High LeveragePersistently high debt-to-equity raises refinancing and interest-coverage risk and constrains capital allocation. In the cyclical hospitality sector, elevated leverage reduces resilience to demand shocks, limits strategic flexibility, and extends the timeline for a durable recovery absent clear deleveraging.
Volatile Earnings GrowthA sharp EPS contraction indicates notable earnings volatility or one-off pressures. Volatile profitability weakens the company's ability to build reserves, fund capex internally, or accelerate debt reduction, increasing execution risk for sustaining margin and cash-flow improvements during slower periods.
Recent Revenue WeaknessA recent revenue decline suggests top-line inconsistency despite margin gains. If revenue momentum does not recover, fixed-cost absorption could erode margins and impair cash generation, making deleveraging and balance-sheet repair more difficult over the medium term.