The five-star Hotel Paragraph, built by Tourism Development Fund on the Black Sea coast, has been officially opened in April 2018. To note, Tourism Development Fundis founded by Bidzina Ivanishvili, chairman of the Georgian Dream party.
The 220-room hotel belongs to the high-class franchise brand Autograph Collection.
Legally, the hotel management company is called Black Sea Resorts Group. The company has released its 2018 financial statements due to the extraordinary value of its assets.
According to the document, the total revenue of the hotel last year was 21,209,000 GEL.
By individual categories, hotel’s revenues are as follows:
• Proceeds from renting hotel rooms - GEL 13,504,000;
• Proceeds from the sale of food and beverages - GEL 6,720,000;
• Gain from Spa & Spa Center - GEL 839,000;
• Proceeds from operating lease - GEL 91,000;
• Proceeds from other hotel departments and other revenues 55,000 GEL.
According to the audited reports, the cost of services rendered was more than income and amounted to 31,583,000 GEL. The total operating loss of the company was 21,506,000 GEL and the full year loss was GEL 21,392,000.
According to report, the group pays a franchise fee to Marriott International annually. The fee is variable and depends on the rental income of the rooms. "During 2018, the expense was 1,026,000 GEL," the report said.
The total value of the hotel assets is 215,046,000 GEL.
