Pricing Policy in the Georgian Hotel Sector

Pricing Policy in the Georgian Hotel Sector

access_time2017-09-25 13:28:57

An interview with Regional PR & Marketing Director at Cushman & Wakefield Georgia Nino Rukhadze

Today Georgia sees a real hotel construction boom of both international and local brands. What is the reason for such a rise in investors' interest in the hotel industry of Georgia?

First of all, this is due to the growth of the economy and the right PR campaign, which Georgia conducts  in various countries of the world to promote  the country's tourism potential. This is the main driving force behind the growth of the tourist flow in Georgia.

Interest in the hotel business is growing along with the growth of the tourism industry.

How important is the value of hotel rooms and their capacity for investors, on which their revenue directly depends? What is the pricing policy in the Georgian hotel business?

The average cost of rooms in hotels of major global brands is $ 177 per room, in medium-sized hotels - $ 120-130.

the government has set the goal of increasing the number of beds in the hotel sector by another 10,000, and if it fulfilled, competition in the industry will grow significantly, and developers and hotel operators will have to adjust their pricing policy.

It can often be heard that hotels in Georgia are very expensive, both for locals and foreigners despite  the number of beds amount to 27,000. Will  another 10,000 hotel beds  change a situation in the hotel sector ? What hotels are planned to open in the near future?

InterContinental, Radisson Telegraph, Park Inn Radisson, Hilton, Hilton Garden, Moxhe, Ramada and others are set to be opened in Tbilisi. Sheraton Metekhi will also start operating after the completion of  rehabilitation works.

As for the regions, Golden Tulip will be opened in Telavi, in Kutaisi, Batumi and 16 other cities Best Western hotels will be built. Thus, new hotels of  both local and international brands will be launched  not only in Tbilisi, but also in the regions.

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