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Journal number 4 ∘ Nana KatsitadzeElisabed BaliashviliMariam Qutateladze
The Trends of the Hotel Indusrtry Development in International and Georgian Markets

The main purpose of the reasearch was to reveal the recent trends of the hotel industry in International and Georgian markets . The conclusions will be served for the development of the policies of forecasting and further development of Georgian tourism.
According to the studies of the international reseaches , it was revealed that along with the recovery of tourism sector the growth of economic indicators in the hotel sector was recorded.
The paper examines the current changes in the global hotel market from a global point of view, both structurally and functionally.
Over the years, the global hotel market has experienced certen changes, which is due to the business activites, policies of the operating companies. Some of them even left the hotel market .
As of 2021, the top ten of the world’s largest hotel chains were mainly represented American operators along with British and French.
From 2019 to 2022 years new leaders appeared in the global hotel market and accordingly, the position of the top ten chains also changed. Chinese chains-Jin Jiang hotels and BTH hotel took the 2nd and 9th positions in the top ten of the global hotel market and the Indian chain – OYO Hotels & Homes took the 10th place. By 2019, 7 Chinese companies were in the top ten of the global hotel chains.
The highest global inflation rate reaching 7.9% in 2022 year has resulted in widespread capital market dislocation with lenders becoming selective about the projects they will invest in.
Despite the macroeconomic instability that plagued the back-half of the year, two of the three global regions saw increased hotel investment volume in 2022—the Americas and The Asia–Pacific.
Ongoing capital market dislocation and lingering international travel restrictions meaningfully impacted global investment appetite and cross-border investments, respectively, particularly during the second half of the year.
Luxury assets, resorts, and hotels situated in safe-haven markets remained the most liquid as investors look to stabilize cash-flow and mitigate risk in the aftermath of the pandemic.
The lift in global travel demand accelerated the recovery of hotel fundamentals despite the war in Ukraine and rise in geopolitical tensions that exacerbated economic volatility with record-high inflation, labor shortages, and supply chain disruptions
After three years of lockdowns and border closures, mainland China reopened their borders on January 8th, 2023. Formerly the world’s largest outbound tourism market, Chinese residents spent $254.6 billion on tourism in 2019, falling to just $105.7 billion in 2021, which has in part, hindered global tourism recovery,
While borders continue to reopen and people’s desire to travel intensifies, we must keep a close eye on emerging markets like India, who according to the UNWTO are the world’s highest spending travelers, four times that of Chinese and Japanese travelers.
As international borders reopen, look for cross-border hotel investment opportunities to increase particularly originating from Asia, the Middle East, and Europe.
Following years of pervasive lockdowns and restrictions, people have reprioritized their lives with a heightened focus on work-life balance, increased quality time with loved ones, and a renewed desire to authentically experience the world via travel. This has led to the emergence of new lodging demand segments, as travelers look to spend more time in new places. As such, opportunities have arisen across the broader lodging industry for owners and investors to develop innovative products that cater to today’s traveler. With Millennials and Gen Z now comprising nearly 50% of the world’s population and expressing a desire to travel purposefully in a tech-enabled world, the lodging industry must adapt. In 2023, look for traditional hotel brands to expand their product offerings to new verticals, the continued blur between alternative accommodations and hotels, and an increased focus on owning the entire travel experience.
In Asia and Europe, co-living has emerged as a strong investment opportunity as it capitalizes on the blend between working, staying, and living.
Co-living subsector will be a key driver of global alternative accommodations growth in 2023.
As a result of searching new motivations and experiences among the international travelers, the geography of tourism is changing and tourist centers are shifting towards new touristic countries.
Due its vast tourism potential, country Georgia still remains a popular tourism destination.
The Georgian hotel service market is interested in the top ten U.S. and European and Asian networks of Asian origin. This is the why since 2019, the placement of their brands in a number of regions of our country will increase for the future as well.
The basis for such expectations is the ongoing projects and planned ones for the future.
The authors expressed the opinion that the invasion of the global branded hotel groups into the budget segment of the Georgian hotel market can be problematic in the long term, as they occupy the segment of the market that holds local small businesses and threaten the prospect of inclusive tourism development in the Georgian regions.
The authors consider it necessary for the state to take certain measures in order to avoid these circumstances.

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Keywords: Hotel industry, tourism, global hotel chains, changes in travelers’ motivations
JEL Codes: L80, L83, L89