Hotel catering subsidies

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  • Hôtels
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Subsidies granted by departments and regions to the hotel and restaurant industry for its modernization, creation or extensions are often invaluable help. All the more so at a time when it is increasingly complicated, even unlikely for small hotels to find financing.Article dedicated to the coronavirus health crisis: click here to see our dossier on the aid for the hotel industry put in place by the government.

The general criteria for allocating aid

The hotel category

It is usually hotels classified as "Tourism" that can benefit from assistance, especially the 2 and 3 stars. The departments of Puy-de-Dôme, Lot-et-Garonne and Lower Rhine support hotels rated at least 2 stars after work, which is also the case in the Midi-Pyrénées, Limousin and Picardy regions.

Location

Areas in difficulty or in need of hotels are favoured in certain regions and departments: Auvergne, the Central region, Gironde, Isère and Lower Rhine.

The type of hotel

Independent and family hotels are favoured to increase their capacity and comfort level. Some departments, such as the Ardèche or the Hautes-Pyrénées, provide more support to the boutique and character hotels. 

The amount of aid

The aid is granted on the basis of a percentage calculation of the amount of HT work to be carried out, on the basis of quotes from companies providing providers that hoteliers must provide. The rate is between 10 and 50% depending on the region and departments. It is in most cases 20 to 25%, the hotelier having to finance the supplement.

Regional aid

The ceiling amount of aid granted varies significantly between regions. Picardy, Midi-Pyrénées and Limousin have the highest "ceiling thresholds." As an indication, regarding the maximum aid granted:
  • The Limousin grants a maximum of 381,000 euros as part of a hotel creation
  • Midi-Pyrenees: 135,000 euros for a creation and 90,000 for a modernization/extension
  • Picardy: 170,000 euros for the creation of a hotel, and 85,000 for its renovation/extension

Departmental aid

In many departments, the amount of aid varies depending on the type of interventions, the category, the geographical location of the establishment and the type of hotel. As an indication, regarding the maximum aid granted:
  • The Gard: 13,300
  • Rhône-Alpes: 35,000 euros (floor of 50,000, Maximum intervention rate 25%)
  • L'Oise: 75,000
In departments that do not offer any specific assistance to hotels or tourist accommodation, hoteliers may receive other subsidies that are aimed at a wider audience, such as helping to start a business. See also: OSEO presents its product, the PPRH

OSEO and the PPRH

Thanks to the intervention of the Caisse des Depots, which amounts to 24 million euros over three years, the PPRH benefits from advantageous rates. The implementation of this loan by OSEO closes the financing plan for the modernization of hotels. It must be considered as conventional bank financing. OSEO is devoting 120 million euros in loans over 3 years for this product.

Who is the PPRH for?

The PPRH is aimed at SMEs in the hotel sector (office hotels and restaurant hotels), whatever their legal form, created for at least 3 years and financially sound. These SMEs are forced to follow a renovation programme allowing their establishment to be upgraded with the new hotel classification (see the article dedicated to this subject at the top of this page).

What investments is it for?

The PPRH can be used :pour upgrades (safety, hospitality, disabled, etc.). for the fixed operating costs incurred by the company, with no revenue consideration, during the duration of the work. Financial restructuring operations are excluded.

One loan, two variants

PPRH CDC/OSEO

It is aimed at hotels of 3 stars or less that are located in agglomerations with less than 500,000 inhabitants:
  • unit amount of the loan: from 40,000 to 120,000 euros.
  • 7-year term, with a 2-year capital deferral.
  • 20 quarterly maturities with linear amortization of capital.
  • 4.17 per cent in March 2010.
  • no guarantees on the company's assets and no personal surety.
  • application fee: 0.40% of the loan; Death Disability Insurance: annual cost of 0.25% of the initial capital.

The OSEO PPRH

It applies to all other projects, wherever they are, regardless of the ranking, including 4 and 5 stars.
  • unit amount of the loan: from 40,000 to 300,000 euros.
  • fixed rate: 5.67% in March 2010.
The other conditions are similar to the PPRH/CDC loan.

THE OSEO guarantee and co-financing

OSEO may propose to guarantee 40% of the associated bank financing (a double amount to the PPRH and a minimum duration of 7 years) and increase this coverage to 70% with the support of the RegionsThe assembly can also provide for co-financing with OSEO financing.

Each funding situation is different

As you will have understood: the aids vary greatly depending on the department, and the particular situation of the institution. Has serfi , we have been helping hoteliers for more than 25 years to find the financing they need to carry out their projects. If you wish, fill out the form below and we'll get back to you to talk about your project together.

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FAQ

What are the general criteria for obtaining aid?

The category of the hotel, the location and the type of hotel (independents, chains) are taken into account.

What is the PPRH Hotel Loan?

This loan is offered specifically to hotel companies, and can go up to €1,000,000 for the renovation of your establishment. 

Do the regions offer subsidies?

Yes, for example: Limousin (up to 381 000€), Midi-Pyrénées (up to 135 000€), Picardie (up to 170 000€). 

Do the departments offer grants?

Yes, and by way of examples: Le Gard (up to 13 000€), Rhône-Alpes (35 000€), l'Oise (75 000€)
Updated on April 25, 2020 at 4:47 PM