Capital grants for the hotel trade

This page was last modified on 12-02-2016

The aid schemes for the hotel trade aim to promote investments concerning the:

  • modernisation or rationalisation of accommodation establishments;
  • expansion of existing establishments;
  • construction of new accommodation establishments as a response to a general economic interest;
  • implementation of certification programmes concerning the quality of services, approved by the Minister of Tourism and recognised by the award of a label;
  • participation in a tourism exhibition or trade fair.
Depending on the case, the level of subsidies can be as high as 20 % of the total amount of investments.

Forms / Online services

Carry out your procedure:

Who is concerned

Eligible businesses

The following can benefit from the aid scheme:

  • owners or operators of existing accommodation establishments who are investing in order to:
    • modernise, expand or rationalise their establishment;
    • implement certification programmes for the quality of services, approved by the General Directorate for Tourism and recognised by the award of a label;
    • participate in a tourism exhibition or trade fair and who seek financing to cover for the costs concerning the rental, set up and management of a stand;
  • persons who are investing in order to build new accommodation establishments as a response to a general economic interest.
Hotel establishments must provide their customers with an accommodation infrastructure and room equipment which meet the needs of tourism and business related stays (non-residential stay).

The hotel service must include:
  • a reception desk open 16h/24h at the minimum;
  • a breakfast service;
  • a lounge and catering room;
  • the daily cleaning of the hotel rooms.

Eligible investments

The following investments only are eligible for subsidies:

  • the construction, expansion or modernisation of an accommodation establishment;
  • the acquisition and improvement of the equipment and furniture, provided the investment is carried out within the framework of a project concerning the construction, expansion or modernisation of an accommodation establishment.

Investments relating to maintenance or simple renovation works as well as to the replacement of furniture which are not within the scope of a modernisation project are not eligible.

Duration and deadlines

The application for subsidies concerning projects exceeding EUR 43,250 excl. VAT must be submitted before the actual investments are made.

How to proceed

Submitting the application

The applicant must submit the duly completed application for a hotel subsidy "hôtellerie" to the General Directorate for Tourism.

The application must be accompanied by:

  • a specific quotation;
  • an investment financing plan;
  • and a projected business plan in the event of a project for the construction of a new establishment.

Modernisation or rationalisation projects

Modernisation or rationalisation projects may be granted subsidies of 10 % of the eligible investment costs provided that after the works 100 % of the rooms will be equipped with:

  • a bathroom with shower or bathtub;
  • a toilet.

The owners and operators of the establishment can be exempted from this requirement in case of major difficulties of a technical or architectural nature.

The subsidy rate can be increased by 5 points (15 % in total) for projects concerning establishments with less than 100 rooms.

Expansion projects

Expansion projects may be granted subsidies of 10 % of the eligible investment costs provided that after the works 100 % of the rooms will be equipped with:

  • a bathroom with shower or bathtub;
  • a toilet.

The owners and operators of the establishment can be exempted from this requirement in case of major difficulties of a technical or architectural nature.

The subsidy rate may be increased by 5 points (15 % in total) for expansion projects in rural areas in all the communes in the Grand Duchy of Luxembourg with the exception of Luxembourg city, Strassen, Walferdange, Hesperange, Pétange, Differdange, Sanem, Schifflange, Esch-sur-Alzette, Rumelange, Kayl, Bettembourg and Dudelange.

New construction projects

New construction projects may be granted subsidies of 10 % of the eligible investment costs provided that after the works 100 % of the rooms will be equipped with:

  • a bathroom with shower or bathtub;
  • a toilet.

The subsidy rate may be increased by 5 points (15 % in total) for new construction projects in rural areas in all the communes in the Grand Duchy of Luxembourg with the exception of Luxembourg city, Strassen, Walferdange, Hesperange, Pétange, Differdange, Sanem, Schifflange, Esch-sur-Alzette, Rumelange, Kayl, Bettembourg and Dudelange.

Implementation of programmes for the certification of the quality of services

Implementation projects of programmes for the certification of the quality of services recognised by the General Directorate for Tourism and sanctioned by the award of a quality label may receive a subsidy of 20 % of eligible investment costs.

Participation in tourism exhibitions and trade fairs

Projects that include a participation in a tourism exhibition or trade fair can receive a subsidy to finance the additional costs concerning the rental, set up and management of the stand, provided:

  • the owner or operator of the accommodation establishment has received a capital grant or interest subsidy in the 3 years prior to their participation in the exhibition or fair;
  • the participation in exhibitions and trade fairs is used to promote the establishment having received the subsidy;
  • the participation in additional fairs and exhibitions is complementary to the events on the annual calendar of tourist fairs and exhibitions offered by the national bodies for the promotion of tourism.

Special cases

In order to be granted an increase of 5 points, modernisation, expansion or construction projects have to meet certain criteria:

  • the hotel must have:
    • a hotel lobby with the reception desk and an open sitting area open at least 18h/24;
    • an elevator servicing each floor for the customers if the hotel has more than 2 floors;
    • a restaurant offering at least:
      • a menu with 3 courses of your choice;
      • or meals a la carte;
      • or a buffet;
    • a parking for their customers;
  • the rooms must have:
    • a floor surface of at least 18m² (single room) or 24m² (double room), bathroom and entrance hall;
    • a separate entrance;
    • a normally sized window with a view to the outside and the possibility to darken the room;
    • a bathroom with efficient ventilation, a shower or bathtub, washbasin and a toilet;
    • central heating or a similar heating system;
    • in addition to the standard equipment:
      • a desk with a chair and a lounge area with a table and comfortable armchairs;
      • a colour TV adapted to the size of the room;
      • a telephone with a direct outside line;
      • internet access in the room.

The subsidy rate may also be increased by 5 points:

  • for projects:
    • which differ in that they are specialised in the areas of sports, health or congress tourism;
    • concerning the fitting out of buildings with a cultural value;
    • specialised in 'design-hotels' i.e. which differ from conventional standards in terms of aesthetics and design with a concept or theme of their own;
  • for investments:

In any case, the level of subsidies can not exceed 20 % of the total amount of investments.

Payment

The financial aid is paid out in the form of:

  • either a capital grant, i.e. a single payment when the project is finalised;
  • or interest relief.

The aid is paid upon presentation of the final financial statements including receipted invoices.

Repayment

Beneficiaries of the subsidy lose all or part of the aid in the event the tangible and intangible assets financed are no longer used for the business purpose they were intended for at the time the financial aid was granted.

The beneficiaries must reimburse:

  • the full amount of aid granted if the change in business purpose occurs before a 5 year deadline as from moment the aid was granted;
  • half of the aid, minus 10 % for every additional year, after 5 years of business operation.

Who to contact

Ministry of the Economy
19 - 21, boulevard Royal
L-2449 - Luxembourg
Postal box BP 86, L-2937
Luxembourg
Phone: (+352) 247-84751
Fax: (+352) 47 40 11
Email dany.duarte@eco.etat.lu