Volatile Net ProfitabilityIrregular net income and episodes of losses point to unstable bottom-line performance despite steady gross margins. This volatility undermines free cash generation predictability, complicates reinvestment planning, and raises execution risk for growth or debt servicing over the medium term.
Inconsistent Free Cash FlowPeriodic negative free cash flow signals that operating cash doesn't always cover capex and investment needs. Persistent FCF inconsistency constrains capital allocation, limits the ability to self-fund renovations or new openings, and increases reliance on external financing over several quarters.
Rising Total DebtAn upward trend in total debt increases interest and refinancing exposure for a capital-intensive hotel business. If operating volatility persists, higher leverage can magnify financial stress, restrict strategic flexibility, and elevate the risk of covenant pressure or tighter liquidity during downturns.