*written by Assured Hotels
Whilst very early days 2021 has started in much the same way as last year finished, we are however still confident that towards spring and into the second quarter, where we will start to see the opportunity for real recovery through slow but sure lifting of restrictions. It is clear that without a sustained return to social interaction and unrestricted travel we will not see confidence driving tangible recovery, even if that lifting is gradual.
We therefore continue to plan for that recovery, and particularly a rigorous focus on cash flow and costs that we still need to meet despite another enforced period of closure.
What’s the better option, planning to trade with unknown demand or for a continued period of mothballing?
In truth probably both, but the right answer to this question will undoubtably be different from one region or even hotel to another. So, with that in mind Assured hotels have approached this with individual scenario-based strategies, depending on an analysis of location specific factors. For example, when looking at demand and forecasts, which markets were prevalent to a given business prior to March 2020, and will these likely return? Or does a business need to adapt and attract alternative or additional markets?
Nobody can as yet know a date when that confidence will return, and with at least 2 difficult months to navigate alternative options to soften the impact of no turnover could be adopted. Across our different locations since March, we have established workable options, which when applied in the right conditions could mitigate costs in the immediate term. Then once pressure is even slightly eased on cash flow it could mean different funding decisions or allow a more measured approach towards re-opening once confidence and demand is at that much desired sustainable level from the spring. Put another way what would be the point in another false dawn and re-launch when the volume is not there potentially inviting more yet unknown challenges?
An open and honest confidential discussion with us would cost nothing, and it just might give the cash flow forecast the different complexion required to support a survival plan. Read our last article on cash flow…. https://www.assuredhotels.co.uk/downloads/RECOVERY-Issue-2-Winter-Cash-Flow-Forecast.pdf
Supporting Stakeholders – meet with us on a no obligation basis
In direct response to ongoing challenges faced by the hotel & hospitality sector Assured hotels will be offering no obligation meeting time to sector stakeholders.
We will be providing access to our senior team to discuss any challenges. We have made our significant experience and resources available without charge to cover all of the main disciplines of finance, procurement, sales and revenue management, plus funding and government support access.