Investing in Serviced Apartments Managed by Hotels in Georgia

Why consider serviced apartments managed by hotels? 🏨

Serviced apartments managed by hotel operators combine professional hospitality services with private ownership. For investors this can mean a largely passive income stream, professional marketing and distribution, and higher occupancy compared with independent short-term rentals.

Key benefits ✅

• Passive income without day-to-day management.
• Professional guest services and higher booking visibility.
• Standardised maintenance and cleaning.
• Potential for combined personal use and rental income (check the contract).
• Access to hotel sales channels and loyalty programmes.

Main risks to watch for ⚠️

• Contract length and exit terms with the operator.
• Transparency of revenue reporting and real occupancy figures.
• Responsibility for repairs, refurbishment and insurance.
• Seasonality and local demand fluctuations.
• Financial stability and reputation of the operator.

How to evaluate property and operator — practical checklist 🔍

1. Check the operator’s track record: number of properties, guest reviews, and partnerships.
2. Request historical occupancy and revenue reports for at least one full year.
3. Clarify the revenue model: guaranteed rent vs revenue share.
4. Ask which costs are covered: utilities, housekeeping, marketing, repairs.
5. Confirm the rules for owner use (how many days per year) and blackout periods.
6. Have the management contract reviewed by a local lawyer.

Legal and tax notes for Georgia 📑

• Property ownership is registered through the national registry and is generally secure.
• Tax treatment can vary depending on whether you rent via an operator or directly; clarify who reports and pays taxes.
• Work with local accounting or property management to ensure compliance and proper invoicing.

Financing and expected costs 💶

• Initial costs include purchase price, closing fees and possible renovation to meet hotel standards.
• Budget for furnishing, decoration and ongoing replenishment of consumables.
• Check mortgage availability and terms in Georgia for residents and non-residents.
• Maintain a reserve fund for repairs and low-occupancy periods.

Due diligence essentials ✔️

• Visit the property and inspect finishes and building infrastructure in person.
• Speak with current owners or the building administration where possible.
• Assess the neighbourhood: accessibility, amenities, tourism trends and future projects.
• Verify legal status, encumbrances and easements in the property documents.

What to look for in the management agreement 📝

• Term, renewal and termination clauses.
• Frequency and format of revenue reports and payments to owner.
• Allocation of responsibilities for maintenance, replacements and insurance.
• Terms for personal use and how it affects income calculations.

Investor strategies and practical examples 🎯

• Conservative: fixed-rent contract for steady predictable income.
• Balanced: revenue-share with operator, allowing upside with good occupancy.
• Value growth: buy in emerging districts aiming for capital appreciation.

Final thoughts and next steps 🤝

Investing in serviced apartments in Georgia can provide a hands-off income stream and the security of professional management, but you must thoroughly vet the operator and contract terms. Do your due diligence and plan for seasonality and operational costs.

If you'd like personalised advice, contract review or a selection of suitable properties, contact us — we help investors find, evaluate and purchase the right property. Start searching at https://buyhome.ge/en/search or browse options on https://buyhome.ge/en.