Buying hotel rooms in Georgia: a profitable investment or a financial risk?

Hotel room market in Georgia: overview and trends

Georgia today is not only a country of bright flavours of khachapuri and breathtaking views of mountain ranges, but also a dynamic "magnet" for investors in resort and hotel property. If not so long ago buying a hotel room in Georgia seemed exotic for a Muscovite, now every second acquaintance is interested in it: do they really give residence permits and tax is almost zero? And is it worth investing at all, or is it just another marketing bubble on the tourist hype?

Tourism as a market driver

Chief hotel market engine - booming tourist traffic. In 2024, record 7.4 million foreign visitors have come to the country. To illustrate: this is almost twice the population of Georgia itself! And most of them are not just passing through, but staying overnight and spending money on services. As reported by National Statistics ServiceIn the last two years, it is hotels that have felt this influx more than others - occupancy in many properties rises to 70% during the peak season, and the profitability of hotel properties in Tbilisi and Batumi is breaking new records.

Impressive numbers

Georgia's GDP grew by 10.5% in 2022 - an impressive rate that is directly attributable to the tourism revenues. In the same year, tourism brought to the economy $3.5bn. This amount is hard to imagine - even if you break it down to just overnight stays, you get a slice of a multi-million dollar pie for each coastal area or ski area! For comparison: in 2019, before the pandemic, tourist traffic was 19% lower, and revenues were a modest 700 million. So the pandemic did not kill the market, but only hardened it - the demand for hotel rooms in Georgia is now more stable and diverse.

Barrier-free shopping: foreigners on an equal footing with locals

One of the key chips of the Georgian property market is the openness to foreigners. Here there will be no situation when you will not be allowed to buy an apart-hotel by the sea Georgia or a room for rent just because your passport is not local. The Law "On the Status of Foreigners and Stateless Persons" allows you to freely own any property, except for agricultural land.

And the best part is, you can take out a mortgage on almost the same terms as the local ones. Mortgage rates in banks today are about 8-10% p.a., minimum down payment - 1.5 per cent. 40%. And if you invest in the hotel business in Georgia from $100,000. and above (e.g. buying a hotel room in Batumi or Tbilisi), one can apply for a residence permit.

Ultra-liberal taxes

Particular attention should be paid to tax policy. It is much milder than most European countries. For example:

• Total absence of property tax when owning real estate;
• 5% tax on resale income - If you sell the property less than 2 years after purchase;
• Zero per cent of profitsif you hold the asset for more than 2 years.

All details on taxes when buying a hotel in Georgia, including resort taxes property in Batumi or Tbilisi.

Choices and perspectives

The portfolio of offers is exaggeratedly huge: from apart-hotels floating above the sea to boutique hotel rooms in the historical centre of Tbilisi. New facilities are being actively built and commissioned - not only large franchises, but also local brands with interesting design and management.

The hotel room market in Georgia is going through a period of "big bang" right now: growing tourist traffic, business support, liberal legislation for foreigners and tax advantages make it extremely attractive for both experienced and novice investors. In fact, Georgian hotel property is becoming one of the most promising investment instruments in the region - All that's left is to choose your direction and take action!

Growth in tourism and demand

Georgia has been turning into a real magnet for tourists from all over the world for several years in a row - and this is not just a beautiful comparison, but a fact that is confirmed by both statistics and local business. Tourist flow to the country to exceed 7.4 million in 2024 - that's what the official Statistics Service of Georgia (Geostat). In 2019, that is, before the pandemic, the figure was 5.1 million. Think about it: in five years, the country has added more than two million new visitors annually, which means , demand for hotel rooms in Georgia has grown by more than 45%!

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Income dynamics: tourism drives the economy

As tourism grows, so does revenue - both for the industry itself and for the country as a whole. Tourism receipts exceeded US$3.5 billion in 2023. For a relatively small economy, this is a huge figure, accounting for 18.7% of the total GDP. It is not for nothing that the Ministry of Economy of Georgia has publicly recognised tourism as one of the key stimuli for the development and modernisation of the country, officially declaring it in their reports.. The Georgian capital and major resort cities such as Batumi were among the leaders in terms of growth in arrivals, followed by occupancy and room rates.

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Who comes to Georgia and why? The audience is getting wider and wider

Today, not only residents of neighbouring countries and CIS countries are coming to Georgia, but also more and more tourists from Europe, the Middle East and even Asia. According to the Georgian National Tourist Board, in 2023, 42% of foreign visitors will be Europeans, whereas previously the bulk were from Russia, Ukraine and Turkey. Tourists now seek not only beach holidays, but also ski slopes (Bakuriani, Gudauri), wine routes in Kakheti, gastronomic starts in Tbilisi and spas in Borjomi. This expands the range of seasonal destinations and ensures a more stable, year-round demand for hotel properties.

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Implications for the property market: shortage of quality supply

The increasing flow of guests means one thing. Batumi, Tbilisi, Kutaisi and leading resorts face a shortage of quality hotels, aparthotels and branded properties. Property owners in many new complexes honestly confess: the 2024 season showed record occupancy, and the average rental rate increased in some segments by 25%. As proof: the average annual occupancy rate of hotels in Batumi exceeded 62%, and on peak dates - up to 90%! The demand is especially high for first line resort properties by the sea, as well as hotel properties in Tbilisi with good transport accessibility.

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New trends: rising rates and improved service

Fierce competition and the desire of tourists to receive a high level of service lead to an interesting trend: growth in the number of branded hotels and new all-inclusive complexes with international names. Such investments in Georgia hotels allow not only to improve the quality of accommodation, but also to increase loyalty, and thus the average cheque per room. While back in 2018 a branded hotel - Marriott, Radisson or Hilton - was only found in major cities, today more than 15 franchises of well-known chains are being built in Batumi and Kobuleti.

The growth of tourism turns the purchase of a hotel room in Georgia from a risky decision into a truly promising investment. The higher the tourist flow and more diverse the audience, the more confident you feel as an owner of an investment asset. Georgia's hospitality industry continues to develop at the intersection of steady demand, competent state support and growing investment flows.

Ease of investment and conditions for foreigners

Perhaps the main thing that pleasantly surprises anyone who ventures into a buying a hotel room in Georgia - is the unprecedented simplicity and transparency of rules for foreign investors. There is no sense of "stranger", no barriers to entry, minimal bureaucracy - the state is clearly betting on a free capital market and the creation of a friendly investment environment.

Foreigners have almost absolute rights of ownership

According to the Law of Georgia "On the Status of Aliens and Stateless Persons" (read the original here), nationals of other States may buy any propertyother than agricultural land. Would you like hotel business in GeorgiaA holiday flat hotel by the sea or a flat overlooking the Kura? Easy! You do not need any special permits or licences to buy a hotel room or apartment, it is done directly through a notary and registrar - just like for Georgian citizens.

Reliability of turnover and transparency of processing

The purchase procedure is organised in the most honest and technological way: transactions are registered through the "House of Justice" (official resource), where all processes are automated - the buyer receives the property literally in 1-2 days, sometimes even within 1 hour, if you pay for fast registration! Moreover, the state guarantees full protection of property rights for foreigners (cf. National Public Registry Service), eliminating "squatting," double selling, or situations where you may be "forced" out of the deal.

Mortgage: convenience and flexible rates

It's also interesting that foreigners can get mortgage on residential or business property virtually on the same terms as the locals. In 2024, the standard terms from major Georgian banks are as follows:

• The loan rate is. 8% to 10% per annum in dollars, which allows for comfortable scheduling of payments
• The down payment is. 40% object value
• The simplest possible set of documents: passport, income certificate (sometimes only a bank statement)

Banks work directly with property developers and agencies: if you have decided to buy a hotel room to rent out, or you are considering investments in apartment hotel Georgiausually the whole procedure can be done remotely. TBC Bank is a popular choice among investors.

Residence permit for investment: simple and profitable

Another important plus: buying a hotel or apartment in Georgia from $100,000 allows you to qualify for the residence permit. This option makes such investments particularly relevant for those who look to the country as a home or a launching pad for family and business projects. The official procedure and requirements are at state consular portal.

Preferential taxes and a clear spending scheme

Special attention is paid to taxation. Everything here is simple and as honest as possible:

• 0% property tax regardless of citizenship
• 5% capital gains tax (if you resell the property in less than 2 years)
• 0% tax if the property has been in possession for more than 2 years - works for citizens of all countries

The details are on official website of the Georgian Revenue Service. Significantly, the tax system does not involve pitfalls: there are no hidden fees or compulsory insurance premiums.

Minimum entry threshold and no quotas

How nice to re-emphasise: for foreigners there are no restrictions on the number of objects to be acquiredThere are no quotas or "competitions". You have the right to buy not one, but ten rooms in a turnkey hotel in Georgia - you can build your portfolio in Batumi, Tbilisi or mountain resorts without fear of changes in the rules of the game or sudden sanctions.

Bottom line: Ease of investing in hotel rooms and hotel facilities in GeorgiaTechnological registration, transparent mortgage conditions, soft taxes and the possibility to easily obtain a residence permit - all this makes the country one of the best markets for foreign investments. And that is why the interest in investments in the hospitality industry Georgia is just gaining momentum now!

Hotel room rates by region: Batumi, Tbilisi, resorts

Have you ever tried looking for a hotel room to buy in Georgia in the early morning with a cup of strong coffee? Even a seasoned traveller is struck by the spread of prices - everything depends on the city, location, class of the object and, of course, the prestige of the brand. But despite seasonal fluctuations, the market has become much more transparent, and you can easily find both a premium apartment hotel by the sea in Georgia and a cosy boutique room for rent in the old town of Tbilisi.

Batumi: the flagship of the Black Sea coastline

Demand has been frantic in recent years, and. Batumi hotel property is practically "sold out" at the excavation stage. The most affordable option is small studio rooms in economy-class complexes: prices start at $55 000. For this money you will get an apartment of 25-30 sq.m. with basic finishing in the 2-3rd line from the sea.

However, it's the ones that are popular first-line facilitiesespecially with a view of the endless Black Sea coastline. Average price for a ready room in a branded aparthotel (Wyndham, Radisson) - from $110 000-150 000 for 30-40 sq.m., and premium residences with author's renovation cost up to $200 000 and above. The top apartment hotels managed by international chains often have waiting lists - so don't delay if you want to buy a hotel room in Batumi by the sea!

Tbilisi: the capital and the heart of events

In Tbilisi, the hotel property market is even more diverse. Minimum input for the purchase of a hotel or apartment room - $60 000-70 000 for 22-28 sqm in new complexes or within converted historic buildings.

Globally franchised properties (e.g. Marriott, Ramada, Best Western) - is the next level: the average cheque ranges from $120 000 to $180 000and sometimes even higher if we are talking about boutique hotels in the very centre. A separate trend is turnkey mini-hotels with their own management company: here the price range is enormous and can be as high as $350 000 for unique lots with antique finishes.

Mountain and balneological resorts: Bakuriani, Gudauri, Borjomi

Mesmerising nature and the booming popularity of winter and spa resorts raise the stakes every year. В Bakuriani и Gudauri prices for a hotel room for rent start at approx. $50 000and for branded apartment in a new project they're already asking for $85 000-130 000.

In luxury spa hotels in Borjomi, where apart-hotel investments in Georgia are popular, the cost of a lot ranges from $70 000 for small 25 metre rooms up to $200 000 for a holiday apartment with a panorama of gorges and mountain slopes.

Table: Comparative analysis of hotel room rates by region

Region	Economy level, $	Brand projects, $	Premium, $
Batumi	55 000 - 80 000	110 000 - 150 000	180 000 - 250 000
Tbilisi	60 000 - 90 000	120 000 - 180 000	200 000 - 350 000
Bakuriani	50 000 - 75 000	85 000 - 130 000	150 000 - 200 000
Gudauri	60 000 - 85 000	100 000 - 140 000	160 000 - 220 000
Borjomi	70 000 - 100 000	120 000 - 170 000	180 000 - 200 000

The cost depends on a number of factors

The price picture is influenced not only by location and brand, but also by the quality of service, seasonality of rent, view from the window, and infrastructure. For example, Tbilisi hotel property in walking distance from Rustaveli Avenue or Narikala Fortress is traditionally more expensive than similar lots on the outskirts. And the price for apartment hotels by the sea Georgia significantly higher in winter, when demand for mountain locations is at its peak.

For more information on the current cost, as well as information on ready-to-let hotels and permits, please visit the official page of the Georgian National Tourist Board.

Whichever region you choose - Batumi, Tbilisi or a mountain resort area - you can choose from the following. Pricing parameters are numerous, but the market is transparent and ROI (return on investment) remains one of the most attractive in the region. So investing in the Georgia hospitality business today is not just about style, but a real financial calculation.

Existing hotel properties (secondary market): occupancy and profitability

Looking at the secondary market of hotel rooms in Georgia, it is impossible not to feel like a real treasure hunter. Here you will find not only spacious lobbies with history and cosy restaurants where you can smell coffee from the namesake coffee blends, but also clear mathematics on profitability - which is exactly what a competent investor is looking for.

Room occupancy: where your money stays in deeds, not words

Let's start with the most important one: hotel occupancy rate - the main indicator of the real demand for the object on the market. The situation in the country is as follows:

• Average annual occupancy rate of conventional hotels Georgia is holding steady at the level of 30-37%. This indicator is typical for independent properties, economy-class apart-hotels and hotels without a big "name".
• Branded hotels operating under global franchises (Hilton, Wyndham, Marriott, etc.), show the occupancy 55-68% per year. In high seasons (summer at the sea, winter on the ski slopes) the figure quietly reaches 80-90%.

Conclusion: room owners in large or branded projects can count on a more stable and higher occupancy rate, and therefore a guaranteed income above the market average.

Guaranteed and actual returns: fair arithmetic

Secondary number sellers often lure buyers with promises: "guaranteed income of 5-7% per year". - this figure is indeed fixed in contracts with most management companies. The point is that regardless of the season, even if the room is not rented out, the investor receives the minimum amount indicated.

But the real picture is often more interesting: with good management and the right marketing strategy the yield of hotel property in secondary market can reach 15-23% per annum. This is, of course, subject to the demanded location and active utilisation not only in the peak, but also in the off-season. The first line hotels in Batumi, prestigious apart-hotels in Tbilisi and ski complexes win here - an additional plus to investments in the hotel business in Georgia.

Utilities and operating costs - all transparent

Interesting point: many management companies take care of not only finding tenants, but also most of the operating costs - from utility bills to room cleaning. You only have to pay % of the profit or a fixed fee (usually 15-25% from rent). Thanks to this system, even in the secondary market, you retain passive income from a hotel room with a minimum of hassle. For more information on the specifics of the tax and operational scheme, see Georgia Revenue Service website.

What's the catch? Risks and nuances

You cannot do without a "spoonful of tar". If you buy a room in a little-known hotel without a brand shop, outside popular areas (for example, not in the centre of Batumi or Tbilisi), over the course of a year, the occupancy can fail and up to 15-20%. This will lead to a rapid decline in the profitability of hotels in Georgia and delay the return on investment for years. It is important to analyse carefully:

• Facility Location;
• The rating of the management company and its actual experience (especially on Booking, Airbnb);
• Demand futurology - how will traffic in the region change if a new airport/road opens?

A prime example: the story of an investor

Olivia, an entrepreneur from London, bought a studio suite in a large complex on the coast of Batumi two years ago. The contract stipulated a minimum yield of 7% in the first year, but because of the high tourist flow and the work of the management company, the real income was almost 18.5%! And, according to her, all payments were made on time, and reports on load and expenses were sent to her personal account on the operator's website.

So: buying hotel rooms in Georgia on the secondary market is a reasonable bet for those who want to avoid construction risks and earn income immediately. The main thing is to choose a brand, evaluate occupancy statistics and critically approach the evaluation of sellers' promises. Success here, as in any hunt, favours the prepared!

New buildings and branded hotels: key projects 2024-2025

Georgia today is like a big construction site, where every second tower on the horizon turns out to be a future apart-hotel, and posters on busy streets lure with the loud names of global hotel giants. If you have ever wondered how to buy an apart-hotel in Georgia under an international brand or invest in a "star" project on the coast, 2024-2025 is the ideal time. This is the time when large complexes start to appear on the market, which turn the idea of resort property upside down: there is premium service, verified standards, developed infrastructure and, of course, investment security.

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Wyndham Grand Residences Batumi Gonio - the first all-inclusive of international scale

One of the most anticipated projects of the next few years - Wyndham Grand Residences Batumi Gonio. These are four sea-front towers, all under the Wyndham brand. The all-inclusive concept is being implemented here for the first time by an American group and Georgian developers - with above-average restaurants, spa, private beach, water park and the whole range of world-class services. It is noteworthy that 70% apartments have already been purchased at the construction stage by investors from the European Union, CIS and Israel.

• Starting price per apartment - roughly $120 000 for a finished studio;
• Room yields, according to Wyndham's forecast, - 18-22% p.a. with the right holidaymakers;
• Opportunity to purchase with franchise management (i.e. all service is outsourced);

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Marriott, Radisson, Hilton and new names in Batumi and Tbilisi

In 2025, several high-profile projects from top brands will appear on the market at once:

• Marriott Residences Batumi - apartments and hotel rooms on the first line (starting from $180 000): the entire complex is operated by Marriott, the official site;
• Radisson Blu Gudauri - The first ever franchise for skiers in Georgia, with service standards like in Europe: prices are not disclosed yet, but market expectations are no less than $130 000 for the key;
• Hilton DoubleTree Tbilisi - a business-class urban complex in the centre of the capital, with infrastructure for congresses and long-term stays.

The projects have already received licences from the Ministry of Economy and are on the official list of supported investments.

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Unique apartment hotels by the sea and in the mountains

Among the local "breakthroughs" are the following Alliance Privilege Batumi (main tower - 50 floors, record level of infrastructure) and Orbi Sea Towers (32 to 52 floors; co-operation with Radisson, Hilton, Best Western). Prices at the start - from $110 000-120 000 for a ready-made 30-35 sqm apartment with finishing and built-in furniture.
Interestingly, almost all of these complexes already work on the principle of "hotel under management" - you buy a room, and the management company fully takes care of the search for guests, delivery, service and accounting.

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Off-season resorts: Bakuriani Mountain Residences and Gudauri Peaks

Winter resorts aren't lagging behind either! Entering the market in 2024 Bakuriani Mountain Residences In Gudauri, three new complexes with all-season concept (swimming pools, spas and even-schools for children) are being built at once. These are facilities with a focus on stable occupancy all year round and higher yields than the city.

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Why is everyone chasing the brand?

A pronounced trend has been felt in the last two years: 39% investors and tenants are willing to pay significantly more for branded service. The average daily rental of branded rooms has already passed the $200which is four times higher than the average rate for independent properties.
As a result. hotel property in Batumi and Tbilisi, built in 2024-2025 to international standards, overtakes the secondary market by 30-40% in terms of yield and is much more liquid for resale..

Updates and official resources

You can follow the largest new buildings on the official page of the National Tourist Agency of Georgia, where fresh lots are regularly published, including offers for turnkey hotel complexes and apart-hotels by the sea.

Conclusion: fresh 2024-2025 projects are becoming the new standard for those looking for stability, guaranteed service and real opportunities to grow asset value. Investments in hotels Georgia at the start give a head start in terms of profitability, and convenient management conditions remove all everyday issues from the owner. There has never been a better time to enter the branded segment of hotel property!

Factors affecting the cost and profitability of a room

Buying a hotel room in Georgia is not just a "sip from the sea or a day with wine" choice. Your yield, capitalisation and profitability of hotels in Georgia are directly dependent on a multitude of factors that are staggeringly diverse and nuanced. Each of them can play a crucial role in how much your investment asset will actually yield.

1. hotel brand and management company

The name has a meaning. According to the latest research, 39% of potential tenants are willing to pay more for the brand alone - whether it's Marriott, Wyndham, Radisson or Hilton.

• Average daily rental rate for branded rooms - around $200 (and higher!) during the holiday season.
• In comparison, ordinary hotels without a big name rent out similar rooms for about $500 per room. $50-70.
• The management company in branded projects enters the market with well-established marketing, which guarantees a high average annual utilisation rate (55-68%, versus 30-40% at "local" aparthotels).

Conclusion: investment in a branded hotel in Tbilisi or Batumi means more income guarantees and higher liquidity of the object.

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2. Location (location, infrastructure, "sea view")

There's a golden rule at work here: location = money. The first line in Batumi with direct sea view or a room on the main street of Tbilisi is always more expensive than analogues in the back of the district by 20-40%.
Take note:

• Walking distance to the beach, parks, "old town" and key tourist attractions.
• Infrastructure development: availability of shops, cafes, transport.
• View from the window: sea panorama or "city view" in the centre of the capital noticeably increase the rental rate and resale price.

Example: hotel property in Batumi near the water - $110 000-150 000 for a studio, and in the neighbourhood "behind" - already $65 000-80 000.

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3. Class and level of service (all-inclusive, standards, additional services)

Investing in high-end hotel rooms yields multiples of that.

• All-inclusive, wellness and spa services, "family formats" with animation - all of which attracts guests with above-average budgets.
• Guests pay noticeably more for the opportunity to relax without the hassle.
• Brands impose strict standards on cleanliness, safety, nutrition - the result: the average cheque is 30-50% higher and reviews are more stable.

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4. Area, layout and condition of the room

State of repair and "stuffing" - the key to good profitability. The market demands fully furnished studios with kitchen, bathroom and modern interior.

• Basic studio 25-32 square metres. - optimal for renting and payback.
• Rooms with designer decoration and "features" (panoramic windows, balcony, Jacuzzi) are delivered faster and more expensive.
• The cost of repairs affects capitalisation (the difference between the purchase and sale price) - a good quality repair will increase the price by 10-15%.

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5. Seasonality and type of lease

The seasonality of renting in Georgia is an important nuance:

• On the coast of Batumi the demand soars from May to September (up to 90% loads), and in winter the mountain sector (Bakuriani, Gudauri) takes the lead.
• In Tbilisi, hotel room yields are stable year-round, especially in properties near the business centre.

Lifehack: new generation apart-hotels offer "hybrid" rental schemes - in summer you rent through Booking, in winter - directly to travel companies.

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6. Contractual terms and conditions and hidden charges

Carefully review the contract with the management company before you buy:

• The amount of the commission (usually 15-25% from income),
• Loading Guarantees,
• Settlement system (net payments or all-inclusive with utilities and tax deducted).
  The official rules and recommended sample contracts are on the Georgia ANPR public registry website.

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7. New or secondary market

• Aparthotels in new buildings brands just handed over - high price but rapid capex growth.
• Secondary market - already ready flow of clients and clear actual profitability, but more nuances on wear and tear and repair.

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8. State initiatives and tourism development

Finally, don't forget - government programmes on resort development, road construction, announcements of new flights directly affect the occupancy rate! You can follow the policy in detail on the website of the Investment Agency and the Ministry of Economy of Georgia.

Bottom line: The profitability of an aparthotel or hotel room in Georgia is always the sum of the parameters. Choose a brand, the best location, fresh renovations and understand your target audience. And don't forget: a proper calculation at the start will save you from disappointment in the future!

Comparison: hotel room vs ordinary flat

If you're at a crossroads - what to buy for passive income: hotel room or flatLet's break it down without embellishment. For investments in Georgian property, both formats have their own peculiarities. It is important to understand how passive income from a hotel room differs from a traditional flat rental, what pros, cons and pitfalls await each owner.

The main advantage: turnkey service in the hotel

Buying a hotel or aparthotel room in Georgia:

• You get a ready-made management companyThis is especially valuable if you are investing remotely or are rarely in the country. This is especially valuable if you invest remotely or are rarely in the country.
• Full service and no routine: no searching for tenants, no meeting with guests, no cleaning or repairs - everything is decided by the operator.
• Your income is considered "dirty" or "clean" (depending on the contract), and payments are made through transparent channels (bank services, e-wallets). The problem of non-payment or prolonged downtime is virtually non-existent - the network always has a flow of tourists.

Up-to-date lists of licensed hotels and management companies are published at official portal of the National Tourism Agency.

Conventional flat: more autonomy, less expenses

Investing in flats in Batumi or Tbilisi, especially in new residential complexes, has its advantages:

• Can be rented out long term to local tenants or travellers, or daily through Booking/Airbnb - there is a full choice of strategy.
• No commission of the management company (which is often up to 25% of income): your net proceeds are higher if you do the renting yourself.
• In the case of "partial season" (e.g. winter at the sea) a residential flat is less likely to be left empty - the demand is more stable than for hotel rooms in "low season".

But with that comes other "headaches":

• You deal with all service issues - overseeing repairs, settling accounts, organising move-in, finding new tenants.
• Taxation and reporting issues fall solely on you. Read more in the section of the Georgia Revenue Service.
• Restrictions on overnight stays for tourists may be imposed in individual houses (e.g. to protect the interests of permanent tenants, management companies sometimes prohibit day rentals).

Profitability: how much can you really earn?

On the latest analytics. Knight Frank:

• Hotel room or apartment hotel in Batumi/Tbilisi capable of bringing 12-23% annualised net incomeIf the facility is located in a top location, has high service and brand management. At the same time, the guaranteed minimum is usually 5-7% from the developer or management company.
• An ordinary flat - this 6-13% p.a. for long-term leases (especially in the centre of the capital), if you manage the property yourself and minimise costs.

• The benefits of renting out a hotel room are higher if the market is growing and the operator is known.
• The payback period for an aparthotel is often 1-3 years faster than for a flat.

Flexibility of use: personal accommodation and restrictions

The owner of an ordinary flat is the king and god of his property: if you want to live by yourself for months, if you want to rent it out. But in an aparthotel or a managed room, there are often restrictions:

• You can only use your room during certain "low seasons" or a strictly specified number of days per year (the terms and conditions are stipulated in the contract).
• Branded hotels, especially in the "investment for income" segment, usually do not provide for permanent owner occupancy.

Additional costs and management

• Flat: pay the minimum for utilities and taxes, all the "puzzles" are yours.
• Hotel room: part of the income goes to the management company, but there are fewer worries.

Summary table

Criterion	Hotel room/APART-hotel	An ordinary flat
Yield	12-23% (brand), 5-7% warranty	6-13% (independent control)
Management	Turnkey service, outsourcing	On your own or through an agency
Maintenance time	Minimum	Maximum (all on the owner's shoulders)
Flexibility of accommodation	Limitedly	Total freedom
Liquidity	Higher with branding	Depends on the neighbourhood, floor, housing
Seasonality	Strong (especially in resorts)	Low for long-term rental

Choosing between buying a hotel room and a flats in GeorgiaI'm gonna need you to focus on your goals: If passive income, a ready-made business project and minimal involvement are important - hotel property and a greater likelihood of "guaranteed income from the developer" will suit you better. If you like to control everything personally and are not afraid to immerse yourself in day-to-day management - a flat will give you more flexibility and prospects for capitalisation growth.

Turn doubts into a plus: calculate "on your fingers", compare the conditions on the hotel property portals or contact experts to estimate personalised returns. Think like an investor - and let your choice be not only profitable, but also comfortable!

Legal and financial aspects of the purchase

When it comes to buying a hotel room in Georgia or investing in hotel properties, it is important to go not only on the emotions of the sea and coffee, but also with a clear understanding of the legal and financial details. It is not for nothing that they say, "A passport opens the door, but documents firmly hold the keys to profit". Let's go through point by point what legal nuances are important, what you need to know about mortgages, taxes and expenses - so that everything is "clean", transparent and without hidden traps.

Registration of ownership: fast, transparent, online

This is where Georgia really surprises: the property registration procedure is one of the most transparent in the region!

• The transaction usually takes place through the House of Justice, where all the paperwork is completed on the basis of the sale and purchase agreement and proof of payment.
• You won't see multi-storey bureaucracy or "live" queues here: electronic queue, submission of documents in one window, and registration takes from 1 hour to 1-2 days.
• The ownership is confirmed by an extract from the National Agency of the Public Registry - a government document that guarantees that you are the sole owner of the property, including a hotel room or apartment hotel.
• All data is electronically protected: no "double sales", lost documents or fraudulent schemes. Even if you are not on site, you can authorise an agent or lawyer to register the transaction remotely.

Financial costs and fees for purchase

Plan your budget in advance so that every figure is in place!

• Notary services and state registration fee - usually not exceeding $100-200 (the exact amount depends on the value of the property and the urgency of processing).
• Services of an agency or legal advisor - typically 2-5% of the transaction value.
• Bank account opening costs (if it is your first time in the country; see websites for details and form for foreigners. TBC Bank or Bank of Georgia).
• Mortgage origination fees if you buy on credit - bank commission: often does not exceed 1-2% of the loan amount.

All mutual settlements on the transaction are made through bank entries only - which eliminates risks and gives security to both buyer and seller.

Rights and opportunities for foreigners

Ownership of hotel property for foreign citizens in Georgia is practically unlimited:

• You can buy any object - apart-hotel, hotel room, apartments for renting out (exception: agricultural land).
• The foreigner has the right to formalise the property solely, in a shared or joint form (for family investments).
• The purchase of a property with a value of $100,000 or more allows you to apply for a residence permit (TPL) for the whole family. Procedures and list of documents - on state consular portal.
• There are no limits on the number of properties or region - you can own a few rooms in Batumi or an apart-hotel in a ski location.

Mortgages and credit instruments

Foreigners, as well as Georgian citizens, can apply for a mortgage to buy hotel properties under transparent rules:

• Rate - 8-10% per annum in USD or EUR (fixed for several years in advance, current offers - at the TBC Bank и Bank of Georgia);
• Minimum down payment - 40% of the value of the property;
• The package of documents is minimal: passport, proof of solvency (certificate of employment or bank statement);
• The contract is drawn up immediately for the desired term - with the right of early repayment.

That means that even without having "the full amount in hand", you can start investing and become the owner of a hotel property in Batumi or Tbilisi.

Property taxes: simple and profitable

Georgia is famous for its ultra-liberal tax system for property owners:

• Property Tax - 0% (you do not pay annual taxes for owning an apartment hotel or hotel room, ownership status is irrelevant).
• At resale - 5% from the difference in price (if you sell earlier than 2 years after purchase). Keep a room or an apartment for more than 2 years - tax on profitability from the sale is zero!
• Rental income is taxed under a simplified system: the rate is only 5% on actual revenue. The taxpayer's online personal account is used to book the status.

Comparison table: What to look out for when buying

Parameter	Hotel room / aparthotel	Flat in residential housing
Ownership	100% private property	100% private property
Restrictions	No (other than land)	No
Mortgage for foreigners	Yes (8-10% p.a., 40% contribution)	Yes (similar)
Registration	Through the House of Justice, online	Same thing
Taxes	0% property, 5% on sale <2 years old	0% property, 5% on sale <2 years old
RESIDENCE PERMIT	There are from $100,000	There are from $100,000

Modern system real estate registration in GeorgiaSimple rules for foreigners and a clear tax model make the purchase of a hotel room or apartment hotel predictable and comfortable. A must-have tip - check the legality of the property at the stage of collecting documents! For final peace of mind, it is better to use the services of an accredited lawyer or agent.

A properly prepared transaction is a pledge not only of your protection, but also of a calm, guaranteed income for many years. Be careful, do not skimp on expertise, and then investing in Georgia's hospitality industry will make your success story as clean, transparent and profitable as possible.

Forecast and dynamics of the hotel investment market

Ask any analyst or experienced investor: the hotel room market in Georgia now resembles a scene from a Georgian bazaar - lively, unpredictable, but frankly growing and promising. In order not to find ourselves in the role of that guest who came for wine and left with nothing, let us consider what is really happening and what to expect for those who are seriously thinking about buying a hotel room in GeorgiaIn addition, we are investing in apart-hotels by the sea and investing in the country's hotel business.

Tour traffic is the engine of growth

According to the data GeostatBy the end of 2024, a record number of visitors will have visited Georgia. 7.4 million tourists. And the forecast for 2025 is even more upbeat: to +10% increase. These figures are not just beautiful abstractions, but a real indicator that seasonality is becoming less, and the tour business is moving out of the "summer only" or "mountain only" plane.
The Ministry of Economy declares the priority of tourism development as a key driver of GDP - every next billion "earned" through hotel services will settle in the economy and create a new wave of investor interest.

Construction dynamics: records and challenges

Georgia's perennial passion for construction has been given a new drive: in 2023, it will be issued to 26% (!) more permits for the construction of hotel propertiesthan a year earlier. Batumi is especially actively developing, followed immediately by Tbilisi, and even small resort towns are not lagging behind: Gudauri, Bakuriani, Kobuleti.

Leading hotel brands and major developers are expanding their presence. Marriott, Wyndham, Radisson projects are entering the market with dozens of new facilities, which causes the quality level of infrastructure, security and marketing to grow steadily. This fuels demand from international investors and increases the tourist attractiveness of the region.

Return on investment: reality and expectations

Buying hotel rooms in Georgia has shown consistently high rates of return over the past 3-5 years:

• Guaranteed yield under agreements with management companies - 5-7% per annum.
• Actual yield of top projects and brand-segment objects - 12-23% p.a.especially with proper positioning and work with the markets of Israel, EU and CIS countries.

And this is really unique for Eastern Europe - against the background of slower recovery or stagnation in Turkey, Montenegro, Bulgaria.

Local risks: competition and potential surplus

Not everything on the market is chocolate and nuts. Growth of new buildings in Batumi and Tbilisi can lead to "overheating" and temporary oversupply of hotel rooms. Already now in some districts of the capital there is a light competition for a tenant - especially among "zero-name" projects that cannot compete with international brands in terms of service and marketing.

Pay attention:

• Facilities without a brand or without a professional management company run the risk of lower occupancy in the off-season.
• Developers working "at speed" sometimes skimp on infrastructure and service.

A smart investor analyses the local market in advance: occupancy statistics, project feedback and development plans for the area.

Outlook 2025-2027: Where the market is headed

The trend is clear: the hotel property market in Georgia will continue to growThe government is investing in marketing, routes, air hubs. The government invests in marketing, routes, air hubs.

New brands are expected to strengthen their positions, unique hybrid hotel formats (workation, apart-hotels in mountain and SPA resorts) will appear, as well as the growth of smart room yield management services.

What does all this mean for the investor?

• Now is the golden window to enter hotel property in Georgia. On the five-year horizon, the price of entry will rise, but so will the level of service, the competition for the guest will reach a whole new level.
• Passive income from room stock will remain higher than flats in apartment complexes.
• Brands and complex projects with a strong management company winwhere the risks are many times lower than in the "fragmented" market.
• The challenge is to select a project with a proven track record, high utilisation and minimal operating costs.

In conclusion: The market is dynamic, lively and, despite the growing competition, remains one of the fastest paying investments in Eastern Europe. The main thing is to make investments not at random, but on a cool head, trusting only figures, proven brands and up-to-date analytics. Then your today's step will turn into passive income and financial freedom for many years to come!

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🔗 Useful links

1. Statistics
   On this site you will find official statistics on employment and unemployment in Georgia, which will help you understand the economic situation of the country and estimate the purchasing power of the population for property market analysis.
2. Ministry of Economy and Sustainable Development of Georgia
   Official news and analytical materials on economic development, including the property market, investment projects and legislative changes in this area.
3. National Register of Georgia
   You can check the ownership of a property, find out about encumbrances and obtain extracts from the public register.
4. TBC Bank и Bank of Georgia
   Georgia's largest banks for account opening, mortgages and money transfers.
5. Ministry of Foreign Affairs of Georgia
   The site provides official information on residence permits, how to obtain them and the necessary documents, which is important when buying a property to formalise legal residence status in the country.

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Conclusion

Today the hotel rooms market in Georgia is not just an investment trend, but a real chance for those who want to get income in dollars (or euros), avoid typical bureaucratic "quests" and at the same time provide themselves with a transparent, legal scheme of asset ownership. Are you convinced? The last step remains to be taken!

If you're dreaming buy a hotel room in Batumi, an apartment hotel by the sea or a hotel room for rent in TbilisiIt is not worth wasting time on doubts - the market dynamics and the interest of tourists speak for themselves. Our experts are ready to select for you a project with guaranteed profitability, compare options, calculate profitability and fully support the transaction from A to Z.

Simply leave a consultation request or ask for an up-to-date price and you will soon be the owner of an active, profitable and promising property in the heart of hospitable Georgia.