Please name your local business partners in Georgia and Azerbaijan, what was the main condition for choosing these partners?

Did you invest in expanding your network?  If yes, what is the volume of investment by Accor Group

Accor is a service provider. We are providing the Brand, Marketing Services, Reservation system, Loyalty program and for those who want their hotel to be managed, we also offer management services. Therefore, we cannot say that we are bringing direct investment into the country. However, we are bringing know-how that increases the attractiveness of the country, allows our talents to grow, and at the end of the day brings more tourists to the country, which increases the income that the country is receiving from these tourists.

What are the total investments made by your partners (property owners) in Georgia? In Azerbaijan? In Armenia? What is the total investment in Georgia?

If we talk about Georgia, and based on existing hotels at this date, we can probably evaluate this to US $ 150 000 000. In Azerbaijan, this will be over US $ 100 000 000, and in Armenia, approx. US $ 18 000 000.

Please provide information on hotels scheduled to open in Tbilisi, Kakheti region and Ajara.

This year we are planning to open two new hotels in Tbilisi. A Swissôtel presenting Swiss heritage and premium services will open on Soliko Virsaladze Street, close to The Orbeliani Palace; and a NOVOTEL, our world-famous midscale hotel brand, will open in the Avlabari neighborhood.

Just recently, we announced a new project in cooperation with Fujin Silk Properties LLC – ibis will open at Tbilisi Airport in 2024, while together with the other partner, Kala Ubani, we are constructing a new ibis Styles in Kalaubani, one of the oldest districts of Tbilisi. Moreover, we are planning to introduce Accor’s new economy hotel brand focused on sustainability – greet – in Tbilisi in the coming years.

Speaking about the Kakheti region, last year Accor signed a cooperation agreement with TT GROUP LLC to open a Mercure Telavi Resort in Ruispiri Village in 2024. We are excited to present Mercure, our well-known brand inspired by local heritage, in such a picturesque wine region.

In addition, we are working on the implementation of new projects in Batumi and beach resorts in Kobuleti, and negotiating new contracts in different parts of the country. We have ambitious plans for Georgia, it is one of the most promising tourism markets in the region, and Accor aims to take a leading position in it.

What is the total number of rooms?

More than 1,500.

What is the expected volume of occupancy?

It will vary depending on location. Each hotel has its own business potential, and obviously, hotels that are, for example, close to the city center and the main tourist attractions will have better occupancy.

What kind of marketing activities are planned for Georgian hotels?

Every year our hotels organize something new: last year the creative ibis Styles Tbilisi Center hosted Art Night for the guests with a professional artist to paint one of the famous pictures. Pullman Tbilisi Axis Towers, one of our latest openings and flagship hotels in the region, has an ongoing Artist Playground exhibition displaying the paintings of local artists in their lobby. We brought a group of international journalists to Pullman Tbilisi last year to promote the new hotel as well as Georgia as a wonderful travel and gourmet destination across European markets. This year we plan a series of events and new activities for our hotels based in Tbilisi – we will share news and updates accordingly.

From which regions or countries do you expect to receive more guests?

Traditionally, Georgia is attracting guests from Russia, Turkey, Azerbaijan, but we see a growing interest from Iran, the Middle East, and Europe. It is a very diverse business mix, which is good for the country, but it is also a risk, as domestic tourism is limited due to the size of the population.

What are the current challenges for Accor Group in terms of business development?

They are the same as in most countries that are still in a development phase:
Cheap and long loans, as the hospitality business is part of the infrastructure and the return on investment is ranging from 10 to 15 years
Subsidized taxes
Trained personnel
These are the most challenging issues for faster development.

How you can characterize Georgia and its infrastructure as a travel destination?

I first came to Georgia about 15 years ago… So I see the difference, and I can say that the overall infrastructure is fairly good. New Airports, main roads are OK, utilities are enough to service the existing flow of customers. Obviously, there is still room to grow, especially when it comes to domestic flights, but it is a matter of time, and I am confident that it will happen.

What is your personal experience of spending time in Georgia?
I love Georgia by all means: history, culture, religion, food and wine, people, landscape, etc… One of my favorite cities in this part of the world is certainly Tbilisi!

What is missing in Georgia in terms of better hospitality business?
Nothing!

Please compare the advantages or disadvantages of Georgia in terms of tourism comparing to neighboring countries: Turkey, Azerbaijan, Armenia

Turkey plays in a different league, as the size of the country and its potential in terms of recreational tourism is not comparable.
Georgia is in the Caucasus, so there are indeed similarities with neighboring countries, but the investment climate is more favorable in Georgia. Also, if you look at history, Tiflis has always been the capital of the Caucasus, and I believe that in terms of cultural life, for example, Tbilisi is richer.

What are your expectations about the summer tourist season in Georgia? Are you planning to raise accommodation prices due to increased tourist flows?

We are expecting a good summer season and our hotels are ready to give a warm welcome to guests from all over the world. We are not increasing our prices for the sake of increasing. The hotel prices are led to demand and supply, and are mainly driven by such factors as well as the competition. What we see in Europe (and worldwide), is that accommodation costs have risen everywhere due to inflation, cost of personnel and other factors affecting the hospitality and tourism business.

Last month the Ministry of Economy and Sustainable Development of Georgia announced a new hotel hub project “Central Park Towers” with 25 five-star hotels. It is expected that the new project will help Georgian citizens find jobs, including those who are currently employed in the hotel sector abroad. Do you observe a shortage of qualified personnel in your hotels in Georgia?

Do you hire people with no experience? Where to find Accor job opportunities in Georgia?

We face staff shortages in Georgia as well as in other countries. The pandemic has massively impacted staffing levels across the global hospitality industry, and we still facing its consequences. However, we remain optimistic as the hospitality industry shows signs of recovering – the travelers look to resume pre-pandemic activities, and we are on track to attract and recruit more talents seeking new challenges and opportunities. It is possible to start a new career and grow together with Accor. All available positions are published on the Accor Careers website.

In recent years, many famous international hotel brands have expanded their presence in Georgia. Can they become a competitive threat to Accor?

We are concerned that there will come a time when there might be an oversupply in Tbilisi and probably in Batumi. This is happening everywhere in the world, as there is always a certain amount of time between the speed of the construction of hotels and the rise in number of tourists. As a result, the good projects remain afloat, whereas the wrong or poorly developed projects will lose. This is a normal market principle and the result will be a slowdown in the construction of new hotels, that will trigger (in a few years) a rise in average price due to an undersupply…

Over the past year, the rapid development of the resort area, including new elite housing and branded apartments is observed in Georgia. At the same time, there are no extra requirements or taxes for foreigners when it comes to buying residential real estate. In this regard, the format of hotel apartments is gaining popularity with opportunities for long-term residence and room acquisition for further rental. Does Accor have a similar format to hotel apartments? What are the benefits for potential investors in such projects?

Last year Accor launched a new brand for extended stays – Novotel Living. It offers accommodation in apartment style with everything needed for a long and comfortable stay: kitchen in the rooms, space for work and rest, laundry service and high-speed Wi-Fi. We have already opened a hotel under this brand in Almaty, Kazakhstan, and now are planning to bring it to Batumi in 2025 in cooperation with our partner Mardi Holding, as we notice interest and demand for such type of accommodation. Apartments are to be purchased by different owners while Accor will be a hotel operator bringing its world-famous brand, international standards and service, and access to the loyalty program. Apartment owners are attracted by the economic benefits of such an alliance – they do not participate in maintaining the apartments and infrastructure, searching for and attracting the guests, in the meantime they receive income from renting out their apartments.

On March 17, the Ministry of Finance and Economy of the Autonomous Republic of Adjara presented the first All Inclusive hotel complex in Georgia. What do you think about the future of all Inclusive hotels in Georgia?

There is probably a niche for that, but it will be difficult to compete with neighboring Turkey.

In 2015, 193 UN countries, including Georgia, signed the 17 Sustainable Development Goals (SDGs) to end poverty, ensure prosperity, and protect the planet. The concepts of CSR and ESG are becoming increasingly important in progressive companies. Is it applicable in the tourism industry? What steps does Accor take to accelerate sustainable growth and protect environmental values?

Accor hosts more than 680,000 guests in 110 countries every day. Naturally, this level of activity has an impact on our planet, and in this context, we are aware of the great responsibility towards sustainability leadership. We at Accor are continuously working on eliminating single-use plastic, avoiding food waste, reducing greenhouse gas emissions, reasonable use of energy and water. Starting from the beginning, we are designing low-energy buildings using low-carbon materials and improving buildings’ efficiency. Furthermore, we are sourcing green energy and looking at how to generate energy directly at hotels. Accor has been a pioneer in sustainability for more than 50 years, and we will keep accelerating our global sustainable transformation by building a model where we contribute more than we take and collaborating closely with our partners and teams to embed sustainability across all our activities, with people and nature at the core.