Top 5 Financial Problems Small Hotels Face | Antravia Advisory

5 Financial Problems Small Hotels Face (and What To Do About Them)

Running a small hotel isn’t just about full rooms and happy guests. It’s also about knowing where the money is going—and making sure it’s actually coming in.

From working with independent hotels, I’ve seen the same few financial issues come up again and again. Some are easy to ignore at first. But left unchecked, they can hold your business back—or worse.

Here are five of the most common problems small hotels face, and what you can do to fix them.

1. Cash Flow is Unpredictable

You’re flush during peak season and dry in the shoulder months. Meanwhile, OTAs take their time paying you, suppliers want cash up front, and staff costs keep ticking along.

Fix: Set up a rolling 13-week cash flow forecast. It doesn’t need to be fancy—just something simple that gives you a clear picture of what’s coming in and going out. Once you can see the pinch points, you can plan around them.

2. Pricing is Based on Instinct, Not Data

Too many hotels either undercharge out of fear, or overcharge and lose volume. Either way, the strategy is reactive.

Fix: Track competitor pricing and review your occupancy trends. Even a basic understanding of your ADR compared to similar hotels can help you make smarter pricing decisions. You don’t need dynamic pricing software—just better awareness.

3. No Real Financial Visibility

When I ask hotel owners, “How much profit did you make last month?” too often, the answer is a shrug. That’s not a criticism—it’s just what happens when there’s no monthly reporting in place.

Fix: Start with a basic monthly P&L. Track RevPAR, occupancy, and key costs. You don’t need a finance department to get clear on the numbers—you just need a rhythm.

4. FX is Quietly Eating into Margin

If you accept bookings in EUR, USD, or other currencies, and convert them without thinking about timing or cost, you’re losing money without realising it.

Fix: Use a multi-currency platform with transparent rates and low fees. Don’t rely on your bank—they’re usually the most expensive way to convert. Even a small change here can add up quickly.

5. Personal and Business Finances Are Mixed

It starts with one supplier paid from your personal card or cash taken from the till “just for now.” But over time, this creates confusion, missed deductions, and messy records—especially if you’re ever audited or want a loan.

Fix: Set up a separate business account, and treat yourself as an owner or salaried manager. Draw funds properly, and keep things clean.

How Antravia Helps Small Hotels

At Antravia, we work with independent hotels that need practical, no-nonsense support with their finances. We help you get on top of cash flow, fix pricing blind spots, reduce FX losses, and build systems that actually work for your size and setup.

You don’t need to be a spreadsheet wizard. You just need clarity—and a partner who understands the hotel business.

If you want to get a better handle on your hotel’s finances, let’s talk. Antravia can help.