The Tourism Development Fund, founded by Bidzina Ivanishvili, has been working on a high-end hotel project in Abastumani under the Paragraph brand since 2018. The resort was planned to have 140 rooms with a spa, pool, restaurant, conference hall, and rooftop terrace offering panoramic views. However, due to repeated delays and postponements in opening, the Fund has written down a significant portion of the hotel’s assets.
According to the company’s financial statements, the balance sheet value of Paragraph Wellness Resort & Spa, Abastumani (LLC Tsisartkela) dropped from GEL 68.7 million to GEL 4.4 million, representing a GEL 64 million impairment. The reduction reflects the property’s recoverable value, which is significantly lower than its book value due to delays in project completion.
An independent valuation by Ecovis Georgia Audit used discounted cash flow (DCF) analysis to estimate the resort’s value based on projected cash flows over five years and a terminal value. The analysis showed that the building’s recoverable value is only equivalent to the land’s market price, while the constructed assets generate a negative net present value, leading to the impairment recognition.
Despite multi-million investments from both private investors and the state, Abastumani’s resort development has faced long-term delays. The project’s official opening has yet to occur, and the hotel’s operational launch continues to be postponed, reflecting broader challenges in high-end tourism development in the region.
