Global hotel brands expand their presence in Georgia
Global hotel brands have long been present in the Georgian market. However, the country’s potential has grown over the years, attracting new investors.
According to PMCG, 17 new hotel complexes are expected to open in Georgia by 2025. Among the largest projects, several significant properties stand out:
– two Hilton chain hotels, each with 200 rooms;
– Sololaki Hills, which will have 188 rooms;
– Ambassador in Batumi, with 182 rooms;
– Paragraph Golf & Spa Resort Tabori Hill with 177 rooms.
A major project in the luxury segment will be the opening of the Wyndham hotel chain. The Grand Batumi Gonio complex will be the first in Georgia for the American management company. The complex will have 1055 rooms, including:
– family residences;
– townhouses;
– villas.
This will be the first five-star all-inclusive hotel in the Georgian market.
Most of the new projects offer apartments for sale, and their prices are the highest in the country’s market. These trends underline Georgia’s growing attractiveness to international brands and foreign investors.
Georgia market characteristics
The local commercial property market also offers properties in the more affordable price range. Most of these properties, including Pontus Rotana and Radisson Blu, are in Batumi. However, unlike the elite segment, investors are not showing active interest in these projects. They are waiting for changes in market conditions to determine further dynamics.
One of the limiting factors for this segment is the shortage of land for construction. This prevents the creation of facilities with developed infrastructure. At the same time, such complexes are located in attractive locations. Despite lower demand from investors, the cost of such facilities continues to rise.
Analysts track market trends through the dynamics of changes in hotel room rates in Batumi. For evaluation, they compare prices in the low season, for example, in December. At the end of 2024, the cost of a room in a five-star complex was comparable to the price in the high season of 2019. Experts believe that price increases will continue in the coming years. This creates opportunities for global brands to build new all-inclusive properties.
Challenges
Faced with the activity of international companies, local developers have also decided to operate as regional brands. However, the properties they offer often do not meet high standards. In addition, large foreign companies do not support local branded properties. At the same time, the cost of such properties in Tbilisi starts at US$2,200 per square metre. By comparison, prices in neighbouring Avlabari begin at US$1,055.