A legal degree never hurts, but how did that help you get going here?
I have a transactional legal background. I’ve been in real estate for more than 10 years and a real estate lawyer since 2019. I was a transactional lawyer and did asset management as well. I find it really helpful to look at the transaction and the whole asset cycle from different perspectives. That’s where a lot of added value comes in. You’re not only looking at what happens during the transaction, but also what happens when you own the building.

It’s very exciting. I love to start really early on the deal because then you help the whole way through. Especially in deals where the transaction insurance makes a huge difference, that’s very rewarding. It’s also just a way for me to go out into the market and get the deal — that’s very satisfying. Especially since we’re the newcomer, with the less-established brand.

It sounds like before you were working on deals that other people brought to you. Now you’re out there, hunting on your own.
Exactly. When I was a transactional or real estate lawyer, I was doing prep work or sitting in meetings with a partner who got the deal. In asset management, we had landlord reps, so it wasn’t us going out. Now it’s me. It’s very satisfying to start from scratch. But it’s not just the transaction. I’m trying to build long-standing relationships with clients so I can help with the whole portfolio. They know they can call anytime. I think that’s very helpful.

Walk me through how a typical deal comes together in transaction insurance.
There are only a couple of options. Either very early on the client knows they want a clean exit, or they need to wind down the company after closing, or there’s some issue they need to secure. They might not want to give a corporate guarantee, so they’re looking for options. If they think of this early on and then I’m involved from the start. If there’s an issue that comes up and we solve it through transactional insurance.

How can insurance speed up a transaction?
Because you know early on that you don’t have to negotiate a lot of things in the SPA. The time limits, the financial limits, the baskets, all of those are usually covered by the insurance. The seller can wind down, and the buyer is okay with that, because they have the insurance company on the other side with a robust process for claims. Usually both sides end up satisfied.

If we come in later in a transaction because of specific risk that can’t be mitigated, that’s where you help overcome deal breakers.

What are the different products you offer?
There’s title insurance that secures your title to shares or real estate, including any identified title risks. Then there’s W&I insurance, warranty and indemnity, which secures the seller’s warranties in the SPA up to a limit. There’s also tax insurance, which secures tax risks above certain thresholds that you might not cover under W&I.

How has title insurance changed over the years?
The product has evolved a lot. It used to be a very formal product you got if there was an issue, so it acted more of a risk management tool, often connected with restitution proceedings. Now it’s more commercially minded. It’s also a financial tool because you save on lawyers’ fees since you don’t have to negotiate the SPA as much. For the seller, they get a clean exit. They can wind down the company rather than keeping the structure for seven years to warrant the fundamental warranties. More broadly, it’s moved on from being a very formal, fairly expensive tool to one that’s not so expensive anymore. We can do smaller deals and it’s more commercially minded.

Do Czech companies and international companies use it to the same degree?
Definitely not. Foreign entities usually use it a lot more. They’re used to it from their home countries. Czech clients know the old product from 10 or 15 years ago, which was expensive and more of a risk management tool. But as a Czech entity that understood the local risks, they usually didn’t need it unless there was a big issue.

Increasingly, Czech clients are going abroad where the other party required it, so they experience what’s essentially a completely new product. The pricing is way down. Once we explain it’s not only risk management but a financial tool, and they use it and find it’s a smooth process, they become more willing to use it again.

Just to be clear, they’re not buying the insurance from you. Explain where Reassurance sits in the food chain.
We’re a broker. We get all the information from the client, like the pricing and the insurance coverage from the insurers, both title and W&I. Then we prepare what we call an MBI report where we show the different options, different pricing, and propose what we feel is the best solution for the transaction. We take into account how the SPA or transaction is structured, what the due diligence findings are, and what both sides require.

How many other brokers are your clients typically talking to?
Usually you have only one insurance broker. The insurance companies have to give the same quote for the same deal. It’s not like they can give Reassurance a quote that’s 10% less than someone else, unless we present a different set of options. Technically you can shop for brokers before they go out and talk to the insurers. It’s not a cutthroat business. We’ll all try to get a deal. But I have to say the competition is very professional. Once you get the mandate, everyone else steps back.

How has the market changed even since you joined three years ago?
When I joined, I knew about five transactions and maybe one was insured, usually for some specific reason like a fund winding down. Now out of five transactions, maybe three are insured. The use of the product has accelerated as it’s become more commercial and more reasonably priced, even for smaller deals.

Which sectors are the busiest for you?
Everybody’s talking about residential, but that’s difficult for transactional insurance because at the end you have individual units. But built-to-rent is new, and we see a lot of BTR and student housing in Poland. I’m waiting to see if that comes here as well.

Poland uses insurance much more than the Czech Republic, partly because they’re much more funded by foreign entities. Here it’s about 90% Czech capital. In Poland it’s like 90% foreign capital. I sometimes see trends coming from Poland to the Czech Republic. In any case, for transactional insurance, it’s really logistics, office, and retail right now.

Do you think this year will be bigger than last, and next year bigger still?
I think it may be. We had a huge year in 2025, but I don’t think we’re slowing down in the next two years. What we saw last year was a lot of smaller deals in the first half and big ones in Q4. Now it’s been pretty consistent throughout the year. Small deals, big deals, mid-sized deals. It’s more of a mix rather than being weighted toward the end. We’ll see what Q4 brings.

Anna Vondrackova is Senior Transaction Advisor for REassurance

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I was contacted by a number of people I’ve known from the past, and they’ve all indicated an interest to look at Hungary again. That’s good from my vantage point, because it hasn’t always been easy to show the value-add potential of Hungary. I’m enjoying this new wave sensation.

Also, because there’s a clean-out of the last regime, for lack of a better word, you see a more level playing field now with service providers. That’s the case in real estate but in many other industries as well. I think this will bring in a lot of new energy, new ideas, and creativity.

Can you give me an example of what you mean?
There’s a site in the middle of Budapest called Rakos Rendezopályaudvar, which is a huge, derelict railway station in the middle of Budapest of some 244 hectares. The Hungarian state did a deal with the Emirati development group Eagle Hills in recent years, that people dubbed “Mini Dubai”.

The approach to that project has changed dramatically because Budapest City exercised its preemption right and stepped into the contract. Budapest organized an international architectural competition for the site that’s attracted quite a number of firms. I’ve met some of them now and they’re all very international but combined with local firms. What’s so exciting is that suddenly they can get involved in the project, whereas in the past it would have been a closed shop.

In terms of the interest from foreign capital, how much do you think Hungary has actually missed out on? There aren’t many these days in the Czech Republic or Slovakia either, but that’s a relatively new situation.  

The Hungarian market has struggled for a number of years for international capital. In general, there were some very low years of investment. The war in Ukraine, inflation, energy prices, but it’s the high interest rates that have been the biggest issue because that just knocked out a lot of the market.

I think Hungary was fortunate in that domestic investors stepped up, whether it was the likes of Erste Bank open fund or OTP Banks fund or whether they were investors linked to the NER network (NER= System of National Cooperation — an ecosystem of domestic business elites and investment funds closely tied to the Fidesz party). In some ways, while you might question transparency, a number of legacy projects were picked up, finished, and completed. There were some terrible examples of properties left in disrepair that were then developed and have become functioning assets — hotels, for example. But yes, we’ve had the retreat of the Austrians and German investors. English money disappeared a long time ago, but that’s not an uncommon phenomenon as we know, investors come and go for many reasons, not just political.

The lack of transparency was one of the primary complaints of the new government and how they built support. Is there going to be a reckoning now on the property markets? Can it ever all be unravelled?

The new government has set up this policy of fiscal transparency and anti-corruption reforms. But the verdict’s out on how impactful that will be. Because everything was done on a “legal basis” in Hungary. You could argue there’s nothing to “unravel”.

On the one hand, you could question how some of these people became incredibly successful so quickly. A good example is the Gellert Hotel, part of a portfolio that had been owned by an English group. They made very few investments and let the property fall into a sorry state. Evenutally the hotel ended up in the possession of a group linked to a relative of Orban. On the other hand, scaffolding is up there and work is underway to refurbish it as a Mandarin Oriental. That’s a great use for an iconic, landmark hotel and it’s an improvement over what was there. It’s a huge issue.

Where are the opportunities today? Projects that have lain dormant for years? Existing properties where owners are suddenly looking for an exit?

There’s capital rotation underway. If someone owned a property and bought it 15 years ago, there’s a better chance of exiting today than there would have been a year ago.

I think the level of liquidity will increase. Personally, I don’t think pricing is going to change much — there might be more stock on the market, which could bring it down a bit. But in general, liquidity will increase.

Development will increase, especially in retail. We had legislation that banned retail plazas, but as I understand it, this is going to be watered down or repealed.

Also, Budapest is quite a strong target market for hospitality, as it has far fewer rooms than Prague, for example. And the tourist numbers are growing. Budapest has been bubbling away all these years and is actually working quite well. It’s just that these elections have given it all a bit of a shot in the arm.

Hasn’t there been a Budapest discount for years now? Yields for commercial property have always been a bit higher.

They’ve been higher, which was linked to the so-called country risk, and because banking debt was more expensive. There’s also a bit of historical context, because Budapest’s office sector tended to have high vacancy — we had 25% vacancy at one stage. But I think if things remain equal and the new government creates stability and is seen to be hitting the right path, you could see yields converge back down towards Prague levels.

How about your business? Are you seeing a new impetus now? More investors interested in getting into the city?

We do project and asset management, along with investment advisory, which has been my role. We’ve been working with Hungarian capital going out of Hungary for some time, thanks to which I’ve expanded my geography to other parts of Europe. That includes doing business in London, where there’s basically no Hungarian equity. By contrast, there’s a growing Czech present there (London), which is great to see. But while we’ve been trying to insulate ourselves by working abroad, it’s nice today to be able to dust off the old files on Budapest properties and help clients with them.

Have prices already risen because of the elections?

Right after the election weekend, I think owners probably added 10% to their asking price. It’s definitely firmed the resolve of owners.

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Several major transactions drove this sharp increase, including acquisitions of Mama Shelter, Hilton, and Ramada Prague City Centre hotels. The Four Seasons purchase, set to appear in Q2 figures, marks another significant deal in this rapidly accelerating market.

This growth reflects broader European trends, where hotel investment reached €21.9 billion in 2024 – the highest level since 2019, showing a 47.6% year-on-year increase.

“We’re seeing strong investor interest in Czech hotel assets, driven by tourism rebound and favorable economic conditions,” said Vojtěch Wolf, Senior Investment Analyst at Savills.

Signals that the accommodation sector is making a comeback were already evident last year. Czech Inn Hotels bought the 160-room Wellness Hotel Step in Prague in a deal worth hundreds of millions of CZK. In that case, the company aims to leverage the property’s proximity to O2 arena by expanding its conference facilities.

In Ostrava, Purposia Group acquired the historic Kampus Palace student housing project (formerly Hotel Palace).

Savills notes improved debt markets are supporting this activity, with lenders showing strong appetite for the hotel sector. “The sector’s strong trading dynamics, underpinned by healthy occupancy rates and RevPAR growth, have reinforced lender confidence,” says Adi Gokal, Director of Savills Debt Advisory.

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The fund requires a minimum investment of CZK 1 million with a five-year lock-up period. Investors through the fund invest in priority C-class shares and bonds of Julius Meinl Living Plc.

“We’re offering investors participation in the entire cycle – from acquisition through development and operations,” explains Robert Kohn, Member of the Supervisory Board.

It’s a strategy he thinks could prove attractive, going by what the company has achieved in Prague. Kohn says its flagship property, The Julius Prague, doubled in value. Its purchase and development cost of €52 million resulted in a €102 million valuation upon opening in late 2022. The 168-apartment property generated €10.3 million in revenues in 2023, and its value increased to €110 million within the first year of operation.

Kohn says that the concept bridges a gap between traditional hotels and serviced apartments, combining the comfort of home with the services of a luxury hotel. The fully equipped apartments feature a modern kitchen. This provides guests with the flexibility to enjoy a home-like dining experience, while also having the option to indulge in the hotel’s restaurant.

But one of the biggest strengths is operational efficiency, says Kohn. Traditional luxury hotels generally require a large team to support extensive service offerings, but this model is designed to be leaner, focusing on what really matters to guests. The result is a gross operating profit margin of over 50%. That’s well-above the typical 30–33% seen in standard five-star hotels.

“Occupancy at The Julius Prague is currently at 75%. About 15% higher than five-star hotels in the city,” Kohn adds. “On top of that, it also has one of the highest guest satisfaction scores in Prague.”

The company already operates in Prague and Budapest, with a new development underway in Bucharest. Future expansion targets Western European cities including Rome, London, and Barcelona. Kohn notes significant undersupply in the serviced residence sector. According to research he quotes, London suffers from a shortage of roughly 30,000 units.

While the development component introduces additional risk compared to traditional real estate funds, Kohn argues the model provides multiple paths to returns: market growth in hospitality, expansion in the undersupplied serviced residence segment, and value creation through development.

“When you transform older properties into luxury residences, you typically see value increases of 30-50%,” says Kohn. “Most developers keep this profit. The structure of fund allows to share it with our investors.”

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The IBRC is due to trying to sell off its assets by the end of the year, not least because of the enormous costs simply involved in managing them. According to the Irish Independent, Quinn Hotels Praha owes IBRC €227 million. The Hilton was reportedly producing €53 million in revenues prior to Covid. It started making profits again in 2022 with revenues of €43 million. In 2015, Hospodářské noviny reported that two bidders were competing for the asset: Best Hotel Properties (connected with the J&T group) and a European branch of Blackstone.

It’s looking like a big year for hotel transactions in Prague. Last month, it emerged that the Four Seasons is also on sale and that the front runner in the bidding was Renata Kellnerová through her new investment vehicle Amalar.

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Němeček will continue with the company, focusing on high-value projects. “During his tenure as CEO, Martin Němeček led the Group through countless high-value strategic transactions and earned internal and external admiration for his . . .

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