AllotCap finances hotel allotment commitments for DMCs and travel wholesalers. We deploy capital against insured receivables so you can secure inventory without draining your balance sheet.
Hotel allotments are intangible, seasonal, and relationship-dependent. Traditional lenders can't underwrite what they don't understand.
Invoice factors need delivered-goods receivables from creditworthy obligors. Future hotel allotments don't qualify.
DMCs need deal-level financing for specific allotments, not equity dilution. Private equity solves the wrong problem at the wrong cost.
A DMC brings a hotel contract or allotment commitment requiring funding. We assess the deal, the hotel, and the booking outlook.
Before capital moves, we insure the receivable through a major trade credit insurer. No insurance, no deal. This is a precondition.
Funds advance to the hotel on behalf of the DMC. An invoice for principal plus financing fee is issued to the DMC.
As bookings convert to revenue, the DMC repays on schedule. If they don't, the insurance claim activates and inventory rights provide secondary recovery.
Every deployed invoice is insured through Allianz Trade, Atradius, or Coface. On default, the insurer pays 80-90% of the insured value. Maximum uninsured exposure: 10-20% of deployed capital.
Contracted hotel rooms carry recoverable economic value. In default, allotments can be resold, reassigned, or cancelled with partial refund depending on hotel contract terms.
Realistic worst-case loss is capped at a fraction of deployed capital. More like senior secured lending than venture exposure.
Regional operators negotiating hotel allotments directly with properties, selling to OTAs, tour operators, and corporate buyers. $5M-$100M revenue.
Destination-focused operators with direct hotel relationships and seasonal cash flow patterns. Concentrated in Mediterranean, Gulf, and Southeast Asia.
Larger intermediaries purchasing room blocks on allocation before travel season. Same cash flow problem at greater scale.
Smaller platforms in growth markets building direct hotel supply. Strong demand-side traction but underdeveloped balance sheets.
Purpose-built trade finance for the companies that power global travel.