OREANDA-NEWS. The European Bank for Reconstruction and Development (EBRD) is providing finance for the development of a new mid-range hotel, the Hilton Garden Inn, in the Georgian capital, Tbilisi. The USD 18.7 million loan will be extended to a local company – 64 Chavchavadze LLC – which is managed by the Georgia-based real estate company, Redix Group, owned by Georgian entrepreneurs, the Papashvili brothers.

The 14-storey, 165-room hotel will be built on Chavchavadze Avenue, one of Tbilisi’s major thoroughfares, where many local banks and other businesses are headquartered. The Hilton Garden Inn – which will be the first hotel under the famous Hilton brand in Georgia and the region – is expected to be completed in 2016.

The EBRD’s Director for Caucasus, Moldova and Belarus, Bruno Balvanera, said: “The country needs to grow the mid-range market – the kind of hotels that serve business travellers and middle-income tourists, bringing much needed investment to the country. Apart from expanding this market segment, the new hotel will also make a very important environmental contribution to the sector, setting standards in energy efficiency that move significantly beyond the current standards used in the region.”