By 2012, Capitol Real Estate's investment portfolio owned a 250 sq/m plot of land in the center of Kutaisi, on which there was a state obligation to build a hotel. Capitol Management decided to use this asset and start operations in the field of hospitality. At the first stage, the company studied in detail which brands were operating in Georgia and what type of hotels would be suitable for construction. For optimal concept planning and developing a strategic plan for hospitality development, Cushman and Wakefield commissioned Capitol Management to conduct a nationwide survey of the requirements, prospects and development potential in the fields of tourism and hospitality. The research revealed the need for standards and an international brand, as well as the necessary locations, among which Kutaisi was included.

Since there was a shortage of hotels in the regions at that time, Capitol Real Estate developed a plan aimed at the development of tourism in the regions, except for Batumi and Tbilisi. The challenge was the fact that international brands in Georgia refused to give their own brand to hotels with less than 100 rooms. In addition to this, they required the establishment of appropriate high standards, which made the investment volume of the projects incompatible with the Georgian market. In the case of Kutaisi, Capitol Management faced two challenges: an international brand that would agree to number 45 was needed, and also a management company.

In response to the existing challenge, Capitol Management began negotiations with the world-famous chain, BWH℠ Hotels, to accept representation of one of their brands. Based on the rapid pace of economic development of Georgia, the Best Western company became interested in the country's tourism potential. An agreement was reached and the first cooperation agreement was signed, which meant granting representation of the Best Western network in Georgia.

At the same time, negotiations began with the population living on the border of the plot, which ended successfully. Finally, the area increased to 600 sq/m and the possibility of building a 45-room hotel appeared.

During the planning of the project, a study was conducted by Capitol Management to identify the target segment of the hotel, which identified two segments: leisure tourists who visited Kutaisi to visit the sights and take a break, and business people who would arrive in the city in the morning and leave after finishing their work. The team started working to meet the needs of these two segments and based the marketing concept of the hotel on the relevant directions.

Best Western Kutaisi was opened in April 2017, in a colorful place, near the White Bridge. The building is distinguished by a special design: the modern exterior and ancient elements of the interior fully preserve its historical appearance. It is the first hotel in Georgia to be awarded the Best Western name.

Project implementation

During the implementation of the project, the Capitol management team took a number of successful steps:

• Capitol Management has started negotiations with the world famous chain, BWH℠ Hotels, to receive representation of one of their brands;

• The plot of land was located in the historical center of Kutaisi, in the 50-meter zone of monument protection, next to buildings with the status of cultural heritage. At the same time, large-scale rehabilitation works of Kutaisi were carried out by the state. Therefore, in order to build a 6-7-story, 45-room hotel, to maintain the architectural appearance of the city, to adapt to the stylistic features, and to meet the necessary requirements of the project agreement with the Kutaisi self-government, local architects were involved in its preparation;

• Project development was handed over to Simetria a member company of Capitol Management;

• During the implementation of the hotel project, the group signed a 50% co-financing agreement with the Partnership Fund, included a private partner company in the co-investment process and, finally, the project was completed together with it;

• Successful refinancing of the Partnership Fund was carried out by Capitol Management with the credit resources of TBC Bank;

Since the beginning of operation, 3-star Best Western Kutaisi has won many awards. Among them are:

● "Loved by Guests Award" winner by Hotels.com - 2021;
● "Traveler Review Awards" by Booking.com - 2021;
● "Standard Accommodation Award" finalist by Welcome to Georgia Awards - 2020;
● "Traveler Review Awards" by Booking.com - 2020;
● "Quality & Service Award" by Best Western Hotels & Resorts - 2019;
● "Standard Accommodation Award" finalist by Welcome to Georgia Awards - 2019;
● "Certificate of Excellence" by TripAdvisor - 2018;
● "Traveler Review Awards" by Booking.com - 2018;
● "The Best Value - Standard Accommodation Award" finalist by Welcome to Georgia Awards - 2018;
● National award of the Bank of Georgia and tourism Welcome to Georgia 2017, winner in the nomination of the fastest growing company of the year in the segment of medium and small business;
● International Hospitality Awards – 2019 finalist, Best Business type hotel;
● International Hospitality Awards – 2020 Finalist, Best Small Town Hotel.

Results of the project

The hotel was managed by Hotel Collection International Georgia, a company jointly established in Georgia by Capitol Management and the international multi-brand Spanish hotel management company, Hotel Collection International.
After the pandemic, Capitol Real Estate's portfolio changed, and the team considered it appropriate to sell the 50% share of Best Western Kutaisi to the existing partner. The deal was concluded in May 2023 and, accordingly, the management of the hotel was taken over by a new team.

Expected results during project planning:
• Guest satisfaction index: 87.7%, from this indicator, service received a special rating — 87.9%, and cleanliness — 87.7%;
• Internal rate of return on capital (IRR Equity - monthly basis) — 13.6%;
• Internal rate of return on the project (IRR Project) — 12.4%;
• Return on investment (ROI) — 135%.