Hotel profit margins are under pressure from a multitude of factors.
Competition from disruptors such as the sharing economy and serviced apartments, along with the price pressure exerted by OTAs, means hotels must balance customer experience with cost cutting. Political uncertainty around Brexit and a weak pound means that a lot of the hospitality sector’s workforce has begun relocating back to the other side of the channel.
While many of these pressures are difficult to either influence or protect against, there are financial instruments available to protect against two key threats to profit margins – rising interest rates and volatile currency movements.
Download this report to find out how to manage these risks to ensure certainty of debt servicing costs and currency exchange rates.