Elevated LeverageDespite improvement, a ~3.5x debt‑to‑equity ratio leaves the company highly leveraged vs peers. High leverage constrains financial flexibility, increases interest and refinancing risk, and magnifies downside sensitivity if demand softens over the medium term.
Thin, Volatile MarginsRelatively thin margins and historical earnings volatility make profits vulnerable to small demand shocks or cost increases in the travel/lodging leisure segment. Limited margin buffers reduce ability to build reserves or absorb shocks without cutting investment or raising prices.
Weak Cash ConversionFCF at ~45% of net income and modest coverage ratios indicate working‑capital or reinvestment needs are material. Slower cash conversion reduces capacity to pay down debt quickly or self‑fund expansion, possibly necessitating external financing in adverse conditions.