Earnings VolatilityA sharp ~26% decline in EPS points to earnings volatility that can persist if occupancy or pricing weakens. Lower EPS constrains retained earnings, reduces per-share profitability trends and makes multi-month forecasting and dividend consistency more challenging.
Margin VolatilityFluctuating EBIT/EBITDA margins reflect sensitivity to occupancy cycles, labor and input cost swings. Persistent margin variability reduces predictability of cash flows, complicates ROI assessment on new properties and makes long-term margin sustainability uncertain.
Rising CapEx PressureHigher ongoing capex to upgrade and maintain hotel assets has compressed free cash flow growth. Elevated maintenance and growth capex can limit distributable cash, raise funding needs and reduce flexibility to pursue asset-light expansion or return capital to shareholders.