On February 27, 2015 Adjara Group Hospitality (AGH), European Bank for Reconstruction and Development (EBRD), and Bank of Georgia signed a $24 million loan agreement on financing of a five star luxury InterContinental hotel project, the leading brand of the Intercontinental Hotels Group (IHG).
This is the first “Manchise” project that AGH launched with IHG back in March 2014, which envisions management of the hotel by IHG for 3 years, later granting management rights under a franchise agreement to Adjara Group Hospitality, the largest and the most rapidly-growing holding company in the hospitality industry in Georgia that brings together hotels Holiday Inn Tbilisi, Rooms Tbilisi and Rooms Kazbegi as well as the ongoing hotel construction project Crowne Plaza in Batumi.
InterContinental Tbilisi hotel will be located in the very heart of the city, on Merab Kostava Street 14, in the historic building of the former State Publishing House with 27’000 square meters of space, where 259 hotel rooms will become available upon project completion.
The hotel will also have luxury suites (including Presidential), indoor and outdoor swimming pools, an international brand SPA center, a restaurant, lounge, club lounge, event space, exhibition space, and 4 conference halls. The Jestico + Whiles Company has designed interior of the hotel.
“EBRD is delighted to be part of this important for Tbilisi project. Jointly, with our long-standing partner Bank of Georgia, we are glad to support a local investor, with a creative zest, that has established a successful working relationship with an international leading brand, Intercontinental Hotels Group.
The opening of the Intercontinental hotel will raise further the standards in the Georgian hospitality industry, will create new jobs and increase even more the appeal of the city for tourists and business people. Tbilisi, a delightful city in a beautiful country, has been always enjoying the attention of the tourists from around the world, and now with the increased inflow of tourists, the internationally-branded high quality hotel, such as Intercontinental, will be an important boost for the hotel industry of Georgia and the further development of the tourism sector.” Said Bruno Balvanera, EBRD Director for Caucasus, Moldova & Belarus.
Bank of Georgia, a leading Georgian bank was first to commence financing of the hospitality industry in Georgia. As of 31 December, 2014 hospitality sector loans book amounted to GEL 132.1mln.
The total project budget is $53 million, which Adjara Group Hospitality will finance as a result of an agreement with EBRD and Bank of Georgia.
At this point, 150 people are employed at the construction project and up to 350 people will be employed at the hotel after its opening in early 2016.