More than 80% of hotel room supply belongs to local midscale and budget hotels in Tbilisi, Batumi, Kutaisi, which probably will be exposed to the poor performance risk during this crisis. According to sector experts international hotels will be in highest demand because of the customers’ trust in the brand.
Among them chain branded midscale hotels are the quickest to recover as they are preferred by people who need to travel.
As for the international upscale and luxury scale hotels, they may face slower recovery trend. Specifically luxury will be the last to recover.
It is noteworthy that smaller hotels reach break even point more quickly but benefit less, while the larger hotels will benefit more after reaching this point.