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BGEO buys 50% stake in Tbilisi boutique hotel for $4.1m
BGEO Group's real estate subsidiary, m2 Real Estate, has acquired a 50% stake from a third-party in an upcoming lifestyle boutique hotel in Tbilisi, the capital of Georgia, for $4.1m.
It also has an option to increase its shareholding to 60% stake by investing $1.9m into the hotel's capital. The hotel is located on Mtatsminda hill - a neighbourhood which BGEO said has one of the most spectacular panoramic views of the capital - and the deal is expected to add at least 100 rooms to m2's portfolio.
The hotel construction works are being carried out by the company's construction subsidiary. The skeleton of the building is already finished and completion due in the first quarter of next year. BGEO said that with its a focus on the concept of wine and fine dining, the hotel is expected to attract a growing number of tourists, as well as the affluent local population.
Chief executive officer Irakli Gilauri said: "I am delighted to see that m2 Real Estate continues to demonstrate an impressive advance in the hospitality business - one of the core pillars of its strategy. With the tourism growing 27% in 2017, we believe this sector has high growth potential in future. m2 continues to seize the right momentum to capitalise on the very attractive business environment and extend its hotel portfolio."