პროექტი მომზადებულია COLLIERS INTERNATIONAL GEORGIA-ს მიერ

Hotels

1.

More than 80% of hotel room supply belongs to local midscale and budget hotels in Tbilisi, Batumi, Kutaisi, which probably will be exposed to the poor performance risk during this crisis. According to sector experts international hotels will be in highest demand because of the customers’ trust in the brand.

Among them chain branded midscale hotels are the quickest to recover as they are preferred by people who need to travel.

As for the international upscale and luxury scale hotels, they may face slower recovery trend. Specifically luxury will be the last to recover.

It is noteworthy that smaller hotels reach break even point more quickly but benefit less, while the larger hotels will benefit more after reaching this point.

Current supply of hotel rooms by class in Tbilisi, Batumi, Kutaisi, 2019
International upscale
International midscale
Local midscale
Budget

2.

In Georgia, highest supply of the hotel rooms by resort types are on the seaside, which also can be affected by the lower tourist flows this summer.

Looking at Batumi Hotel data local midscale and budget hotels are about 83% of the total supply, which may perform poorly in case the borders with neighboring countries will not open. They would be fully dependent on the local tourism. As a general trend international midscale hotels will perform better, however their share in the total supply in case of Batumi is only 8%.

Current Supply of hotels and hotel type accommodations by resorts types, 2019

3.

Future supply of international hotel rooms in Tbilisi, Batumi and Kutaisi exceeds 5,000 rooms. Their supply was planned between 2020-2023 years.

As the development process takes around 2-3 years and sometimes more, the hotels which are in the planning or initial construction process, have the opportunity not to hinder processes and continue building. They are most likely to enter the market with new hotel at the time the crisis is fully manageable or finished.

Future supply of International hotel rooms in Tbilisi, Batumi, Kutaisi; 2020-2023

Expectations and opportunities

The total expenditure of Georgian residents outside Georgia amounted to GEL 2 billion in 2019, with an average spend of GEL 877 per visit (Source: GNTA). It is possible to partially channel these funds into domestic tourism, which will be a significant help for the local hotel market.
In order to remain competitive on the market in pandemic conditions, hotels will need to equip themselves with sanitary apparatus, and will need to meet all sanitary standards to avoid spreading the virus. The use of sanitary robots to disinfect areas is becoming an increasingly common method for meeting sanitary demands. Online marketing and fresh deals for all customers will be very important for hotel operations.
Experts expect the industry to adapt with high-technology and self-service, as a result of which physical communication will be reduced significantly.
In parallel to distancing culture, buffet style restaurants also require to ensure 2-meter distance between tables, which will reduce total number of covers. Apart from that hotel visitors may prefer to have breakfast privately rather than in common spaces. Therefore we recommend hotel operators to enhance direct room services in case of breakfast too.