Mumbai: Axis Bank has launched a dedicated Hotel and Hospitality Programme under its MSME portfolio, becoming the first private sector bank in India to introduce a dedicated programme for the hotel and hospitality sector.
The Hotel and Hospitality Programme offers customised financing solutions for eligible hotels and resorts.
The Bank has also signed Memorandums of Understanding (MoUs) with the PHD Chamber of Commerce and Industry’s Tourism and Hospitality Wing (PHDCCI) and the Travel & Tourism Association of Goa (TTAG) to deepen its engagement with India’s travel, tourism and hospitality sectors.
India’s tourism industry is being driven by a wider base of travellers visiting new destinations, spending more per trip and seeking improved accommodation and experiences.
For hotels and resorts, this has resulted in increased investment in new properties, renovations and guest experiences.
A significant part of this growth is being driven by mid-sized and independent hospitality businesses seeking financing and banking solutions tailored to their operating requirements.
Responding to these requirements, Axis Bank has designed its offerings around the specific needs of the hospitality sector.
The Hotel and Hospitality Programme has been structured around the operational requirements of hotels and resorts, taking into account hospitality-specific parameters to support expansion, renovation and asset creation plans.
The MoUs signed with PHDCCI and TTAG are aimed at strengthening the Bank’s industry engagement through closer interaction with hotels, resorts, travel operators and allied businesses.
The partnerships are intended to keep the requirements of the sector at the centre of how banking and financing solutions are shaped.
Vijay Shetty, Group Head – Commercial Banking Group, Axis Bank, said: ” MSMEs run deep across every part of the Indian economy, each with its own way of working. Our effort has been to look beyond a single lending template and shape propositions that reflect the essence of the sector.
Tourism and hospitality is one such area, where the way a hotel or resort earns, the seasons it works through and the experience it offers to its guests often ask for a different lens.
The Hotel & Hospitality Programme has been built with that in mind, and our associations with PHDCCI and TTAG help us stay engaged to the businesses and the industry conversations around them. As more of the country discovers travel, we would like to stand alongside the enterprises that make those experiences possible.”
The Hotel and Hospitality Programme is available across India, subject to eligibility criteria. The programme offers financing and banking support designed specifically for eligible hotels and resorts.
Key features of the Hotel and Hospitality Programme include:
- Term loans and working capital facilities for eligible 2-star, 3-star and 4-star hotels and resorts.
- Repayment tenure of up to 10 years.
- Sector-specific underwriting based on occupancy, guest ratings and cash flows to enable faster lending decisions.
- Dedicated relationship management support with customised financing solutions.
The Hotel and Hospitality Programme is aimed at supporting hotels and resorts with their financing requirements as they invest in expansion, renovation and asset creation.
Axis Bank’s MoUs with PHDCCI and TTAG will further its engagement with businesses operating across India’s travel, tourism and hospitality ecosystem. The partnerships cover engagement with hotels, resorts, travel operators and allied businesses.
India’s tourism and hospitality sector continues to create opportunities across accommodation, food services, travel, leisure and destination-linked businesses.
Through the Hotel and Hospitality Programme and its partnerships with industry associations, Axis Bank is focusing on supporting enterprises across the sector’s value chain as they invest, grow and cater to India’s growing base of travellers.
Also Read: Axis Bank Signs MoU with FHRAI to Boost Hospitality Sector Financing
