JP TRAIBLAZING MAGAZINE
The DOWNTURN
OMG, Now what do I do? BY JOSE PINTO
T
he obstacles a hotel
it cannot be done tomorrow, it’s
owner / investor
gone”. In hotels and hospitality
faces once their hotel
services we must do today what we
revenues decline by
have to do today, we cannot leave
factors beyond their
for tomorrow. Be focus all the time
own control; such as pandemics,
especially during crises.
strikes, social unrest and others like, the new hotel competitors entering
It’s easy to see just how many facets/
the market, cash flows fall just goes
constituents the owner or investor
negative and tensions start rising.
has to put up to communicate and
interact with and especially with
As so, the upper-cycle starts to slow
their lenders who are expecting their
and the Owners/Investors, who
returns. Knowing that cash flows
have relied on their management
will be insufficient to their hotel
company, start no accepting their
debt service or pay off the loan at
words and losing the trust, and
maturity is the first step.
therefore start seeking independent advice in advance of a final default.
Not every hotel consultant has the
Hotels and hospitality are different
experience to deal with negative
from most other businesses and as
financial factors, only a very
we say “what we didn’t do today”
experienced one, who has gone
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