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What is the interest in equity investment in the Batumi resort property market?

August 26, 2024

Wyndham Grand Batumi Gonio offers equity investment to partners

Georgia is becoming an increasingly popular destination for investment. Against the European real estate market crisis, the sector is actively developing in the country. In recent years, exciting projects have emerged that offer equity investments for all comers.
One of these projects is the Wyndham Grand Batumi Gonio Resort, under development in Batumi. The complex creates comfortable conditions for cooperation not only for holidaymakers but also for partners. Wyndham is offering a flexible investment programme. In addition to the standard sale of hotel rooms, there is another investment option:
– the complex offers investment packages or shares;
– the size of such a package is at the investor’s discretion;
– however, one share of the programme costs about USD 3.3 thousand.
The lower the cost, the more shares purchased. For example, the purchase of 25 shares will cost the investor USD 64.4 thousand, while the price of one share will be USD 2.6 thousand.
Buyers profit from the investment even before the end of construction works. At this stage, the return is 5%. After the complex is fully operational, this figure should increase to 11.6% per year.
When cooperating with an investor, the developer is a guarantor of obligations. It handles the procedures for drawing up contracts and obtaining permits from the Georgian Ministry of Justice. In addition, the developer offers the possibility of instalments and buy-back. In the latter case, the cost may increase by 100% of the original investment amount. In addition, the owners of the shares participate in the RCI programme. This allows them to spend some time holidaying in the hotel where they purchased the property. In addition, RCI members can visit other resorts included in the programme.

equity investment

Advantages of Batumi

Based on data from Galt & Taggart for 2023, 16 thousand apartments were on sale in Batumi. Foreign investors bought 75-80% of them. Such a trend is observed by almost all developers in the city.
Batumi is a popular tourist destination. Many travellers from different countries visit the city every year, making the capital of the Republic of Adjara and the region an excellent investment option. Another advantage of the local property market is the variety of offers. An investor can choose a property for different budgets. In addition, management companies and hotel complexes offer flexible terms of cooperation.
The region is popular with major hotel operators. Over the last two years, several large branded hotel complexes have appeared here, including Wyndham, Accor, Radisson, Rotana, and others.
The Georgian government is also keen to attract foreign investment. It has a simplified system for foreign citizens to buy property here — practically no restrictions.