1Q20 Results Discussion
Private early
stage portfolio
Hospitality and commercial real estate business overview (cont'd)
GEORGIA
CAPITAL
Valuation highlights | 31 March 2020
Financial metrics (GEL millions)²
GEL millions, unless otherwise noted
NAV
LTM ROIC1
31-Mar-20
31-Dec-19
Change
2016
2017
2018
2019 I
1Q19
1Q20
Change
NOI³ from operating leases
3
3
5
61
1.5
2.4 61.9%
219
246
-11.0%
NOI³ from hospitality services
2
21
0.0
(0.3)
NMF
Revaluation gain
1
28
221
NMF
5.6%
6.5%
-0.9ppts
Total net operating income
2
3
31
251
1.0
0.2
-82.2%
Cash flow from operations
3
3
6
31
1.1
0.0
-97.8%
➤ In light of Covid-19, we marked down the valuations of our operational and pipeline hotels.
Commercial real estate portfolio
42
42
68
129
87.1
151.0
73.4%
Selected operating metrics
Hospitality projects overview | 31 March 2020
1Q19
1Q20
Change
Hotel
Location
Rooms
Current Stage
Gross yield (leased portfolio)
Occupancy rate
Leased area (sq.m.)
9.0%
9.8%
+0.8ppts
Ramada Encore Kazbegi, Tbilisi
GUDAURI LODGE
Capital city
152
Operational
Region
121
Operational
83.5%
91.6%
+8.1ppts
Ramada Melikishvili, Tbilisi
Capital city
125
Construction
25,145
34,780
38.3%
Kempinski, Tbilisi
Capital city
99
Construction
Seti Square in Mestia, Svaneti
Region
52
Construction
Ramada Encore YTD February performance
Ramada Kutaisi
Region
124
Construction
Kakheti Wine & Spa
Region
60
Construction
RevPAR, US$
15
ADR, US$
55
Occupancy%
Shovi, Racha
Region
109
Design
27.5%
Mestia, Svaneti
Region
140
Design
GUDAURI LODGE MTD February performance
RevPAR, US$
ADR, US$
113
Occupancy%
49.1%
Telavi
Zugdidi
Region
110
Design
Region
130
Design
Total
1,222
55
"Gudauri Lodge" hotel was launched in December 2019.
In light of the COVID-19 outbreak, operations at the existing two hotels were
suspended since mid-March and both hotels are rented to the government for
quarantine, covering the costs of current operations.
➤ Hotels under construction and under design stages have been put on hold in light of
COVID-19 outbreak until there is more certainty regarding the effects of COVID-19
on the business landscape and the Georgian economy.
(1) ROIC is calculated as NOI divided by aggregate amount of total equity and borrowed funds.
(2) Hospitality & Commercial real estate business' functional currency is US dollars.
(3) Net operating income.
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