Azerbaijan’s strategic location as a gateway between Europe and Asia has positioned it as a popular destination for both business and leisure travelers. The country’s rich cultural heritage, diverse landscapes, and vibrant cities contribute to its appeal as a tourist destination. The government’s efforts to promote tourism through initiatives such as visa liberalization have also played a significant role in driving the growth of the Hotels market. This has been reflected in a steady year-on-year growth in the sector since 2020. Even though growth rates have slowed down in the least two years, annual growth rates to the end of the decade are still expected to be around 4%.

One prominent trend in the Azerbaijani Hotels market is the rise of boutique and luxury hotels. These establishments cater to the growing demand for high-end accommodations among both domestic and international travelers. Additionally, there is a noticeable increase in the number of eco-friendly and sustainable hotels in Azerbaijan, reflecting a growing awareness of environmental issues among consumers.

The Parallel Hotel in Baku is one of these smaller boutique hotels. Inspired by its desire to cater to the environmental concerns of its target audience, the hotel took advantage of the green investment campaign launched by Respublika Bank under the EU4Business-EBRD Credit Line and took a loan to purchase a hybrid car to enhance its customer service.

After successful verification of the project, the company received a 10% grant on the loan amount, funded by the European Union. With this investment, the company now meetings the following European Directives:

• Motor vehicles and Trailers Directive (Regulation (EU) 2018/858) – SO2 emission performance standards for new passenger cars and for new light commercial vehicles (Regulation (EU) 2019/631)