Hotel cash flow diver­si­fi­cation

The Corona pandemic once again showed it very painfully: cash flows of hotel properties can be very volatile in uncertain times.

It is not only pandemics or other unpre­dictable events that have a major impact on hotel cash flows. Even in ordinary years, hotel cash flow can fluctuate signif­i­cantly. The objective of this assignment was thus to identify the possi­bil­ities of smoothing or mitigating these fluctu­a­tions through continuous revenues in order to ensure solvency and staff retention. Which property types and utiliza­tions promise the greatest stabi­lizing effects in this regard?

The procedure included the following steps:

• Identi­fi­cation of possible cash flow strategies based on the existing properties and land reserves
• Target group segmen­tation and utilization concept for properties that offer devel­opment potential, taking into account the hotel strategy (synergies/additions)
• Assessment of the economic viability of various devel­opment scenarios incl. assessment of cash flow stabi­lization effects
• Defin­ition of a specific procedure strategy for the realization and devel­opment of the existing poten­tials