JULY: Average Hotel Prices in Georgia & Hotel Price Index

In Georgia, the average cost of a room1 in a 3-star hotel was 148 GEL per night in July 2018. The most expensive 3-star hotels in July in Georgia were in Samegrelo-Zemo Svaneti - 180 GEL and Adjara - 156 GEL. In these regions, the average cost of a room in a 3-star hotel reached its highest point in the last ten months (October – July). The cheapest 3-star hotels in July in Georgia were found in Kvemo Kartli- 89 GEL and Imereti – 110 GEL.

The average cost of a room in a 4-star hotel in Georgia in July 2018 was 254 GEL per night. The most expensive 4-star hotels for this month were found in Samtskhe-Javakheti – 297 GEL and Kakheti – 289 GEL. In these regions, the average cost of a room in a 4-star hotel reached its highest point in the last ten months (October – July). The cheapest 4-star hotels in July in Georgia were found in Samegrelo-Zemo Svaneti – 155 GEL and Imereti – 219 GEL.

The average cost of a room in a 5-star hotel in Georgia in July 2018 was 455 GEL per night. In Tbilisi, the average price was 518 GEL, followed by Samtskhe-Javakheti - 443 GEL, Adjara – 432 GEL and Kakheti - 408 GEL. In July, the average cost of a room in a 5-star hotel in Adjara and Samtskhe-Javakheti reached its highest point in the last ten months. In Tbilisi, during the last ten months, the highest price of a 5-star hotel room was recorded in October, while in Kakheti this was recorded in June.

In July 2018, the average cost of a room in a guesthouse2 in Georgia was 72 GEL per night. The highest daily rates for guesthouses were found in Kvemo Kartli -148 GEL and Adjara – 92 GEL. During the last ten months, the average cost of a room in a guesthouse in Adjara peaked in July 2018, whereas in Kvemo Kartli the highest price in this period was recorded in November 2017. The cheapest guesthouses in July in Georgia were found in Imereti – 58 GEL and Kakheti – 62 GEL.

In terms of apartments, on Airbnb in Georgia the average cost of an apartment in July was $45. On Airbnb in Georgia, among self-governing cities the highest average cost of an apartment in July was recorded in Batumi-$50, followed by Tbilisi-$43, Poti-$35, Kutaisi-$30 and Rustavi-$20.

Hotel Price Index

In July 2018, the hotel price index3 increased by 2.7% compared to June 2018. The daily rates for standard double hotel rooms increased the most in Adjara – 10.1% and Samtskhe-Javakheti – 5.9%. Such price increase in Adjara was largely due to hotel price increases in Kobuleti (13%) and Batumi (10%). The price increase in Samtskhe-Javakheti basically was mainly attributable to hotel price increases in Borjomi (18.3%). Meanwhile, in Bakuriani hotel prices decreased by 2.5%. In July 2018, among the ten regions of Georgia and Tbilisi, the hotel prices decreased only in Tbilisi, by 1.2%.

The 3-star, 4-star and 5-star hotel price index increased by 2.9% in July 2018 compared to June 2018. In these types of hotels, the highest price increases were recorded in Adjara – 13.8% and Samtskhe-Javakheti -8.9%. The 3-star, 4-star and 5-star hotel price decreased the most in Tbilisi and Kakheti, by 2.1% and 0.6% respectively.

For guesthouses, the price index increased by 3.2% in July 2018 compared to June 2018. In this type of accommodation, the biggest percentage price increases for standard double rooms were recorded in Adjara (4.7%) and Racha (4.6%). In this type of accommodation, the prices decreased only in Guria, by 0.7%.

Tripadvisor –Hotels and Restaurants

On Tripadvisor4, when comparing the capital cities of Georgia and the capitals of neighboring countries, the highest number of accommodation units are registered in Moscow – 2843 accommodation units. In Tbilisi, on Tripadvisor 1618 accommodation units are registered, which is the second highest of the five compared cities. The number of accommodation units registered on Tripadvisor in the capitals of Azerbaijan, Armenia and Turkey are as follows: Baku – 456; Yerevan – 436 and Ankara – 364.

Similar to accommodation units, the highest number of restaurants on Tripadvisor among the capitals of Georgia and its neighboring countries are registered in Moscow – 12469, followed by Ankara – 3330, Tbilisi – 906, Yerevan – 678 and Baku – 669. Among the compared cities, Tbilisi is the only city where the number of accommodation units registered on Tripadvisor exceeds the number of registered restaurants.

1 The results are based on the surveying of standard double hotel room prices of 3, 4, 5-star hotels and guesthouses in 10 regions of Georgia. Hotels were chosen arbitrarily according to random sampling principle. The study contains 71% (312) of all 3, 4 and 5-star hotels and 25% (456 guesthouses) of all guesthouses registered on www.booking.com The 3, 4 and 5-star hotel price data was collected by contacting hotels individually, while the prices of guesthouses were taken from booking.com. The average prices are arithmetic mean of standard double hotel room prices.

2 Guesthouse: a type of accommodation that is characterized by having a small number of rooms and services are usually offered by the resident family.

3 The calculation of the hotel price index is based on the recommendations given by the International Monetary Fund (IMF). The elementary aggregate price index is calculated by Jevons index (Consumer Price Index Manual-Theory and Practice (2004), Practical Guide to Producing Consumer Price Indices (2009)).

4 www.tripadvisor.com/

* Preliminary results

13 August 2018 15:40