Prague will pay 689 million CZK for the renovation of Hotel Opatov according to the original project

Prague – The Prague City Hall will pay 689 million crowns excluding VAT for the renovation of the Opatov Hotel in the South City to convert it into apartments. The work will be carried out by the company Hochtief CZ, which was selected today by the city council as the winner of a public tender announced in 2018. Earlier this year, the council rejected the awarding of the contract, stating that the price was too high, but they have now returned to the original project.

"If the city were preparing such a significant renovation today, I believe that the whole process would go better. The contract for the construction contractor was announced at the end of the previous term, and as we verified, in this case, a fundamental reassessment of the project at this stage would no longer be efficient,” stated councilor for housing Adam Zábranský (Pirates).

At the beginning of the year, Zábranský mentioned that the price from the competition came out to be a quarter higher than the expected 550 million crowns and that the city would cancel the project and develop a study of other possible solutions, including demolishing the building. At the following council meeting, the opposition opposed this step, and the councilors voted for the city leadership to take steps leading as quickly as possible to repairs and the creation of affordable housing.

According to today’s information, Prague had the Prague Development Company prepare an analysis of alternative options for the high-rise building. From this, according to the statement of the city hall, it emerged that, considering the rising prices in construction, further delays would not be advantageous for the city.

The project has undergone changes from the original plans. Instead of the originally planned 323 apartments, there will be 275 in the former hotel, as the number of larger units intended for families has increased.

For similar purposes as the Opatov Hotel, the adjacent former Sandra dormitory will be reconstructed by Prague 11 at an estimated price of half a billion crowns. The city district took a loan of 200 million crowns from the capital city for the renovation, with an additional 303 million crowns subsidized by Prague. The project has long been criticized by the opposition Movement for Prague 11, whose representatives claim it is overpriced.