The program encourages entrepreneurs to build hotels in all regions of Georgia exThecept Tbilisi and Batumi by providing them with financial and technical support. Under the “Host in Georgia” program, the government subsidies 10% interest rate for loans in GEL and 8% for loans in USD/EUR for the first 2 years. In addition, the collateral guarantee for 50% of the total loan amount is provided in the first 4 years. The maximum loan amount can be GEL 5 million in case of International Franchise/Management Contract, and GEL 2 million otherwise. In case of international brand hotels, the government also co-finances franchising and management agreement fees of up to GEL 0.3 million annually for the first 2 years.
The “Host in Georgia” program has been very successful in developing the hotel industry in Georgia. Georgian government has already supported the development of 38 new hotels under the program, with a total investment volume of GEL 110 mln. As a result, 1174 rooms will be added to the Georgian hotel market. The new hotels are being built in various towns including Bakuriani, Gudauri, Kazbegi, Gonio, Shekvetili, and Tskaltubo.
Hotel in Bakuriani