Chinar Hotel & Spa Naftalan: the operating resort and the case for a second phase

What is known about the expansion

Our register of resorts under construction and in planning tracks this project as an expansion of two operating five-star resorts in Naftalan — Chinar Hotel & Spa (now Chinar Health Hotel) and Garabagh Resort & Spa — managed by TABIA Group (PMD Hospitality until 18 October 2024). This is the working name of the register entry, not a project the operator has announced.

In its public materials the operator speaks about new hotels and the modernisation of existing resorts in general terms. There is no separate budget, room count, phasing or opening date for a second phase in Naftalan. Earlier figures of “450 rooms and USD 120 million” for this project have no evidence and are not used here. being verified

The launch dates the group gave in 2024 belong to other properties: The Central Point Hotel on 3 November, Hilton Garden Inn Baku on 10 November and Aghdam City Hotel on 15 November 2024.

The analysis therefore rests on the operating asset: the site, rooms and beds, the medical routine, occupancy, rates and the corporate structure through which the group funds its hotel business.

Site and land

The resort stands on Shirvan Avenue in the town of Naftalan, postcode AZ4600. Directories give house number 12 or 26. sources disagree

According to the town executive authority, the sanatorium occupies 18.8 ha. Resort catalogues speak of 20 ha of green grounds. For comparison, the group's neighbouring Gashalti Health Hotel has 3.5 ha and Gold & Spa Naftalan, open since 2021, has 2.5 ha.

The Chinar plot carries one main building, so the built density is low. The study concludes that new guest and treatment buildings could be placed on the resort's own land and connected to existing utilities without buying a site. This is a conclusion from the plot size, not a published master plan. research estimate, not confirmed by filings

Reconstruction and opening

Major repairs of the Soviet-era Chinar sanatorium began in May 2007. According to the town, the reconstruction of the 312-bed sanatorium was completed in November 2010. The five-star Chinar Hotel & Spa Naftalan opened in February 2011 with the President of Azerbaijan attending; the opening speech called the restoration of Chinar the start of a new period in the development of Naftalan.

Some travel catalogues give 2013. That year refers to the neighbouring Gashalti or to later upgrades, not to the opening of Chinar. being verified

In Soviet times Naftalan had the Mil (480 beds), Azerbaijan (480), Shirvan (580), Chinar (560) and Goran (800) sanatoriums. The study puts the resort's total throughput at that time at 70,000 people a year.

Alongside the sanatorium the town received new trunk gas, water and power lines, an expressway link towards Baku and Ganja airport, refurbished facades and new lifts in nine-storey housing. research estimate, not confirmed by filings

Technical passport

Under a memorandum between the operator and the public legal entity ABAD, the chain's hotels host ethnic boutiques selling goods from family farms and craft workshops. company data

In-house contractor

The construction company PMD Projects was set up in 2018 (in June, according to the study). The study lists in its portfolio the Central Bank reserve centre in Sumgait, Villa Siena villas, the Renaissance Palace residential complex, the Hovsan Olympic sports complex, the Mazymchay and Samur border posts, wastewater reservoirs and projects in Karabakh. research estimate, not confirmed by filings

An in-house general contractor gives the group control over the cost and timing of a future phase in Naftalan. No construction contract or budget for it exists in public. research estimate, not confirmed by filings

PMD Group holding

PMD Group was founded in 2013 for real-estate development, investment and asset management. The chairman of the executive board is Ruslan Mikailov. The business press describes the group as linked to PASHA Holding; according to the press, PMD Group and PASHA Holding share a registered address at 153 Neftchilar Avenue, Baku.

Its commercial property in Baku includes Chinar Plaza, Dalga Plaza, Sahil Plaza, Bayil Plaza and the BEGOC business centre.

Operator: PMD Hospitality → TABIA Group

TABIA Group dates its history to 2016 as the former PMD Hospitality. As a separate company, PMD Hospitality was registered in August 2018. On 18 October 2024 it rebranded as TABIA Group.

Chinar joined the portfolio in December 2018 and Garabagh Resort & Spa in February 2020. The Wellbeing division now has five resorts: Galaalti Hotel & Spa, Garabagh Resort & Spa, Chinar Health Hotel, Gashalti Health Hotel and Lankaran Springs Wellness Resort. The portfolio has 16 hotels in all, including Chenot Palace Gabala, Excelsior Hotel & Spa Baku, Badamdar Hotel & Residences, Shamakhi Palace Sharadil, Hilton Garden Inn Baku and Aghdam, The Central Point, Aghdam City Hotel, Ramada Plaza Gence, Goygol Lake Resort and Yevlakh City Hotel.

Exhibition materials of 2023 name Orkhan Musa as chief operating officer of PMD Hospitality. research estimate, not confirmed by filings

Operator's share capital

The group funds its hotel business through the operator's share capital. PMD Hospitality was registered with AZN 100,000. In March 2021 the capital rose by AZN 5,794,600 to AZN 5,894,600, a 59-fold increase. In July 2021, the third increase that year, it went from AZN 7,124,600 to AZN 10,284,600. In December 2022 it rose by AZN 16,619,000 to AZN 29,825,600.

From registration to December 2022 the capital grew about 300-fold. The study rounds the total to AZN 30,000,000.

Separately, the capital of the Excelsior hotel company in Baku was raised from AZN 100,000 to AZN 273,000. research estimate, not confirmed by filings

Legal entities in Naftalan

The study describes an own–build–operate structure: property in asset companies, construction at PMD Projects, operations at the operator. Checking showed a different picture for the Naftalan asset companies: in December 2021 YENİ ÇİNAR HOTEL COMPANY ƏMLAK and YENİ NAFTALAN HOTEL COMPANY ƏMLAK, together with the asset companies of the Lankaran and Excelsior hotels, ceased operating and were merged into PMD Group. In November 2022 the new companies PMD Agro Əmlak and PMD Əmlak were spun off from PMD Group; Chinar's asset company is not among them.

The study's claim that Chinar's asset company was spun off again after the merger and holds the property separately is not confirmed. Whether the resort now sits with PMD Group or with one of the new asset companies is not visible in public data. sources disagree

Clinical profile

Treatment is built on baths of native naphthalan. According to the sanatorium's doctors (2019), naphthalan is used for more than 77 conditions: musculoskeletal, skin, vascular, nervous system, gynaecological, urological and digestive. In the operator's positioning and packages the main line is the musculoskeletal system. company data

The 2026 standard treatment package includes meals (dietary buffet), an arrival check-up, basic blood and urine tests, naphthalan and iodine-bromine baths, physiotherapy (infrared, magnetic, laser, ultrasound), Finnish sauna and hammam with the doctor's approval, the pool and consultations with a dietitian, dentist, urologist, gynaecologist, physiotherapist or neurologist. The number of procedures is set by the attending doctor.

• Polyclinic and naphthalan therapy centre
• Physiotherapy, hydrotherapy, therapeutic massage, exercise therapy hall
• Indoor pool 25 × 12 m and outdoor pool
• Diathermy, electromedical equipment and laser units research estimate, not confirmed by filings

Used naphthalan is collected, regenerated, cleaned and laboratory-tested at the level of the Naftalan resort association. research estimate, not confirmed by filings

Naphthalan bath routine

The bath is kept at 37–38 °C and one bath lasts 8–10 minutes. The first baths are given every other day, then 2–3 days in a row with one day of rest. A course is 10–12 baths. According to the doctors, the effect lasts 1.5–2 months after the course. company data

A course of 10–12 baths with breaks takes 12–14 nights. The length of stay is set by the medical routine rather than by the guest, and it drives the throughput of the medical centre. research estimate, not confirmed by filings

The medical department is staffed by resort physicians and internists who graduated from the Azerbaijan Medical University and have years of naphthalan practice. Doctors' names are not given here. company data

Guest flow and occupancy

In 2019 the sanatorium reported an average of 10,000 guests a year, more than 60% of them foreign. Foreign guests pay medical insurance of AZN 2 per person per day on top of the rate. company data

In December 2018, ten days before New Year, the town executive authority reported that 70–80% of beds at the group's three resorts were booked in advance. Capacity: Chinar 353 beds, Gashalti Health Hotel 342 and Garabagh Resort & Spa 264, 959 in total.

In the first quarter of 2025 Naftalan accounted for 3.5% of foreign tourists' overnight stays in the regions, Gabala for 2.7%. The study attributed these figures to 2024 and to all tourists, which is inaccurate.

Capacity and occupancy: estimate

With 353 beds the annual capacity is about 128,800 bed-nights. 10,000 guests staying 12–14 nights make 120,000–140,000 bed-nights, almost the whole capacity. The study concludes that in the high season (May–October) the resort is full, with extra guests in two-bedroom and family suites, and there is no spare capacity in season. research estimate, not confirmed by filings

The 2019 figures may refer to a smaller bed count, and 100% in season is a calculation, not a published occupancy. The firm data point is 70–80% advance bookings in December 2018. being verified

2026 rates

The rate is a treatment package: room, three meals and treatment for one price. The high season is May–October, the low season January–April and November–December. The Premium Two-Bedroom Suite and Presidential Suite are sold per unit.

The two-week packages at AZN 2,170 and 2,730 cited by the study were not found in public price lists. research estimate, not confirmed by filings

For comparison, in May 2019 a room cost AZN 121 for one guest and AZN 205 for two until 1 June, and AZN 143 and 240 on holidays. By 2026 the high-season Standard for one guest costs AZN 195.

The Naftalan market

Naftalan sanatorium prices for 2026 differ by season, whether treatment is included and by building. The table below repeats the price lists as collected in the study; apart from Chinar we have not re-checked them line by line.

All three five-star resorts in Naftalan — Chinar, Gashalti and Garabagh — belong to one group. Chinar's Standard with treatment costs AZN 195 in the high season; the nearest modern competitor outside the group, Gold Naftalan, sells a Standard for AZN 150 without treatment. These are different products.

Public image and distribution

In Azerbaijan's state and business media Chinar is presented as a showcase of regional health tourism and the non-oil economy; at its opening in 2011 its restoration was called the start of a new period for Naftalan.

The group presents Chinar and Garabagh together as a medical cluster at trade fairs: Russian Health Care Week in Moscow, KITF in Almaty and AITF in Baku. research estimate, not confirmed by filings

What supports the idea of a second phase

• Land is available: 18.8–20 ha with one main building; utilities were renewed during reconstruction.
• Seasonal demand exceeds capacity: guest flow and course length fill almost all annual bed-nights. research estimate, not confirmed by filings
• Price above the market: AZN 160–195 for a Standard with treatment against AZN 35–139 at sanatoriums with treatment.
• The market already pays for a new building: +12–14% at two Naftalan sanatoriums.
• The medical core is built: polyclinic, naphthalan centre, 400 m² spa, pool, restaurants.
• The group has its own general contractor and a source of capital — the operator's share capital.

The study concludes that new buildings on the resort's own plot would remove the capacity limit and that the cost per room would be lower than for a resort built from scratch, because the polyclinic, spa and restaurants already operate. There are no figures for cost or margin, and the group has published no investment decision. research estimate, not confirmed by filings

Risks and limits

Not in public data

• Budget, room count, phases and date of a second phase
• Revenue, monthly occupancy and average rate of the resort
• The current holder of the Chinar property
• The operator's capital increases between July 2021 and December 2022
• Medical licence and headcount