Georgia Capital PLC (the “Company” or “GCAP”) announces the sale of three assets of its hospitality business: (1) two operational hotels in Tbilisi, currently managed under the Ramada Encore brand and (2) a vacant land plot. The aggregate consideration received from the transactions amounted to US$ 28 million and will be utilised to deliver the hospitality business’s balance sheet. Accordingly, the net debt of the business will decrease by 76%, from US$ 37 million as at 31 December 2022 to US$ 9 million. The sales have no impact on GCAP’s last reported NAV.
Following the sales, the hospitality business will retain various assets, including one operational hotel managed under the brand name “Gudauri Lodge” and three hotels at different stages of construction progress in addition to several land plots in Georgia. Coincidently Gudauri Lodge has been mentioned in a recent New York Times article1.
Irakli Gilauri, Georgia Capital Chairman and CEO commented: "I am pleased to announce the successful completion of these disposals from our hospitality business. The transactions mark further progress towards our strategic priority to divest, over the next few years, subscale portfolio companies. At the same time, the significant cash proceeds from the sales will improve the hospitality business’s leverage profile, in line with Georgia Capital’s wider deleveraging strategy."
