Sales at Kazbegi-based hotel STEP INN fell sharply during the first five months of 2026, with founder Ani Alibegashvili telling BM.GE that the property experienced one of its most difficult years to date. She attributed the decline to severe weather and repeated road closures on the route to Kazbegi, which prevented visitors from reaching the region and led to widespread booking cancellations.
According to Alibegashvili, hotel occupancy stood at just 20–22% during both the winter and spring seasons. April was particularly challenging, as the road to Kazbegi remained closed for 13 days, disrupting travel plans and forcing guests to cancel reservations. Over the past two weeks, however, bookings have begun to recover as access to the region has improved.
Around 60% of the hotel's rooms are already booked through the end of September, although demand is now being driven primarily by group reservations from tour operators rather than individual travelers. Alibegashvili also noted a sharp drop in visitors from Israel, whose share of the hotel's guests declined from around 60% last year to 25% this season. Meanwhile, the share of Russian visitors has remained stable at about 15%, while arrivals from the UK, Poland, Germany and other European countries, as well as domestic tourists, have increased.
Given the uncertain business environment, STEP INN has no immediate plans for new investments and is instead focused on retaining staff and maintaining service quality. The hotel currently employs 17 people and is recruiting additional workers. Room rates have remained unchanged this season, ranging from GEL 280 to GEL 450 per night, including VAT and breakfast. The hotel was built in 2023 with a €2 million foreign investment.
