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