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Newly Established Luxury Hotel Investment Opportunity in Batumi, Georgia

Exclusive opportunity to invest in a 5-star luxury hotel in Batumi's first Arabic hotel.
This Business is on a Premium Plan
Established 0-1 year(s)
Employees 50 - 100
Legal Entity Limited Liability Company (LLC)
Reported Sales Nil
Run Rate Sales Nil
EBITDA Margin Nil
Industries Luxury Hotels
Locations  Batumi
Local Time 11:50 PM Asia / Tbilisi
Listed By Management Member
Status Active
Overall Rating
Partial Stake Sale
USD 80 million for 70.0% stake (Native Currency: USD 80,500,000)
Reason: This is a reliable investment real estate, that provides higher profitability than market average, w... View More
Includes physical assets worth USD 115 million
Interested to connect with advisors
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Business Overview

- Exclusive investment in a 5-star luxury hotel & spa located in Batumi, with the backing of the hotel rooms registered in the buyer's ownership.

- Hotel will be operated by the hotel management cooperation under 20 years bidding legal agreement.

- The property is currently under construction and is expected to be completed within the next 2 years.

- Buyers can expect an impressive annual operational yield/profit of up to 17%, with a potential return on investment (ROI) of up to 14%. - Projection is validated by Cushman & Wakefield, neutral reputable party.

- The investment also offers the potential for up to 55% capital gain over a period of 3 years.

- There are no hidden costs or maintenance fees associated.

- The other areas of the property are already sold to various investors/buyers. Only the hotel rooms are available for investment currently.

- The hotel has a total of 27 floors, with 7 floors already completed, each floor containing 22 rooms of various types including king, twin, junior suite, 1 bedroom, and 2 bedroom options.

- Amenities include casino, restaurant, rooftop bar, gym & spa center, indoor & outdoor swimming pool, pool bar and lounge, private beach, business lounge, conference hall, wine and cigar boutique, garden and parking.

- The investor can to re-sell the hotel rooms at a price of USD 100k for 1 room.

- The buyer can choose how many rooms to buy. In total there are 546 rooms, our of which up to 380 are available for investors, while remaining would be kept by the developers.

Products & Services Overview

- On average there are 15x hotel beds per 1,000 visitor in the developed cities, Batumi has 5.3x beds, that indicates the market gap and potential of the hotel industry in Batumi.

- We see an increasing trend of tourists and investments coming from Gulf countries, at the same time there was no Arabic hotel brand in the country, thus we capitalized on this opportunity by bringing our brand in Georgia.

- Project feasibility and profitability is validated by Cushman & Wakefield, neutral reputable party.

Assets Overview

Exclusive right to use the Rotana brand in the region - intangible asset.

Project owns a land of 8000m2, on which there is ongoing construction, which is already on the 7th floor as of now, furthermore the company owns all the necessary construction equipment for completing the project.

Facilities Overview

- Own property area is 8000m2.

- Located on first line of the sea shore, with the cleanest sea in the region being in Gonio.

- Will have 27 floors in total, 7 floors are already completed.

Capitalization Overview

Business is fully funded by the private equity. There is no debt or obligation on the asset.

The vision is to expand the brand and make 2-3 more hotels with one targeted in Tbilisi, and another one on the ski resort.

There is 1 main shareholder, which is the development company.

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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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