Hospitality and Real Estate sector is one of the fastest growing sectors of the Georgian economy. Since 2000 the number of visitors increased 13 times reaching 5.4mn in 2013. Based on the Georgian National Tourism Agency (GNTA) data, we believe that the high growth rate will be maintained in coming years.
Significant growth of number of visitors is driven by improved infrastructure, low crime rate and increased awareness of Georgia via international promotion campaign. Over the last decade airline connectivity has significantly improved. There are three international and one local airports in Georgia. Several international hotel operators have entered the market including: Radisson, Sheraton, Marriot, Holiday Inn, etc. Kempinski, the construction of Hyatt and Hilton hotels are also underway.
The majority of international arrivals came from the neighbouring countries. Turkey accounted for 35% of total international arrivals, followed by Azerbaijan 21%, Armenia 20% and Russia 12%. According to the GNTA, mostly tourists visit Georgia for leisure and recreation.
Even though the sector has already experienced high growth rates and attracted investments over past years, we believe there is still a significant growth potential in hospitality and real estate sectors, especially in mid-scale and budget segments.
Our plan is to tap into the growing market of hospitality and real estate by developing portfolio of hotels across Georgia. In order to further diversify within this field we will also consider development of leisure, entertainment facilities and commercial facilities.
The Fund will focus on investing in the following categories of projects: