15.Dec .2020 10:30

How Much Revenue did "Borjomi-Likani" Have Before the Pandemic?

How Much Revenue did "Borjomi-Likani" Have Before the Pandemic?
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JSC Borjomi Likani International is a state-owned 151-room hotel, before 2018 the hotel has been operating under the brand Rixos. The difficulties in the hotel started before the COVID-19 pandemic, according to the 2019 audit report of the company, "Borjomi Likani" suffered a loss of 9.9 million GEL in 2019.

According to the hotel's financial report, the facility earned a total of 11.4 million GEL in revenue last year, the figure was 0.4 million GEL up comparing to 2018. It is clear from the report that the loss of the hotel was related to the financial expenses of the company. Last year, the facility took out a new loan of 20 million GEL, while spent 9.2 million GEL on interest services. In total, the company owns a loan of 50.7 million GEL towards the Partnership Fund, and a loan of GEL 18.7 million – towards TBC Bank.

According to the report, the average occupancy rate of the facility in 2019 was 53%, while the number of guests during the year was 52,903. According to the document, the average daily rate (ADR) of the room during the year was 315 GEL.

The Partnership Fund, 100%-shareholder of the hotel, held the public auction on December 6, 2019 and starting price of the hotel was determined by 37.5 million GEL. However, the auction failed. The second auction was held on September 4, 2020 and price amounted to 30 million GEL, but the auction had failed as well, as there was no interest expression.