Kempinski Hotels has signed a management agreement with m2 at Mtatsminda LLC, a wholly owned subsidiary of JSC m2 Real Estate, to open a luxury hotel development in Tbilisi, the country’s capital city.
The property, which is expected to have at least 95 rooms and suites, is set to open in Q3 2020 at the foot of Mount Mtazminda. The hotel will be the company’s first in the country
The region has been attracting the attention of hotel companies with several new signings in Georgia in recent months—notably Radisson and IHG—and global brands are looking to gain ground in the Central European nation.
“There’s been a huge amount of attraction in Georgia over recent years, certainly from a gaming perspective but also from a business and a leisure perspective as well,” said Thomas Emanuel, director at data and analytics company STR, noting the numbers might belie that attraction: Occupancy declined in Tbilisi last year and rates were flat. “But that’s really a supply-driven decline because supply was up 10 percent in Tbilisi in November 2018 year-to-date,” he said.
Georgia on Their Minds
“Following our 18-percent pipeline growth last year, I am very pleased to announce that we continue this positive trend in 2019,” said Bernold Schröder, vice-chairman of the management board/COO Europe of Kempinski Hotels. “With the number of key differentiators, including our exclusive location, high suite ratio, large number of rooms with private terraces and the limited number of keys, I am confident that we will swiftly become market leader in our segment.”
The hotel is expected to have some of the largest guestrooms in the city at a minimum of 40 square meters each. Public spaces will include a rooftop terrace, several restaurants, a wine bar built into the mountain, a lobby lounge, a cigar lounge and a club area. Additional leisure facilities, including a pool, sun deck, a fitness center and a 500-square-meter spa.
“We are extremely pleased to partner with Kempinski Hotels for this impressive luxury project. Kempinski is world-renowned for its expertise in managing premium residences and hotels. Together we will take luxury experience in Tbilisi to new levels,” said Irakli Burdiladze, CEO of JSC m2 Real Estate. “Our approach will see this property not only attracting guests from Georgia’s closely located Eurasian or neighboring countries such as Turkey or Russia—markets where Kempinski Hotels has already a strong brand reputation—but also for global visitors who are looking to be delighted by the city. In this respect, we are proud to be able to support Tbilisi’s efforts to establish the city as a real leisure destination with a focus on heritage sights, gastronomy and culture.”
Tbilisi got a Moxy in June and the city’s pipeline includes a Radisson Red, slated to open in late 2020.