Hanner and Kaita Group have successfully transformed a defunct hotel in Prague into a co-living project.
Real estate development companies Hanner and Kaita Group have successfully reconstructed the defunct Vitkov Hotel in the capital of the Czech Republic to suit co-living needs. The investment in the Youston project totalled €14 million.
The renovated building features 105 rental units, each ranging from 12 to 32 square meters, with individual kitchens and bathrooms. Tenants also have access to shared services and facilities, including a dining room, a large communal kitchen, recreational areas, a cinema, and a gym.
Following the reconstruction, the occupancy rate reached 90% within the first two months.
We are satisfied with the project’s success, it is in line with our strategic development direction and encourages us to invest more in real estate projects in Central and Southern Europe,” said Arvydas Avulis, Chairman of the Board of Hanner.
Ugnius Latvys, CEO of Kaita Group, noted that the company has been developing co-living and traditional rental housing projects for three years.
“We are pleased that we have managed to export the co-living housing model from Lithuania to other foreign countries in a relatively short time. We have noticed that students and young professionals are particularly interested in this new project in the Czech Republic,“ said Latvys.
This interest indicates that local young people recognise the appeal of this housing model and are considering living there.
This is not Hanner’s first investment of this kind outside the country. A second student co-living project is currently under construction in Warsaw, Poland, for €25 million.
The student housing project in Warsaw will be the fourth investment in Poland for Hanner, following the opening of student housing in Krakow in 2023 and a similar project underway in Wroclaw.
Prague becomes the second city, after Vilnius, to host a Youston co-living project. Building on the success in these two European capitals, Kaita Group plans further expansion,
with the Youston project set to be unveiled to residents and visitors in Riga in the summer of next year. The group also aims to enter additional markets in Central and Northern Europe with co-living projects in the coming years.
Developers anticipate an increase in demand for co-living projects across Europe, driven by migration from rural areas to cities and the heightened mobility of young talent. According to United Nations statistics, while 70% of Europe’s population resided in cities in 1990 and 73% in 2014, that figure is projected to reach 82% by 2050, meaning around 60 million more people will move to urban areas.