Summary
The numbers
1 sourced
+8.8%
Georgian National Tourism Administration·31 Aug 2026
What to know
Demand is seasonal and geographic. Batumi fills in summer with visitors from Türkiye, the Gulf, Israel and the region; Gudauri and Bakuriani fill in winter; Tbilisi runs on city and business travel all year; Kakheti sells wine weekends. A hotel plan that ignores the calendar of its own location fails in the numbers before it fails in the market.
Three structures recur. Developing with an international operator under a franchise or management agreement, which brings distribution and a brand premium at the cost of fees and standards. Acquiring an operating hotel, where the price is a multiple of proven cash flow and the risk is the building. And branded residences with a rental pool, which sell units to individuals and keep operations with the developer.
What we check
- Land title and zoning, with the construction permit stage stated on paper, not in conversation.
- The operator agreement: term, fees, performance tests, termination.
- Seasonality in the pro forma, month by month, against the city's own data.
- Short-term rental rules in Batumi and building management in mixed-use towers.
Introductions
What an introduction gets you
- One introduction to a hotel developer, operator or owner we have checked, after a memo on the numbers.
- Lawyers and appraisers who have closed hotel transactions in Georgia.
- Operating hotels for sale and sites with permits, shared with the Circle first.
FAQ
Questions investors ask us
Where is the gap in supply?
Branded mid-scale and upscale outside Tbilisi: Batumi has towers but few operated hotels; the ski resorts have beds but little quality; Kakheti has boutique demand and small supply.
What ticket makes sense?
Acquisitions of operating hotels start around $2M to $5M; development with an operator runs from $10M. Branded residence units start far lower but are a property purchase, not a hotel investment.
Can a foreign company own a hotel and the land?
Yes, through a Georgian company or directly, for non-agricultural land. Agricultural land needs a different structure.
How are hotel profits taxed?
Under the standard regime: no corporate tax until distribution, 15% on distribution, 5% dividend withholding before treaty relief. VAT at 18% applies to room revenue.
Sources
2, all dated
Sources
- Georgian National Tourism Administration, Aug 2026
- Geostat, tourism statistics, Q2 2026