Balance Sheets deserve more attention and are an often-overlooked financial statement. While it is the Operator’s responsibility to ensure accuracy, the simple fact that it isn’t tied to management fees means there is often little effort going into keeping it accurate. Meanwhile, the P&L statement predominates negotiations and is keenly scrutinized by all partners involved in the Hotel. However, it is of vital importance to question the P&L statement’s accuracy, and this can largely depend on the validity of the Balance Sheet. Unfortunately, the importance of a strong Balance Sheet, in particular when it comes to working capital, is not something that is reviewed as regularly or as detailed as a P&L.