Georgia Sets $27.3 Million Price Tag For Tskaltubo Medea Revival

The Georgian government has priced the revival of its most famous Soviet-era spa at a total cost of $27.3 million. This figure combines the $3.3 million base price for the Medea sanatorium with a mandatory $24 million investment in construction and renovation. The state listed ten similar properties in the Tskaltubo district for auction on October 20, with bidding closing on November 15.

The financial terms are strict. A successful bidder for Medea must complete a five-year renovation plan that includes at least 120 guest rooms, conference halls, and restaurants. The other nine buildings in the auction carry similar conditions, with starting bids ranging from $1 million to $3.5 million. Each buyer is required to pledge substantial additional capital for restoration work.

Frederic Le Fichoux, a commercial real estate expert who contributed to a 2020 feasibility study on the region, warns that these obligations may not be enough. He argues that restoring isolated buildings does not fix the town's wider infrastructure. "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 advocates for public funding of roads and access to support private investment.

Previous attempts to privatize the sector have faced hurdles. Seven sanatoriums were sold in earlier auctions, but three have since reverted to state ownership. Medea was taken back in 2024 after its previous buyer failed to meet contractual requirements. David Sichinava, a Canada-based academic and former resident of the area, describes the redevelopment strategy as an "all or nothing" gamble. He notes that the town is exempt from casino permit fees that can reach $1.9 million annually elsewhere in Georgia. "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 sale follows a failed 2019 proposal by Bidzina Ivanishvili, the founder of the ruling Georgian Dream party, to purchase the state-owned spas. Prime Minister Irakli Kobakhidze stated on October 20 that the plan was dropped due to the pandemic and de facto sanctions against Ivanishvili.

The buildings have also served as temporary housing for people displaced by conflicts in Abkhazia and South Ossetia since the 1990s. While most residents have moved out, Sichinava estimates 100 to 200 displaced people still live in the structures. Madonna Mushkudiani, who fled Abkhazia in 1992, moved to a town apartment in 2023 after living in a partly derelict building. She said, "We miss every minute we spent there. It was our second home."