Hotel room on Batumi's artificial island: a reviewed-and-declined deal
The seller advertised a 7.1–17.3% yield for a hotel room in the artificial-island project. After checking the numbers against the Batumi market we advised the client not to buy at the offered price.
- Offered priceSeller's data
- $128,740 ($4,100/m²)
- FormatSeller's data
- 31.4 m² hotel room, operator-managed only
- Income splitSeller's data
- 60% owner / 40% operator; service $2/m²/month
- Advertised yieldSeller's data
- 7.1–17.3% (three seller scenarios)
- No income untilSeller's data
- project opening (~2029–2030), construction risk
- Our market readOur assessment
- price ~3x the Batumi average and 38–46% above residential apartments on the same island
- Realistic assumptionOur assessment
- ADR $90–100, occupancy 50–55% (2025–2026), not the 2024 peak
- Entry price of interestOur assessment
- $88,000–100,000 ($2,800–3,200/m²)
The seller's 'optimal' scenario is built on 2024 peak data: ADR $112.3 and 66.6% occupancy. On 2025–2026 actuals the room's yield is well below the advertised range, and payback at $4,100/m² stretches unreasonably.
The room is acceptable only for a client with a 7–10 year horizon accepting construction risk — and only after full due diligence and price negotiation.
Within the same project a residential apartment is more attractive: from ~$2,800/m², a 70/30 split in the owner's favour, better resale liquidity. See also completed properties with verifiable rental history in our investment scenarios.