Residual High LeverageDespite improvement, leverage above 1x in recent years leaves the company exposed to revenue shocks. For a cyclical lodging operator, meaningful debt limits financial flexibility, raises refinancing and interest risk, and can force defensive actions in downturns that impair long-term growth.
Historical Cash-flow InstabilityPast multi-year negative cash flows demonstrate the business’s sensitivity to demand collapses. This historical volatility implies that strong recent cash generation may reverse under weaker tourism or events activity, constraining investment and debt repayment ability during adverse cycles.
Cyclical Earnings ProfileThe hospitality model is inherently cyclical; prior deep losses (2020–2022) show earnings can deteriorate sharply. Such cyclicality reduces predictability of margins and returns, challenging long-term planning and making the company more sensitive to macro and tourism trends over the next several months.