Hotelium entered the next stage with its new property investment. Following our previous article, we found an excellent opportunity in the cosmopolitan Black Sea resort of Batumi, Georgia. It is not very likely that you’ve heard of this former USSR backwater before, but it is a fact that Batumi is experiencing rapid growth with many skyscrapers, hotels, malls and casinos. With its subtropical climate and endless pebble beach, it is emerging as one of the most attractive tourist destinations of the area. Especially it is becoming more and more popular in the high-value tourist segment, which is driving the development, entertainment amenties of luxury accommodations and gambling venues.
We partnered with the international investment firm Ruebush Hospitality Group which is constructing a series of boutique hotels on the hottest land property, surrounded by parks and gardens, minutes away from the beach. Momentarily, the area is one enormous construction yard with projects to be finished in a couple of years. Because of the unpredictable times, we were deliberately searching for something still in development. We don’t think the tourism sector will recover in season 2021. Therefore, we chose the premium River Park Hotel, which will open its doors in 2022/2023 and invested 108.000 euros in two units.
The five-star vacation hotel, placed along the New Boulevard, will offer 360 rooms, with a huge indoor and outdoor pool, climbing wall on the entire back of the building, mini-golf and rooftop bar among other activities. The fast-growing modern neighbourhood is created to lure wealthy clientele not only from bordering Armenia, Azerbaijan, Turkey and Russia but also from Europe. The Georgian Tourism Administration is determined to put Batumi on the bucket list of fresh destinations, and focus is on high-value European guests with the most spending power.
Our contract with the aforementioned Ruebush Group includes full service from their side, including managing, booking and a guaranteed minimum yield. We negotiated a return of investments also for the time of construction, therefore our promise for dividends for 10 per cent of the value of the property for the year 2021 is not jeopardized. We are truly happy with the overall deal and can hardly wait to visit this picturesque and lively place. It goes without saying that members of the Hotelium Club will enjoy special benefits in ‘our’ hotel.