Georgia’s National Agency of State Property has relaunched electronic auctions for 10 former sanatoriums in the resort town of Tskaltubo. The auctions were announced on October 19 and will close on November 15. Investors must develop the properties within five years, meet specified investment commitments and establish modern hotels or rehabilitation centers.
Starting prices range from GEL 2.5 million to GEL 8.8 million. The properties include Medea, priced at GEL 8.5 million, with a minimum investment requirement of GEL 61.9 million; Megobroba, priced at GEL 8.8 million, requiring GEL 26.02 million in investment and a rehabilitation center with at least 100 beds; and Savane, priced at GEL 3.5 million, requiring GEL 35.31 million in investment and a hotel with at least 100 rooms.
Other properties include Inturisti (GEL 4.2 million), Imereti (GEL 4.6 million), Aia (GEL 3.7 million), Gelati (GEL 2.8 million), Geologi (GEL 2.5 million), Piliali (GEL 4 million) and Rkinigzeli (GEL 6.6 million). Their investment requirements vary, with projects including hotels of 80–120 rooms or at least 250 hotel rooms and apartments. The published terms do not specify an investment commitment or property area for Piliali.
Winning bidders must submit an unconditional bank guarantee covering at least 10% of their investment commitment before signing the contract and pay the purchase price within two months of the auction’s conclusion. Several properties have cultural heritage protections, existing occupants or easements, while utility networks and other infrastructure impose additional construction restrictions. Medea was previously returned to state ownership in 2024 after its former buyer failed to meet its obligations.
The auctions are part of the government’s broader effort to revive Tskaltubo’s resort infrastructure. The “New Life of Tskaltubo” project launched in 2022 after a 2019 pledge by former Prime Minister and Georgian Dream honorary chair Bidzina Ivanishvili to rehabilitate the resort’s hotels and bathhouses. Seven sanatoriums were sold under the project, but three later returned to state ownership. The latest auctions will test whether the government can attract new investors to redevelop the remaining properties.
