Chapter 15Cash, Working Capital and Seasonality

Manage receivables, payables, inventory, commitments and seasonal cash lows so the hotel can meet obligations before they become urgent.

By Manish Gupta, CA · eHMS Press · Updated Aug 28, 2026

Questions this chapter helps answer

Will the hotel have enough cash when payroll, suppliers, tax, debt, and other obligations fall due?
How do receivables, payables, deposits, inventory, commitments, and seasonality affect short-term hotel liquidity?
How can a minimum cash floor and a short-term cash forecast help the owner act before the low point becomes urgent?

Key concepts

working capital
cash forecast
seasonality
receivables
payables
deposits
cash floor
liquidity
13-week cash flow

Manage receivables, payables, inventory, commitments and seasonal cash lows so the hotel can meet obligations before they become urgent.

Chapter-end learning

Apply, check, and remember

Apply it to your situation

Connect the chapter to a real hotel decision

As you answer, think about where this issue appears in your own property, team, report, meeting, or control process. Work through one item at a time, check the result, and then continue.

Knowledge check

Question 1 of 3

0 checked

Which statement best reflects the central rule of Chapter 15?

What this tests: Recognise the chapter's central management principle.

Manage liquidity before it becomes urgent by forecasting short-term cash, working-capital movements, seasonal lows and committed payments.Judge the issue from one headline number and act immediately.Add as much reporting detail as possible before deciding what matters.Treat the accounting output as sufficient without testing the operating context.

Show hint

Use the owner-first rule in this chapter.

1 / 3

Memory practice

Flashcard 1 of 4

Working capital

Reveal the answer, decide how confident you are, and then move to the next card.

Continue the discussion

Share how this applies in practice

Seasonal cash pressure should be seen before bills fall due.

The hotel is profitable annually but enters a three-month low season with large tax, debt and payroll commitments. What should the owner review now?

Build the short-term cash forecast, test collection dates, supplier timing, deposits, capex and financing, set a cash floor and define triggers for action.

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