Investing in Georgia's Hotel Business: Practical Guide

Why invest in Georgia's hotel business now? 📈

Georgia combines growing tourism, diverse destinations and relatively flexible business environment, which creates opportunities for investors in the hospitality sector. Whether you aim for seasonal beach tourism or year-round city demand, a well-chosen project can offer both operating income and capital appreciation.

Types of hotel projects 🏨

• Guesthouses and boutique B&Bs — lower entry costs, good for hands-on operators and small teams.
• Aparthotels — flexible income streams from short- and long-term rentals, popular in resort and urban areas.
• Full-service hotels — higher investment and operational complexity, suitable for experienced investors or partners.

Decide if you want to manage the property yourself or partner with an experienced hotel operator.

Location matters: pick the right market 📍

• Black Sea coast (Batumi and nearby resorts) — strong summer demand, attractive for aparthotels.
• Tbilisi and regional centers — steady year-round demand from business and leisure travelers.
• Mountain and spa areas — attractive for seasonal tourism and nature-oriented guests.

Assess accessibility, nearby attractions and infrastructure when choosing a site. Seasonality and local events can strongly affect occupancy.

Financing and deal structure 💼

Common approaches include:

• Buying an existing hotel with operating history.
• Investing in a project at development stage (pre-sale or joint venture).
• Franchise or management agreements where investors provide capital and operators run the business.

Clarify revenue sharing, capital expenditure responsibilities and exit terms in contracts.

Operations: DIY vs outsourcing 🛎️

Running a hotel requires bookings, housekeeping, customer service and marketing. Options:

• Hire a local hotel manager or team.
• Contract a professional management company to run daily operations.
• Use technology (PMS, channel managers) to streamline bookings and revenue management.

Outsourcing reduces headaches but also your operational control and margin.

Legal and tax considerations 📝

• Verify land and property ownership thoroughly.
• Check local licensing requirements for lodging and hospitality.
• Understand corporate and VAT implications for hotel operations.

Work with local lawyers and accountants who know tourism regulations in Georgia.

Risks and exit strategies ⚖️

Main risks include seasonality, fluctuating tourist flows and unexpected costs. Prepare multiple scenarios:

• Hold and optimize operations for long-term returns.
• Reposition property with renovation or a new concept to increase rates.
• Exit through sale after improving KPIs and occupancy.

Maintain reserves for slow seasons and unforeseen repairs.

Practical checklist before buying ✅

1. Market analysis and demand study in the target location.
2. Legal due diligence and title search.
3. Verify historical occupancy and ADR if buying an operating hotel.
4. Budget for renovation and working capital for initial months.
5. Operations and marketing plan, including OTA strategy.
6. Insurance coverage and contingency funds.

How BuyHome helps 🤝

BuyHome supports investors with market research, property sourcing, legal checks and negotiations. Start your search at https://buyhome.ge/en or contact us for a tailored consultation. We guide you from idea to opening day and beyond, helping choose the right structure, partners and management model.

If you are ready to explore options, contact us — we will help you evaluate opportunities and prepare a step-by-step plan for investing in Georgia's hotel business.