Baverez Hotels Remain Profitable in 2025, Yet Cash Reserves Decline Amid Raphael Renovation
Baverez Hotels concluded the 2025 fiscal year with a net profit of 2.18 million euros, affirming its profitability. However, investors face a deteriorating liquidity situation: active cash reserves decreased by 9.5 million euros over twelve months, while debt increased by 3 million euros.
Annual Financial Statements of 2025
The annual accounts for the fiscal year 2025, finalized on March 31, 2026, show a positive net result of 2.18 million euros. This outcome is part of a total balance sheet of 76.4 million euros, reflecting significant real estate assets. The total fixed assets after depreciation amount to 46.4 million euros, while equity excluding results also reaches the same figure, 46.4 million euros. This stable asset structure highlights the capital-intensive nature of the hotel industry, where the business largely relies on real estate.
Financial Tensions Increase
The financial situation, however, reveals increasing tension. Active cash reserves decreased by 9.5 million euros, from 37.5 million euros at the end of 2024 to 28.0 million euros on December 31, 2025. Simultaneously, net debt has increased, with ongoing loans rising by 3 million euros to reach 18.5 million euros, up from 15.5 million euros a year earlier. This divergence suggests that the generation of operational cash flows was insufficient to fund investments or maintain previous liquidity levels, forcing the company to rely more on external financing.
Ongoing Major Project: Raphael Hotel Renovation
The group remains engaged in a significant project: the renovation of the Raphael Hotel, which is ongoing and expected to be completed by the end of 2026. This structural investment partly explains the increasing reliance on debt financing and the consumption of cash reserves observed over the past fiscal year. The challenge for shareholders lies in the project's ability to generate a sufficient return on investment to justify this dilution of cash structure and the increased leverage, in a context where the hotel market remains competitive and dependent on tourist demand.
