By Yasmine EDDAM
16 April 2025
The world of business financing relies heavily on trust, but also on solid guarantees. Securities, the legal mechanisms that enable a creditor to secure repayment of its debt, take a variety of forms. Some are general, while others, more confidential, have been designed to meet the specific needs of certain business sectors. For over a century, the hotel industry, with its substantial material investments, has benefited from a dedicated tool: the hotel warrant. Little known to the general public and even to many legal experts today, the hotel warrant was a form of movable security enabling hotel operators to borrow money by offering their equipment as collateral, without having to dispose of it. It was an ingenious idea that originated in the early twentieth century, but now belongs to legal history. The scheme was repealed in 2021. Understanding how it worked in the past is not just a historical exercise; it also makes it possible...
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