Basic concept of hotel financing

Hotel fund-raising: refers to the financial activities that hotels raise funds needed by hotels economically and effectively through fund-raising channels and capital markets according to the needs of their production and operation, foreign investment and capital structure adjustment.

When the hotel needs funds for development, it should take appropriate ways and channels to obtain the required funds according to the scale and capital structure of the hotel. As far as raising funds is concerned, the most important ways are to raise equity funds and debt funds.

Fund-raising purpose: to meet the needs of starting a business; Meet the needs of production and operation; Meet the requirements of capital structure adjustment; Seek the requirements of enterprise development and growth.

The function of hotel financing:

1. Raising funds is the premise to ensure the normal production and operation of the hotel, and it is also the basis for seeking the development of the hotel.

2. Doing a good job in fund-raising can not only reduce the cost of capital, but also create more feasible or favorable space for business or investment; But also can reduce financial risks and increase the economic benefits of the hotel.

3. Raising funds is the starting point of the hotel fund movement, which will affect or even determine the scale and effect of the hotel fund movement.