Hotelier and founder of the Hotels Federation Shalva Alaverdashvili expects the trend of hotel property sales in Georgia to continue. He said the sector has struggled to recover since the 2019 “Gavrilov’s Night” events and the COVID-19 pandemic, while a rapid increase in hotel capacity, higher operating costs and shrinking profit margins have added to the pressure.
Alaverdashvili, who currently manages nine hotels in Tbilisi and the regions, said demand from owners looking to sell is already evident. He told BMGTV’s “Tsertili” that he had met with two hotel owners just before the interview, both of whom asked for help selling their properties and were ready to put them on the market after the tourist season ends in late October.
According to Alaverdashvili, hotel supply has grown much faster than visitor numbers. As competition intensifies, hotels are struggling to generate sufficient revenue, while payrolls and other operating costs have risen sharply over the past three years. As a result, profit margins that once made the sector attractive to investors have largely disappeared.
He also expects the trend of converting hotels into other types of properties, including banks, offices and clinics, to continue. However, he said such changes are less visible during the peak summer season, when owners focus on generating revenue, and that the situation will become clearer during the off-season. Alaverdashvili added that the sector remains vulnerable to unexpected developments that could affect tourism.
