GC FUND

Hospitality and Real Estate

The Hospitality and Real Estate sectors are some of the fastest growing in Georgia. Since 2006, the number of international visitors to Georgia has increased over 800%, reaching 6.4m people in 2016. After witnessing a further 10% growth in Q1 2017, we believe that this trend will continue in the coming years.

The growth in the number of visitors is driven by improved infrastructure, a low crime rate and an increased awareness of Georgia following an international promotion campaign. Over the last decade, airline connectivity has significantly improved, with three international airports and four local hubs now in operation. Several new international hotel operators have entered the market, and others are set to join them in the coming years.

We plan to tap into the growing hospitality and real estate market by developing a portfolio of hotels across Georgia. We will also consider developing leisure, entertainment and commercial facilities to diversify our position within this sector further.

OUR APPROACH IN SECTOR

We plan to tap into the growing market of hospitality and real estate by developing a portfolio of hotels across Georgia. To further diversify within this field, we will also consider the development of leisure, entertainment facilities and commercial facilities.

The Fund will focus on investing in the following categories of projects:

Hotels located in Tbilisi
  • Type of hotel: upscale, midscale and economy
  • Portion of sector portfolio: 35%
Seaside hotels
  • Type: midscale and luxury hotels
  • Portion of sector portfolio: 20%
Mountain and alpine ski hotels
  • Location: Gudauri, Bakuriani and Svaneti regions.
  • Type: midscale and economy hotel
  • Portion of sector portfolio: 15%
Spa hotels
  • Location: Tskaltubo, Akhtala and Borjomi
  • Type: midscale and one upscale spa hotel
  • Portion of sector portfolio: 10%
Regional hotels
  • Location: regions with rich cultural heritage (Kakheti, Imereti, Kartli, Racha etc.)
  • Type: midscale and economy hotel
  • Portion of sector portfolio: 10%
Various leisure, entertainment and commercial facilities
  • Type: diversified class of real estate assets complementary to hospitality and real estate sector
  • Portion of sector portfolio: 10%

ONGOING PROJECTS

  • Axis Towers

    Total Investment Size: US$ 83 M

  • Galleria Tbilisi

    Total Investment Size: US$ 90 M

  • Hotel on Freedom Square 7*

    Total Investment Size: US$ 100 M

  • Hotel Sololaki Hills 5*

    Total Investment Size: US$ 100 M

  • I Hotel at Erekle II Square N3, 5*

    Total Investment Size: US$ 10 M

  • II Hotel at Erekle II Square, 5*

    Total Investment Size: US$ 60 M

  • Paragraph Resort & Spa Shekvetili

    Total Investment Size: US$ 90 M

  • Hotel Ganmukhuri 5*

    Total Investment Size: US$ 60 M

  • Wellness and Spa Resort at Green Cape, 5*

    Total Investment Size: US$ 110 M

  • Tabori Recreation and Golf Resort

    Total Investment Size: US$ 60 M