The Federal Agency for Tourism has launched a program to issue concessional loans for the construction and reconstruction of hotels.

Now, entrepreneurs who implement investment projects in the hotel business will be able to receive funding until 2024 at a rate of 3 to 5% per annum. The Government allocated 18.8 billion rubles for this.

This support measure will allow investors to use borrowed funds to build or reconstruct hotels of a category of at least three stars, with an area of ​​5,000 sq. m or with rooms from 120 rooms, as well as sanatoriums. The term of the loan agreement is up to 15 years inclusive.

Rostourism approved the criteria for the selection of investment projects, the minimum and maximum amounts of loans, and also opened the acceptance of applications from banks that will become participants in the program (for more details — https://tourism.gov.ru/contents/documenty/lgotnoe-kreditovanie-v-turizme/).

The accredited participating banks will select potential borrowers and provide Rosturizm with a list of investment projects applying for concessional lending. The final decision on granting loans will be made by Rosturizm together with the Government Commission on Tourism.

The key task of the program is to create conditions for investors so that hotels are built where there is a shortage of them. The appearance of a larger number of modern hotels and the renewal of the room stock will increase competition in the market, which will have a complex effect on the ratio of price and quality of rest in Russia.