Introduction to Hotel Room Investment
Investing in a hotel room is based on a fairly simple principle: an investor acquires a room/rooms in a hotel complex. The hotel operator manages the property, while the investor receives income from the rental of hotel rooms, in proportion to his investment amount. This type of investment is a popular choice in Batumi, Georgia real estate, offering lucrative opportunities due to the region's growing tourism industry.
Key Aspects of Choosing a Hotel for Investment in Batumi
To maximize your hotel room profit, consider the following factors:
- The high value of renting rooms: It is beneficial for rooms to be rented at high rates, which guarantees an increase in income. This is a crucial element of Batumi property investment.
- High occupancy throughout the year: Ensuring constant demand for rooms ensures stable profitability of the property.
- Financial indicators based on the research: It is desirable that the project be evaluated by an independent research organization.
Selection criteria:
- Management company: Preferably, the object is managed by an international brand. Such brands have an extensive client base and wide opportunities for attracting tourists, as well as great experience that minimizes risks.
- Conclusion of the contract with the management company at the stage of construction: This is important, since the brand always has its own standards, and the construction of the object must comply with these standards in order to ensure a high level of service in the future.
- Infrastructure: Availability of necessary amenities both in and out of season (for example, open and closed pools, casino) will attract guests all year round.
- Location: The first line of the beach is usually more popular and allows you to rent rooms at higher prices.
- Investment justification: Having a transparent evaluation of the investment appeal of the property, backed by external research or the developer's past ventures, is crucial for evaluating the potential profitability of the investment. This encompasses metrics like return on investment (ROI), internal rate of return (IRR), yearly payback, average yearly pricing, and predicted occupancy rates. The lack of such substantiation could signify risks and a limited grasp of the project execution process.
Reduce the risks of investing in hotel rooms: External and internal factors
External factors:
- Economic and political stability of the country: It is important that the country has a stable economic and political situation, which provides predictability for investors.
- Stable growth of tourism: The presence of constant growth in the tourism sector creates favorable conditions for renting out rooms and ensures stable demand for real estate in tourist areas.
- High level of security: A secure environment in the region attracts more tourists and creates favorable conditions for investment. Internal factors (related to the developer) for hospitality investment:
- Availability of completed projects with a good reputation: The developer’s previous experience and success in implementing similar projects can be an indicator of reliability and quality.
- Possession of building permits and land ownership: Legal permits and land ownership provide legal protection for investments.
- Starting construction with own funds: Financing construction with your own funds allows you to avoid dependence on the speed of sales and minimize risks.
Differences between hotel rooms and other types of investment property.
In the market, rooms within apart-hotels or branded residences are frequently viewed as akin to hotel accommodations, yet notable distinctions exist. Hotel guests anticipate a specific standard of service, which necessitates suitable infrastructure and comfortable amenities.
Main differences:
- Lack of a kitchen in standard hotel rooms: One of the main sources of hotel income is the services of restaurants and room service. Having a kitchen can appeal to diners on a lower budget who prefer to save on in-room meals.
- Central heating and air conditioning system: Modern 5-star hotels do not have individual air conditioning. This is due to the fact that air conditioners can create excessive noise and do not always provide a constant comfortable temperature, especially during the winter when they are often unable to provide sufficient levels of heating. Instead, modern hotels use a centralized heating, air conditioning, and ventilation system that provides constant and equal levels of temperature and humidity in both summer and winter, regardless of whether guests are in the room or not.
- Year-round infrastructure and 24-hour room service: It is important that room service, restaurants, spas, and other amenities are available to guests all year round, regardless of the season.
- High Cost of Hotel Construction: Hotel construction usually requires significant costs, such as safety, soundproofing, energy efficiency, etc. Standards must be met to ensure comfort and convenience for guests. Only if all these conditions are met can a high level of service be guaranteed, which, in turn, increases the rating, occupancy rate, and average check of the hotel
Batumi Property Investment: A Unique Opportunity in the Real Estate Market
Pontus Rotana is the first 5-star hotel complex in Georgia, which will be managed by Rotana Hotel Management Corporation PJSC, well known in the hospitality sector from UAE. This is the first step of Rotana Hotels & Resorts in the region and Pontus is in charge of it.
A unique hotel complex consisting of more than 500 rooms, is located on the first line of the sea in Gonio, Batumi, and scheduled to open in 2027. With more than 700,000 active customers, mainly from the Gulf countries, Rotana promises not only stylish rooms, and high-quality service but also a first-class casino, which will be the first in the Rotana hotel chain and will ensure high occupancy even during the tourist "off-season". This development marks a significant milestone in the Batumi Georgia real estate landscape.
The hotel's infrastructure includes more than 700 square meters of spa, outdoor and indoor swimming pools, several restaurants and bars, including a rooftop bar, business lounge, children's area and this is just a small part of the amenities offered.
By proposing the Pontus Rotana Resort & Spa – Gonio project, Pontus Development strategically goes beyond the standard offers in the Batumi market, which is mainly focused on apartments and apart-hotels. This exclusive 5-star hotel complex represents a luxurious and stable investment opportunity that will add new dimensions of attractiveness and prestige to the region.
Learn more about the project, or subscribe to our YouTube channel and follow the construction progress.