In 1Q18, real estate business, m2 , sold 53 apartments with a total sales value of US$ 7.7mln reaching the highest ticket price per apartment in the history of m2 , compared to 143 apartments sold with total sales value of US$ 10.1mln in 1Q17 and 165 apartments with a total sales value of US$ 14.5mln in 4Q17.
In 1Q18, m2 achieved the first milestone in its hotel development strategy and opened its first hotel in Tbilisi (the “Hotel”) under the Ramada Encore brand.
The Hotel has a capacity of 152 rooms and will cater for the needs of the rapidly growing market for budget travellers in Georgia. During the first incomplete month of operation in March 2018, the Hotel’s occupancy rate stood at 29%. m2 has invested US$ 14mln in Hotel development, including the land.
In 1Q18, m2 acquired an 8,512 square metre land plot in Telavi, Kakheti region for a total cash consideration of US$ 1.5mln (excluding VAT) to develop a hotel with approximately 130 rooms. The hotel construction will be carried out by m2 ’s construction arm. Telavi is the largest city in eastern Georgia and one of the major tourist destinations. The acquisition is in line with m2 ’s hotel development strategy to reach a capacity of 1,000 hotel rooms and capitalise on growing tourist inflows in the country.
