Hotel Economique Catalunya SL

Presentation of the company

Created in 2012, Hotel Economique Catalunya SL is active in the hotel sector. The company, managed by Laurent Gauze, has 12 employees and is based in Granollers. The company is part of IPIH Group which manages 9 hotels in Spain and Portugal.

The company’s main activity is:

• Management of 2 hotels in Catalonia under the brand IBIS (Accor Group). 

Project Description

The company wishes to borrow 300 000 € over 48 months to finance part of the refurbishing of the hotels. The rest will be financed with own funds. This project will be realised next month.

The amount offered on the platform is limited to 147 000€, which is in line with the regulatory limits.

This project is a medium-term loan with a capital amortisation deferment and as such presents a different method of capital repayment than standard projects. The first 3 months, the lenders will only receive interest; the following months, the lenders will receive interest and principal amortization. This principal repayment profile matches the borrower’s financing needs while allowing lenders to earn a higher amount of interest.

Analyst’s Opinion

With a turnover of 2 861 567 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

Increasing sales and profitability is related with the growth in the occupancy rate of the hotels. The forecast is based on 2017 performance.

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,17 and a good financial structure, with a forecast net debt / ebitda ratio of 2,71 and a net debt / shareholder equity of 280%.

The analysis of the project leads to a credit rating of B and a 6,0% annual interest rate.

Strong points:

• Good historical performance based on diversified client base.
• Correct repayment ability with a forecasted FCCR of 1,17 reinforced by the support of shareholders.
• Strong know-how in the hotel sector and good relationship with the franchisor (Accor).

Points of vigilence:

• Strong competition in the sector.

*The multiple of FCCR at 1,17 means that the company has a safety margin of 17% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (Informa, Asnef). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.