Branded apartments: from a global trend to a real opportunity of the Georgian market

Branded apartments are no longer a niche product associated only with a few high-class resorts and megacities. Today, in many markets, they have become one of the most sustainable growth drivers for real estate in the hospitality sector—especially where traditional hotel models are more sensitive to economic cycles and seasonality.

This trend is becoming more and more clear in the market of Georgia. The growth of tourism, increasing trust in international brands and investors' interest in relatively flexible and diversified products create the ground for the development of branded residential projects, both in Batumi, Tbilisi and resort locations.

The world in numbers

Recently, branded residences have emerged as a mainstream category of elite real estate, currently comprising more than 115,000 units in approximately 750 completed projects worldwide. In addition, there are projects of approximately similar volume today It is in the development stage. The growth of the sector has become evident, growing by almost 180% between 2014 and 2024, and according to forecasts, there will already be more than 1,600 projects by 2030, and potentially more than 3,500 by 2040.

By hotel and non-hotel brands, hotel-branded residences dominate, accounting for approximately 80% of the total, two-thirds of which belong to the luxury segment, and non-hotel brands account for approximately 20%.

Why choose branded residences?

In our opinion, such a choice is determined by the following factors

• Reliability: international brand guarantee

• Service: hotel standard in everyday life

• Investment: high demand and stable income

• Global network: possibility to get temporary residence in other countries

Operating model — the main determining factor

The main difference of branded apartments from traditional residential projects only in the name of the brand a R is determined. Operating model is crucial: service quality, service structure, governance system and long-term asset management.

In the reality of Georgia, there are often cases when the project concept is correctly positioned, but the operational part is insufficiently calculated. This is especially important in the market, where part of the buyers buy the apartment for investment purposes, and part - for living. Correctly balancing the interests of these two groups is critically important for the operator.

Luxury standards and long-term value

Today, luxury in branded apartments no longer means only premium materials and architecture. It has more to do with service stability, lifestyle integration and the brand's ability to keep its promise over the years.

This is especially relevant in the Georgian market, because many projects enjoy high interest at the stage of initial sales, but the real test begins in the second half of the year After exploitation. This is where the difference can be seen between projects that actually create long-term asset value and those that are only focused on short-term sales.

Common errors at the implementation stage

Most of the problems of branded residential projects appear at the stage of implementation. Design decisions that do not take operational requirements into account, underestimating the capital costs of the service, and delaying operational readiness often result in a mismatch between expectations and reality.

In the context of Georgia, the early involvement of the operator is especially important, as the market is still developing and many developers do not have experience in managing similar projects. Operator participation in the early stages of concept formation significantly reduces risks.

Alignment of interests of developer, operator and investor

One of the most sensitive issues of branded apartments is the operator's model, management structure Compliance of prices and costs with investors' expectations. Transparent financial models and a clear division of responsibilities are a necessary condition for project sustainability.

Developers in the Georgian market who view such projects as long-term operating assets and not just sales-oriented products are much better able to structure deals acceptable to banks and institutional investors.

Experience of BWH Hotels in the direction of branded residences

At the global level, BWH Hotels has already accumulated significant experience in the direction of branded residences in different positioning and price segments. It is this flexibility and multi-brand platform that allows developers to choose the right product for a specific market and location.

The development of BWH Hotels branded residence brands in the Georgian market has been started for just 3 years. During this period, our portfolio of projects is gradually and steadily is expanding and currently includes the following three projects under construction: WorldHotels Branded Residences Batumi - luxury segment WorldHotels Elite Kobuleti (Apartment + Hotel) - luxury segment Best Western Branded Residences Kutaisi - premium segment WorldHotels Branded Residences Batumi

Along with this, we have intensive negotiations on several interesting projects in such locations as: Tbilisi, Batumi, Kutaisi, Poti and Borjomi.

This dynamic clearly shows that there is a real demand from investors and developers for BWH Hotels' branded residential products, which are based not only on the brand, but also on operational expertise and long-term vision. 

How global brands evaluate Georgian projects

Developing markets like Georgia are particularly interesting for international brands, although at the same time they undergo a higher selection process. Brand relevance, location, operational feasibility and long-term Adani's reputational impact is the main criteria on which the decision is made.

Brands increasingly prefer projects where design, service concept and ownership structure ensure real and sustainable performance of brand standards.

The new generation of buyers and the transformation of demand

The new generation of buyers and visitors are also changing their demand in the Georgian market. Flexibility, wellness, sustainability, community-oriented spaces and lifestyle integration are often more important than the traditional understanding of luxury.

Branded apartments that combine these elements correctly are more attractive to both local and international buyers and show better results in the long run.

Future buyers of branded housing — who are they and what do they want?

Who will buy branded apartments in 2026 and beyond? In our experience, they mainly fall into the following categories: Local buyers — Din Interested in purchasing prestigious, branded, luxury real estate, both for residence and as an investment asset. Western investors — looking for security, stable income and legacy. Eastern buyers — looking for a new exciting environment, value prestige and speed in making decisions.

Knowing your audience is not an easy option. This is the first step in creating something that they will actually buy

Conclusion — a real opportunity for properly structured projects

Branded apartments on the Georgian market are a real opportunity, but only if the project is properly structured. Balancing the interests of operators, developers and investors, operational discipline and long-term vision are the factors that determine success.

As you can see, the market continues to develop rapidly. Branded apartments are no longer just a marketable product — they are not It is a safe operating asset that, when properly managed, creates real, sustainable value and provides the investor with a sense of stability and peace of mind.