Over 300 New Hotels to Open in Georgia by 2028

The Georgian government has announced plans to open more than 300 new hotels by 2028, increasing the total number of hospitality establishments in the country by 13% to 2,680 facilities capable of accommodating approximately 143,000 guests, according to Vesti Kavkaza.

According to Spress.ge, which cites data from the National Tourism Administration, 324 hotels are expected to launch between 2024 and 2028, adding 18,778 rooms with a total capacity of 37,101 guests. Among them, 22 hotels will be branches of international brands, including locations in Tbilisi, Batumi, Abastumani, Sighnaghi, Kobuleti, Tskaltubo, Ganmukhuri, Borjomi, Sioni, Gurjaani, Martvili, and Oni.

According to PMCG, 17 hotels are set to open in Georgia in 2025, with several large-scale projects, including:
- Hilton Garden Inn Adjara and Hilton Tbilisi (200 rooms each)
- Hotel Sololaki Hills (188 rooms)
- Ambassador Batumi (182 rooms)
- Paragraph Golf & Spa Resort Tabori Hill (177 rooms)
- The most anticipated project is the launch of the Wyndham Grand Batumi Gonio hotel complex. This ambitious development includes 1,055 rooms across various formats—family residences, hotel townhouses, and luxury villas—with Georgia's first 5-star all-inclusive resort infrastructure. Such projects, offering units for sale, represent some of the most expensive real estate in the country, reflecting growing interest from global brands and private foreign investors in Georgia as a luxury, all-season destination.

Mid-Range Market Developments
In Batumi, Radisson Blu, Wyndham Residences by Next, and Pontus Rotana are slated for opening in the mid-range segment. However, investors in this category are adopting a cautious stance, as these projects are more sensitive to general market conditions compared to luxury developments. Despite this, prices for units in these properties continue to rise, albeit at a slower pace than in all-inclusive projects, indicating overall positive market dynamics.

A notable mid-range project is the Alphecca Batumi apart-hotel in the Mahindjauri district, offering pre-sale prices starting at $1,685/m². While the property boasts direct beach access, its proximity to railway tracks and industrial areas limits its pricing potential. Additionally, the poor condition of beaches in Mahindjauri remains a concern for investors.

Largest Commercial Projects
The Orbi City Mall in Batumi, currently under construction, is Georgia’s largest commercial real estate project. Covering 80,000 m², the mall will feature 6,000 m² of premium retail space and is set to be completed by 2026. Another significant project, Alliance Mall, is scheduled to open in Batumi in 2027. While these developments are expected to boost the area's tourism appeal and residential property prices, the simultaneous launch of two large malls might oversaturate the local commercial real estate market.

Government Investments and Tourism Growth
In 2012, Georgia had fewer than 800 hotels, while in 2024, the number approached 2,400, with a capacity for 108,000 guests, noted Prime Minister Irakli Kobakhidze. Over the past 12 years, the number of hotels has increased 4.5 times, reflecting the rapid growth of Georgia’s hospitality sector.

The government plans to allocate 1 billion GEL ($355 million) for hotel development by 2028, matching an additional 1 billion GEL in private investments. By that year, Georgia aims to attract 11 million tourists annually and generate $6.5 billion in tourism revenue.

Such forecasts are grounded in recent industry performance. In 2024, Georgia achieved record-breaking results:

Tourism revenue exceeded $4.4 billion, a 7.3% increase from $4.1 billion in 2023. For comparison, in 2019, tourism brought $3.4 billion, and in 2010, only $660 million.
International arrivals reached 7.3 million, with 5.1 million tourists among them.
Passenger traffic at Georgian international airports grew by 24% year-over-year to 7.4 million, with flights increasing by 25% to 31,937.
Strategic Outlook
Georgia’s hotel market is set for significant expansion, with high-profile projects catering to luxury travelers and mid-range developments addressing broader tourism demand. These investments will not only boost the country’s hospitality capacity but also position Georgia as a key global destination for both leisure and business travel. With record-breaking growth in tourism and infrastructure development, the outlook for the sector remains highly optimistic.