This paper provides an empirical examination of the determinants of borrowings in hotel companies listed on Bombay Stock Exchange. A sample of 50 hotel companies listed on BSE was studied and it is revealed that the ‘company size’, ‘return on capital employed’ and ‘non-debt tax shield’ are the most important determinants of total debt ratio in hotel industry in India. While the ‘collateral value of assets’, ‘company size’ and ‘return on capital employed’ are the most important determinants of long term debt ratio in hotel industry in India. The paper has been divided into five sections i.e. backdrop, review of literature, research methodology, results and discussions followed by conclusions. Key Words: Determinants, borrowing, Hotel industry, India