Historical Earnings And Cash VolatilityThe company’s track record includes deep losses and negative cash flow in 2020–2022, showing vulnerability to demand shocks. That history implies earnings and cash generation can revert under stress, raising structural risk for a hospitality business exposed to macro and travel cycles.
Remaining Sizable LeverageAlthough leverage has fallen, debt still exceeds conservative benchmarks for cyclicality. Meaningful debt can constrain capital allocation, increase interest sensitivity, and limit ability to weather prolonged downturns in tourism or event demand without further deleveraging.
Cyclicality Risk To Cash Flows And EarningsBusiness reliance on travel, weddings and leisure makes revenues and margins highly cyclical. Even with recent recovery, structural sensitivity means multi-quarter demand drops could rapidly weaken cash flow and profitability, pressuring liquidity and strategic plans.