Project finance for greenfield hotels with extended moratoriums, refurbishment term loans for existing properties, and acquisition finance for hotel transactions. Cash-flow structured around RevPAR ramp-up.
BIG LOANS arranges ₹100 crore-and-above debt for Indian hospitality — hotels (5-star urban, mid-scale, business hotels), resorts (leisure, MICE), and acquisitions. Hospitality has the longest moratoriums of any sector (3-5 years for greenfield hotels) because of the multi-year RevPAR ramp-up after opening. Term loans typically 8-12 years; project finance 10-15 years; refurbishment finance 5-7 years. Seasonal cash flow is structured into the repayment schedule, particularly for leisure / resort properties.
Hospitality debt is structurally different from any other real-estate adjacent product. Cash flow ramp-up takes 3-5 years post-opening as the property establishes its market position, customer base, and RevPAR. Lenders structure moratoriums accordingly — construction period + 2-3 years post-opening before principal repayment begins.
Beyond the ramp-up, hospitality has seasonal cash flow (October-March peak for leisure, weekday-skewed for business hotels), RevPAR risk tied to broader tourism / business sentiment, and regulatory complexity (heritage classifications, environmental clearance for resort properties, GST treatment). Lenders price all of this in.
Common funding situations across hospitality.
New 5-star or mid-scale hotel construction. ₹150-1,000 Cr project finance with 3-5 year moratorium covering ramp-up.
Leisure resort with seasonal cash flow. Backwater, heritage, hill-station properties. Specialized structuring needed.
Refurbishment / upgrade capex for existing operating hotel. Shorter tenor (5-7 years), simpler structure.
Acquisition of an existing operating hotel — either single asset or portfolio. Senior + mezz package structured.
Hotel + commercial + retail mixed-use development. Combined construction finance with phased revenue mix.
Restructuring of existing hospitality debt impacted by 2020-22 cash-flow shocks. Refinance into longer tenor.
Hospitality has highly specialized structuring needs.
Hospitality lending requires sector expertise. A limited number of lenders are genuinely active.
HDFC Capital, Piramal, Kotak — particularly active for established hotel groups (Marriott franchise, Taj, ITC, Lemon Tree).
HDFC Bank, ICICI, Axis fund top-tier branded hotels with strong operator agreements.
Active for non-branded properties, acquisition finance, and portfolio deals. Higher pricing but more flexible structuring.
Active for international branded hotels (Marriott, Hyatt, Hilton). ECB / FCNR(B) sometimes used for hard-currency receivable matching.
Active for heritage / boutique properties — smaller tickets, longer relationships, more patient capital.
Same 5-stage process for any large-ticket corporate debt mandate, applied to hospitality specifics.
NDA, then a short call to understand the business model, key financial drivers, capital need. Sector-specific risk factors mapped early.
Optimal facility mix, tenor, security. Lender shortlist tuned to sector appetite — banks for vanilla, NBFCs / AIFs for specialty structures.
Sector-grade Information Memorandum, financial model, market analysis. Pitched to shortlisted lenders in parallel.
Multiple sanctions negotiated in parallel on pricing, covenants, security. Final lender(s) selected.
Loan agreement, security creation, CPs satisfied, drawdown. Sector-specific compliances (RERA, FEMA, SEBI, etc.) handled along the way.
Share a one-page brief on your business and funding need. We respond within one working day with feasibility, structuring and lender shortlist tuned to your sector.