Why the 1–7 January window works in your favour
Georgia marks New Year's Day on 1 January and 2 January, then Orthodox Christmas Day on 7 January, all nationwide public holidays. That leaves five working days between the two, and hotels in Tbilisi fill them with domestic visitors from Gori, Kutaisi and Zugdidi as much as with foreign guests. The practical consequence is simple: rooms in the centre are cheapest and most available on 3–6 January, while 31 December and 1 January carry the year's tightest supply. If your dates are flexible, arriving on 2 January and leaving after the 7th cuts both cost and crowds.
Book early for the two peak nights rather than the whole week. A two-night hold covering 31 December and 1 January in the Sololaki or Vera districts usually secures a better rate than a seven-night block starting on the 30th, and you can add cheaper nights either side once the festival demand clears. Guesthouses in the old town often close their online calendar over the holidays and take enquiries by phone, so check twice before assuming a place is sold out.
Neighbourhoods to choose in Tbilisi — and one to skip
For the fireworks and the crowd, stay within walking distance of Freedom Square and Rustaveli Avenue: Sololaki, Mtatsminda and the streets above Chavchavadze Avenue. Expect the upper end of the city's winter range here, and ask explicitly whether the room faces the street, because the celebrations run late. If you want quiet, Vake and Saburtalo are 10–15 minutes by metro from Rustaveli station and cost noticeably less, with apartment-style hotels that suit families.
Skip the cheap rooms clustered around the Didube bus station. They look like good value on a map, but you will spend the holiday evenings in marshrutkas and taxis rather than on Rustaveli, and the saving rarely covers the fares. If you are arriving by train from Batumi or Kutaisi, a single night near Tbilisi Central Station before moving into the centre is fine — just do not make it your base for the week.
Batumi, Kutaisi and the mountains in winter
Batumi is mild and busy over New Year, with the seafront promenade and Europe Square drawing visitors, but many seafront cafés reduce hours in January. Hotels along Rustaveli Street and Ninoshvili Street discount heavily outside the two peak nights, making 3–7 January a genuinely good deal. Kutaisi, served by its own airport, works as a quieter base for the Gelati and Bagrati cathedral areas; rooms near the central square are inexpensive and the city is a sensible stop if you are flying in or out.
Mountain stays need honest expectations. Gudauri and Bakuriani operate for the ski season, but road conditions on the Georgian Military Highway and the Borjomi road can change quickly, and guesthouses in Kazbegi run reduced services in deep winter. Book mountain accommodation only with a cancellation option, check whether the property has its own generator, and keep one buffer night in Tbilisi before your flight home. For most first-time visitors I would book Tbilisi for the full week and take a single overnight in Gudauri rather than split the trip.
Booking tips that actually move the rate
Reserve the two festival nights first, then negotiate the shoulder nights. Georgian hotels frequently price 31 December–1 January as a package with dinner included; ask what the package contains before comparing it with a room-only rate elsewhere. Confirm the check-in desk hours over the holidays, since smaller properties run reduced staffing on 1 and 2 January, and request written confirmation of the total, including any holiday supplement, rather than relying on the booking screen.
Pay attention to location relative to the metro rather than to the airport. Tbilisi airport is roughly 20–25 minutes from the centre outside peak hours, but the road past Ortachala jams badly on holiday evenings. A hotel near Avlabari or Marjanishvili metro saves more time across a week than a cheaper room on the city's edge. Travellers arriving on 7 January should note that some businesses close for Orthodox Christmas Day itself, so arrange airport transfers in advance. Check the official site of any venue or event you plan to attend for times and details.