Georgia’s hotel industry remains largely unprofitable despite growing tourism revenues, according to Erekle Kokaia, Executive Director of hotel chain INN Group. Speaking on TV programme Tsertili, he said rising operating costs and an oversupply of hotel rooms continue to put pressure on the sector.
Georgia welcomed 4.4 million international tourists in the first nine months of 2026, up by 2.3% year-on-year, while international travel revenues reached $3.8 billion, increasing by 4.4%. However, Kokaia noted that revenue growth has not kept pace with rising costs and is now distributed among a much larger number of businesses.
He attributed low profitability primarily to hotel supply growing faster than tourist arrivals, warning that some companies could eventually leave the market if they are unable to meet their financial obligations. He added that Georgia needs more visitors across all market segments, particularly middle-income travellers, rather than focusing exclusively on high-spending tourists.
Kokaia also questioned industry-wide hotel price growth estimates, arguing that investment bank analyses often rely on data from just five or six international hotel brands, which represent only a small share of Georgia's accommodation market. According to him, prices at many independent hotels, particularly in Tbilisi, have not increased significantly.
