Batumi, Ajara, Georgia

Sky Inn Hotel - Premium 4-Star Investment Opportunity in Batumi, Georgia

Overview

We are delighted to present an exceptional opportunity to acquire a premium 4-star hotel property in the heart of Batumi, Georgia - one of the region's fastest-growing tourism and investment destinations. The Sky Inn Hotel, offered at $3.6 million (full cash, with immediate title deed transfer), delivers an award-winning hospitality experience from the prestigious 25th floor of a landmark mixed-use building with mall integration.

This is a turnkey investment offering consistent high returns, strategic location advantages, and strong capital appreciation potential. With coastal hotel licenses frozen until 2026, Sky Inn represents one of the last chances to secure a fully operational, legally licensed 4-star property on Batumi's vibrant coastline.

Key Investment Highlights

Price: $3.6 Million (Full Cash - Freehold - Immediate Title Transfer)

Location: Prime coastal position on Batumi's main boulevard - just 50m from the beach

Building: 25th floor of a 26-storey residence complex with integrated shopping mall

Size: 1,280 m²

Rooms: 30 in total - including standard, family, deluxe, and suite rooms

Occupancy: 73% annual average (up to 93% in high season)

Annual Net Profit (2024): $285,392

Award: "Batumi's Best Project of the Year"

Future Profit Boost: Projected 30% increase from Batumi F1 Grand Prix 2025

Licensing: Rare opportunity - coastal hotel licenses frozen until 2026

Location & Strategic Advantage

Sky Inn is located in a highly sought-after area of Batumi, only 4 minutes from Batumi Beach and within 8 km of the F1 race track. Its position on the 25th floor ensures breathtaking panoramic views of the Black Sea. The hotel is directly integrated with a shopping mall, giving guests easy access to retail, dining, and leisure, a major advantage that contributes to high occupancy and guest satisfaction.

Due to a local government freeze on new coastal hotel licenses until 2026, this investment benefits from scarcity-driven value. As one of the few legal, operating coastal hotels, Sky Inn enjoys a protected market position with limited future competition.

Accommodation Breakdown

The hotel's 30 rooms are designed to cater to a variety of travellers, from solo guests and couples to families and premium clients. All rooms are fully furnished and equipped with modern amenities.

Room Type Quantity Key Features
Standard (Double Bed) 10 Air conditioning, smart TV, minibar, fire safety
Standard (Single Bed) 10 Free Wi-Fi, Black Sea view
Family Room 7 Extra space, accommodates up to 4 guests
Deluxe Room 2 Balcony, jacuzzi, priority check-in
Suite 1 80 m², fireplace, boutique service
Common Area 1 40-seat café with direct access to the mall

Each unit offers high-quality finishes, fire safety systems, and guest-ready interior standards.

Financial Performance (2024)

Sky Inn Hotel has a strong operational history with consistent profitability over seven years. In 2024, it achieved the following financial results:

Average Monthly Revenue: $40,387

Average Monthly Profit: $23,782

Annual Revenue: $484,650

Annual Net Profit: $285,392

Annual Expenses: $199,258

Note: These figures exclude income from the hotel's café, representing further untapped income potential.

This results in a 45% profit margin, well above industry averages, particularly for a 4-star urban hotel. The Deluxe and Suite segments contribute a premium 30% markup on nightly rates, enhancing profitability.

Market & Tourism Trends

Batumi is Georgia's leading tourism city, strategically located on the Black Sea coast at the crossroads of Europe and Asia. In 2024, Georgia welcomed 7.4 million international visitors, including 5.1 million tourists, generating over $4.4 billion in tourism revenue.

Batumi in particular has seen rapid tourism growth and large-scale investment from global brands and developers. As a city known for its coastal charm, casinos, and cultural attractions, it's also hosting international events like EBIT 2025 and the upcoming F1 Grand Prix, which is projected to significantly boost demand for luxury accommodation.

The real estate market in Batumi has grown 111% since 2018, with high demand for sea-view properties and strong appreciation in the hospitality segment.

Valuation & Return Potential

Two valuation methods were used to assess the Sky Inn Hotel:

Income Capitalisation Approach (9% Cap Rate):

Estimated Value: $3,171,022

Value per Room: $105,700

Revenue Multiplier Approach (4x Annual Revenue):

Estimated Value: $1,938,600

Value per Room: $64,620

Given the strong net profit and unique market conditions, the Income Capitalisation method is more reflective of the asset's true investment value. The hotel's suggested valuation range is $3.35M-$3.65M, supporting the asking price of $3.6M.

Upside & Amortisation

The café (40 seats), though operational, is not included in the current financial projections. With improved management and marketing, its inclusion could significantly boost total income.

Based on existing profits, the payback period is approx. 8.2 years - well below the industry benchmark for urban 4-star hotels.

Documents & Legal Status

Clean title deed

All operational and financial documentation available

Title transfer can be completed in 45 days

Fully compliant with tourism regulations and licensing

Licensed 4-star hotel (rare due to ongoing license freeze)

Summary

Sky Inn Hotel is a high-performing, modern 4-star hotel in a protected beachfront location. It offers:

Strong annual income with upside potential
Exceptional coastal views and mall integration
Proven financials with high ROI
Rare coastal hotel license in Batumi
Strategic location in a booming tourism market
Full title deed and turnkey transfer

Whether you're an institutional investor or private buyer seeking a secure and profitable entry into Georgia's growing tourism sector, Sky Inn Hotel represents one of the most compelling hospitality assets currently available in Batumi.