Press Release
OPIC Approves First Finance Project in Georgia, for Renovation of Historic Hotel, Construction of Another
October 4, 2000
Tbilisi - On Friday, October 6th, the Overseas Private Investment Corporation (OPIC) and JSC Hotel Tbilisi will announce OPIC’s first finance project in the country of Georgia, a USD 26 million loan commitment for the renovation of the historic Hotel Tbilisi and the construction of a new hotel and office building on Freedom Square.
The U.S.-Georgian joint venture, JSC Hotel Tbilisi, is renovating the 85-year-old Hotel Tbilisi, converting it into a 123-room hotel, and is constructing a new multi-use facility, featuring a 120-room hotel and office space, with underground parking. The Hotel Tbilisi is scheduled to open in early 2001; the hotel on Freedom Square is expected to be completed next fall. Both hotel properties will be managed by Marriott, one of the world’s leading hospitality companies.
According to George Muoz, President and CEO of the Overseas Private Investment Corporation (OPIC), "OPIC is excited to be part of a project to renovate an important symbol of Georgia’s economic vitality, and one that will attract foreign business and tourism to a country on the road to economic growth and political stability. With a respected partner such as Marriott, OPIC looks at this project as one beneficial to both U.S. business and Georgia’s efforts to establish a sound financial infrastructure."
The project will generate approximately 400 construction jobs in Georgia and is expected to create a further 226 hotel-related jobs; in addition, it will be an important source of foreign exchange earnings and tax revenues for Georgia.
OPIC is a U.S. government agency that provides investment support to small, medium and large American businesses expanding into emerging markets around the world. OPIC’s programs in Georgia include investment finance, insurance, and direct equity investment funds. Since 1993 this has resulted in nearly USD 75 million in OPIC support for U.S. investors and U.S. Georgian joint ventures.