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Cap Hospitality By Bank Of Africa

A FINANCING PROGRAM FOR HOTEL UPGRADING

Do you need to increase your establishment's accommodation capacity and improve the quality of your lodging? Do you want to upgrade your structure for better competitiveness in anticipation of upcoming sporting events?


BANK OF AFRICA supports the tourism sector with "Cap Hospitality," a joint credit combining bank debt and subordinated debt. This financing is granted to Classified Tourist Accommodation Establishments (EHTC) and benefits from a total state coverage of the joint credit’s interest, thus facilitating the funding of your establishment’s upgrading programs (renovation and extension).


The CAP HOSPITALITY mechanism can be combined with other financing/subsidy programs that may be granted by the State to eligible businesses, including the GO SIYAHA program by MAROC PME. This will provide you with an additional funding source to support your project.


6 Key Reasons to Choose Cap Hospitality:

  • Competitive financing conditions (favorable rates, longer maturity, and deferred repayment options);
  • No study fees for the subordinated credit charged to the company;
  • The repayment period for the junior credit (subordinated debt) is 3 years longer than the bank credit;
  • Capital deferral on the junior credit (subordinated debt) can be up to twice the deferral period of the bank credit;
  • The senior bank credit can benefit from the Tamwilcom Damane Istitmar guarantee;
  • The State reimburses the EHTC quarterly for the gross interest related to the Joint Credit throughout its entire duration.


FAQ


Who can benefit from Cap Hospitality?


Companies managing Classified Tourist Accommodation Establishments (EHTC) that meet the following criteria:

  • The company has not undertaken renovations for more than 5 years, or in the context of expanding its establishment, or in the case of acquiring an EHTC that is out of business;
  • The company must have at least 3 years of operational history (projects housed in newly created companies will be assessed on a case-by-case basis);
  • The company must not be under conciliation, safeguard, judicial restructuring, or liquidation proceedings;
  • The company must have a bank rating that does not correspond to the "Default Risk" class;
  • The company and its shareholders (individual or corporate) must not have any downgraded debt starting from a pre-doubtful level with the Bank at the time of granting the Joint Credit;
  • The company must have a debt ratio before setting up the Joint Credit that is less than or equal to 5.


What is Cap Hospitality by BANK OF AFRICA?


Cap Hospitality is a Joint Credit (Bank Credit + Subordinated Debt), intended for financing the upgrading of eligible EHTCs within a limit of 100 million MAD, based on the following structure:

  • Subordinated Debt "Junior Credit": Up to 1/3 of the Joint Credit;
  • Bank Credit "Senior Credit": At least 2/3 of the Joint Credit.


What Types of Operations Can Be Financed by "Cap Hospitality"?


The investment programs of eligible EHTCs must focus on:

  • Renovation and extension works of the EHTC;
  • Security and accessibility compliance works;
  • Acquisition of new equipment, furniture, and materials;
  • Acquisition of an EHTC that is out of business combined with a renovation program (with a ceiling of 30 million MAD);
  • Implementation of an energy efficiency program within the EHTC.


How to benefit from "Cap Hospitality"?

1. Connect to the platform: www.smit.gov.ma/caphospitality
2. Fill out the forms and upload the required documents.
3. Once the request is reviewed by SMIT, an accessibility certificate is issued directly to BANK OF AFRICA to initiate the credit file review.
4. BANK OF AFRICA processes the joint credit request and proceeds with the agreement with the EHTC.