Deadline for opening Hualing Hotel extended

The changes have been made to 2015, July 21 purchase contract of the National Property Agency of Ministry of Economy and Sustainable Development of Georgia and the Chinese company “Hualing International Special Economic Zone.” The deadline for opening the Hualing hotel in the former building of the ministry of economy has been extended. The reconstruction of the building located in Tbilisi, 12 Chanturia Str. into the hotel must be completed before 26 October 2023, provided that the amount of the fine will be reduced from GEL 500 to GEL 1 for each overdue day of the effective date of the project.

The company was able to agree upon the hotel renovation project with the Tbilisi City Hall on November 26, 2019. According to the order, the deadline for the agreed construction permit is no later than October 26, 2023.

According to the project, the hotel Hualing Tbilisi Hotel & Preferences should have 3 floors underground and 13 floors above ground. The underground 2-story car park features closed parking for 30 cars. The entire project building is also accessible to persons with disabilities. The hotel will have a pool, sauna, office space, hotel rooms and techno rooms.

The agency noted that if the project is not completed by October 26, 2023, the reduced penalty will be canceled and will be GEL 500 again.

“At the same time, the amendment will not apply to the penalties incurred prior to the enactment of Government Decree No. 2545 of December 6, 2019. The Company will, within a reasonable time, also have to pay the penalties it incurred for failure to comply with the July 21, 2015 sale agreement,” read the statement.

The Hualing Group, which was supposed to build a hotel on the site of the former building of the Ministry of Economy, has been paying fines since April 21 for failing to meet its investment obligations. The company is charged 500 GEL per day as a fine under the contract.

The former Ministry of Economy and Sustainable Development building located at 12 Chanturia Str. Was auctioned in 2015 for $9 450 000 under the program 50 Properties for Your Hotel. The investor's obligation was to create and operate at least a 100-room hotel in no longer than 36 months of time after January 1, 2016. The construction term for the Hualing Group expired on April 21, 2019.

“50 Properties for Your Hotel” is the business proposal of the Ministry of Economy of a few years ago that called for the private sector to buy state-property across Georgia with the investment obligations that were to be arranged as hotels.

Bm.ge has requested public information from 50 sites since 2016 that counts how many have been sold, how many companies have fulfilled their obligations and how many have not.

In accordance to the information provided to business media by the National Agency of State Property, the state has managed to sell only half of the 50 in 3 years.

According to the project, it is envisaged that fully GEL 98.6 million and $ 6.5 million should be invested in the sold units. This will be the case if all buyers meet their contractual obligations. However, the documentation provided by the agency shows that not all buyers have a contractual obligation to invest in the site.