Prague terminates lease of Petřín restaurant ahead of funicular reopening

Prague has terminated the lease of the Nebozízek restaurant on Petřín Hill, escalating a dispute with the longtime operator who says he will challenge the decision in court.

The restaurant sits near the funicular stop halfway up Petřín Hill and is part of a historic site overlooking central Prague. City-owned company Trade Centre Prague (TCP) says it has also filed a criminal complaint over alleged unauthorized construction work at the premises.

The operator, who has run the business for decades, rejects the allegations and says the situation stems from the long-term closure of the funicular line and unresolved rent disputes. The case adds further uncertainty to one of Prague’s well-known hillside hospitality sites, which has struggled with declining footfall due to transport disruptions.

According to TCP, the lease agreement formally ended on Sept. 30, 2025, but the tenant has not yet handed over the building. The company says it discovered construction activity during a routine inspection.

“We found that new construction was taking place instead of the tenant vacating and handing over the premises,” a TCP representative said, adding that police were called to the site and a criminal complaint was filed against an unknown offender.

The city company argues that repeated requests to vacate the property were ignored, leading to legal steps. Restaurant operator Luďek Láryš rejects the claims, saying the work in question was routine maintenance rather than new construction.

He said workers were replacing a wooden floor installed in 1999, parts of which had begun to rot. He also pointed to long-term investments into the property, including the construction of a glass terrace.

Láryš said the restaurant has been heavily affected by the closure of the Petřín funicular, which previously brought much of the venue’s customer base. He added that he requested a rent reduction of around CZK 300,000 per month due to the disruption, but the request was denied.

The operator argues that mounting rent arrears followed the lack of relief during the transport disruption period. He says he will defend himself legally against the termination.

TCP maintains that the lease termination was approved by Prague city council in 2024 and formally communicated through official channels, with repeated calls for handover going unanswered.

The dispute has now moved into a legal phase, with both sides preparing for potential court proceedings over the validity of the termination and the condition of the property.

Nebozízek, located on a historic site beneath Petřín Lookout Tower, has operated in various forms for decades and remains a well-known stop for visitors to the hill. After two years of closure, the funicular is set to reopen later this year with new carriages and track improvements.