Georgia is continuing to develop its hospitality infrastructure by developing the mid-market hotel sector.
Local property development company m2 Residential LLC received a $7 million USD loan package from the International Finance Corporation (IFC), a member of the World Bank Group, to fulfil fund and build a new mid-range hotel.
The real estate development company will use the funds to build a 152-room Ramada Encore Hotel in Georgia’s capital Tbilisi. This will be one of the first three-star internationally branded hotels in Georgia and will help to create jobs, meet growing demand for quality hospitality infrastructure and spur broader economic growth.
Building on our successful cooperation with IFC over the years with this new project we plan to contribute to improving Georgia’s hospitality infrastructure and cater to the growing demand for travel in the country,” said m2 CEO Irakli Burdiladze.
Overall m2 planned to build more than 300 affordable hotel rooms in Tbilisi and, potentially in other cities of Georgia. In addition, the hotel planned to use energy efficient technologies to reduce power use.
We are helping develop Georgia’s private sector, particularly for business infrastructure, like this budget and mid-market hotels, because the availability of such infrastructure can boost business and tourist activities,” said IFC regional manager for the South Caucasus Jan van Bilsen.
The new Ramada Encore Hotel in Tbilisi was expected to create more than 100 direct and indirect employment opportunities.
This was not the first loan m2 property development firm has received from IFC. Last week IFC provided a $23 million USD loan package to the company to build around 1,800 apartments in Tbilisi.
These apartments would be built to meet top environmental standards and were expected to increase the efficient use of energy, water, and materials to reduce negative impacts on health and the environment.