Elevated Leverage RemainsDespite improvement, leverage remains high for a cyclical hotel operator, leaving the company sensitive to downturns and to refinancing rates. Persistent elevated debt can constrain capital allocation, raise interest costs, and amplify downside in slower travel periods.
Margin VolatilityMargins have swung materially year-to-year driven by occupancy, pricing and cost variation. Such volatility undermines predictable earnings power and complicates long-term planning for reinvestment, dividend policy, and debt servicing under adverse demand scenarios.
Cash-flow CyclicalityHistorical swings in operating and free cash flow show exposure to travel cycles. Even with recent recovery, cyclicality raises the risk that FCF could compress quickly in downturns, limiting discretionary spending and increasing reliance on external financing when markets tighten.