Georgia Sets $27.3 Million Minimum Cost To Own Tskaltubo Medea Spa

Anyone seeking to purchase the Medea sanatorium in the Georgian spa town of Tskaltubo must now prepare for a total financial commitment of $27.3 million. This figure combines the government's asking price with a mandatory renovation budget. The state listed ten Soviet-era properties for sale on October 20, and the online auction closes on November 15.

The government is asking $3.3 million for the Medea building. Beyond that purchase price, the buyer must commit $24 million to a five-year restoration project. This overhaul requires the delivery of at least 120 guest rooms, conference halls, and restaurants. The other nine sanatoriums in the auction carry similar terms, with starting prices ranging from $1 million to $3.5 million and additional pledges for substantial renovation spending.

Frederic Le Fichoux, a commercial real estate expert who contributed to a 2020 feasibility study on the town, noted that the strict conditions reflect a deeper issue. He argued that restoring a single building might not attract visitors if the surrounding infrastructure remains neglected. "If you are one investor and you buy, you renovate that property that you bought, you turn it around," he said, "but then the rest of the destination is still kept as a ruin." Le Fichoux stated that successful development requires public funding for roads and access, alongside private reinvestment in the buildings.

The state has attempted to sell these properties before. Seven sanatoriums were sold in earlier auctions, but three have since returned to state ownership. Medea was reclaimed by the government in 2024 after its previous buyer failed to meet contractual obligations.

David Sichinava, a Canada-based academic who grew up in the town, described the redevelopment strategy as an "all or nothing" approach. He highlighted a specific legal exemption that allows casino operators in Tskaltubo to bypass permit fees that can reach $1.9 million annually elsewhere in the country. "Balneology (the science of therapeutic use of baths) alone can't really support the kind of tourists that this town can host," he said.

The town gained national attention in October 2019 when Bidzina Ivanishvili, Georgia's wealthiest man, promised to buy the state-owned spas. He pledged a "full-scale rehabilitation" but the plan never materialized. Prime Minister Irakli Kobakhidze told media on October 20 that the pandemic and sanctions against Ivanishvili caused the drop in the plan.

Since the 1990s, the sanatoriums have housed people displaced by the conflicts in Abkhazia and South Ossetia. Most residents have moved out, though Sichinava estimates 100 to 200 displaced people still live in the buildings. Madonna Mushkudiani, who fled Abkhazia in 1992, was relocated to an apartment in 2023. She noted that conditions in the partly derelict building were poor, but she still visits former neighbors. "We miss every minute we spent there. It was our second home," she said.