Tbilisi, Georgia, November 25, 2015—IFC,
a member of the World Bank Group, is providing a $7 million loan to a wholly
owned subsidiary of m2 Real Estate to build one of the first
three-star internationally branded hotels in Georgia, helping create jobs,
meet growing demand for quality hospitality infrastructure, and spur broader
Tourism and travel is one of Georgia’s fastest
growing sectors, and a key generator of jobs. Yet the budget and mid-market
hotel segments are particularly underserved, resulting in a large gap between
supply and demand. In funding the construction of a Ramada Encore Hotel
in Tbilisi, IFC’s loan to JSC m2 Real Estate’s wholly owned
subsidiary aims to address this gap.
”Building on our successful cooperation
with IFC over years, with this new project we plan to contribute to improving
Georgia’s hospitality infrastructure and cater to the growing demand for
travel in the country,” said Irakli Burdiladze, Chief Executive Officer,
m2 Real Estate.
The 152-room hotel is the first step in JSC
m2Real Estate’s plan to build more than 300 affordable hotel
rooms in Tbilisi and, potentially, other cities of Georgia. In addition,
the hotel plans to use using energy efficient technologies to reduce power
“We are helping develop Georgia’s private
sector – particularly for business infrastructure, like this budget and
mid-market hotel – because the availability of such infrastructure can
boost business and tourist activities,” said Jan van Bilsen, IFC Regional
Manager for the South Caucasus. “The hotel sector also generates economic
activity for small businesses, which supply goods and services during construction
and operations, supporting economic growth.”
Ramada Encore Hotel in Tbilisi is ultimately
expected to create more than 100 direct and indirect employment opportunities.
Hotel and tourism jobs often have a strong multiplier effect and indirectly
generate many other jobs, one of the key reasons behind IFC’s support
for the hotel industry in developing countries. Since 1956, IFC has invested
over $2.7 billion in more than 276 tourism and hotel projects in 90 countries,
with about half of these investments in frontier countries.
Since Georgia became an IFC member in 1995,
IFC has provided more than $1 billion in long-term finance, including $362
million mobilized from partners, supporting 52 projects across various
sectors. In addition, IFC has supported nearly $300 million in trade through
its trade finance program, and implemented several advisory projects focused
on private sector development.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.
About m2 Real Estate
JSC m2 Real Estate, a wholly-owned
subsidiary of BGEO Group plc, is a real estate company focusing on the
real estate development and property management. To this date, JSC m2
Real Estate has attracted equity and debt financing in the aggregate amount
of nearly US$ 110 million. JSC m2 Real Estate has already successfully
completed 3 housing projects located in the central districts in Tbilisi,
Georgia, with 3 more projects underway planned to be finished in 2016.
For more information, visit www.m2.ge.