Impact Factors on Portuguese Hotels’ Liquidity

As a core activity in the tourism sector, hospitality accounts for largest share of sector’s revenue. The last few years, prior to COVID-19 pandemic, have been years strong growth both number hotel companies and available rooms. industry has also betting on diversification as well quality its services. This impact various agents thus it makes essential measure analyze sustainability these hotels. One indicators that proficiently short-term is company’s liquidity level, demonstrates ability meet financial obligations. type indicator useful since provides relevant information not only managers, but banks lenders, investors. Volatility characteristic hotels which are associated with geographic location, implying changes main operating revenue indicators. In this sense, research aimed investigate if reimburse responsibilities differs according food beverage service existence, official stars classification, size. Portuguese without restaurants were analyzed 2013–2017 period rooms star rating included database. All was obtained SABI (a database detailed Spanish companies) RNET (the Register Tourist Enterprises). Findings show behavior some concerning obligations does differ much considering location However, Algarve North region highest values. fact, proved greatest influence. size hotels, existence negatively influences liquidity. very important study can provide management allows more informed decision-making definition corrective measures necessary.