GHK Hospitality & Infra Ltd. has raised debt financing worth US$8.5 million

January 2024 — GHK Hospitality & Infrastructures Ltd. (GHK Hospitality) has successfully raised US$8.5 million in debt financing. This fundraising will enable the company to overcome its cash flow and capex issues.

GHK Hospitality owns a 5-star hotel with 130 rooms located in Ahmedabad. It has a management arrangement with a top-tier hotel operator, India’s premier chain of luxury hotels. It faced tough industry conditions during the COVID-19 pandemic and needed to restructure and rebrand to ensure its survival, resulting in cash flow and capex challenges.

Our role in the transaction

Oaklins’ team in India worked on realigning cash flow from GHK Hospitality’s recently launched hotel operations, creating a refinanceable structure facilitating debt consolidation with commensurate cash flows. It was able to raise long-term debt for the company, replacing high-cost bridge funding. Furthermore, it placed the right-sized facility in a structure which was not only cost-efficient, but also significantly elongated due to the newly improved liquidity profile of the company. This resulted in repayments being in sync with cash flow, in addition to low-cost funds after bridge loan refinancing.