempinski’s strategy to leverage its balance sheet for strategic growth opportunities in key European markets. Additionally, the company was supported during negotiations and due diligence phases by legal counsel from A&O Shearman, project management firm Hill International, advisory services from Alvarez & Marsal, and sell-side advisor Christie & Co.
Strategic context
Kempinski's acquisition of Augustine Hotel aims to strengthen its presence in Prague’s luxury hotel market. The property, situated within the walls of a former Augustinian Monastery, offers significant cultural and historical value that aligns with Kempinski’s heritage as a purveyor of authentic local experiences. CEO Barbara Muckermann emphasized that this transaction reflects Kempinski's commitment to evolving its brand while preserving the core values of hospitality rooted in the destination's culture.
The Augustine Hotel’s strategic location in Malá Strana, near Prague Castle and historical landmarks, provides an ideal setting for tourists seeking a blend of luxury accommodations and cultural immersion. The rebranding and refurbishment plan will enhance the property’s appeal to discerning travelers and solidify Kempinski’s reputation as a premier hospitality group.
Regulatory path
The acquisition did not face significant regulatory hurdles, given its non-controversial nature in terms of market impact and competition. While specific filings are not detailed in publicly available information, typical European Union and Czech Republic regulations would have been observed for merger control purposes. The deal’s modest scale relative to the hospitality sector likely exempted it from extensive antitrust scrutiny or divestiture requirements.