Think like an Owner - Act like an Operator

GAS
Nov 30
11 min read

Updated: Dec 3

The Challenge

Today’s General Managers face the dual challenge of meeting owners’ expectations while running day-to-day operations.

This article is for GMs who want to strengthen their relationship with owners and asset managers and achieve sustainable success. Adopting an asset management mindset means thinking like an owner while acting as an operator — aligning priorities so both sides achieve their goals. By bridging these perspectives, hotels can deliver both guest satisfaction and long-term financial performance.

The Importance of Aligning Owners and Operators

Owners and operators naturally see a hotel through different lenses. Owners are focused on return on investment – they care about metrics like net operating income (NOI), EBITDA, asset value growth, and long-term stability of the asset. Operators focus on running the hotel: delivering brand standards, guest satisfaction, and strong GOP. Both perspectives are valid, but if they fall out of sync, it leads to misunderstandings and missed opportunities. Alignment isn’t just ideal – it’s essential.

To bridge the gap, it’s critical for GMs to understand what matters most to hotel owners. Generally, owners prioritise ROI, asset value growth, CapEx discipline, risk management, and reputation/guest satisfaction. In short: money, value, prudent investment, stability, and quality preservation.

What Owners Expect from GMs and Executive Teams

Owners expect operators to deliver transparency, alignment with owner KPIs, strategic thinking beyond day-to-day operations, accountability, and preservation of asset quality. Deliver the brand promise, but always with ROI in mind. Despite complementary goals, misalignments occur. GMs often view certain asset managers as cost cutters, second-guessers, or burdens. Owners, meanwhile, complain of a lack of transparency, operational tunnel vision, and unachievable results. This friction highlights the need for professional independent mediators.

Collaborative asset managers act as mediators and translators between owners and operators. They align goals, improve communication, and drive profitability by sharing best practices, benchmarking, and ROI-driven initiatives. They are allies of both GMs and owners. Importantly, their role is not only to highlight challenges but also to continually look ahead. While they celebrate strong performance, asset managers are trained to focus on the next opportunity for value creation. This mindset is not about being “never satisfied,” but about ensuring hotels stay one step ahead of competitors who are also striving to improve.

Practical Steps for GMs to Align with Owner Goals

To build stronger partnerships with owners and asset managers, General Managers must move beyond simply operating a hotel and begin thinking like asset stewards. The shift is about acting as if you own the property yourself: anticipating owner concerns, demonstrating ROI, and framing decisions in financial language. Below are practical ways GMs can adopt this mindset in day-to-day leadership:

1. Focus on Flow-Through

Occupancy and RevPAR make great headlines, but owners want to know how much of that growth actually lands in GOP or EBITDA. Track flow-through relentlessly: if a campaign adds €100,000 in revenue but only €30,000 drops to profit, highlight that difference and address it. Build this mindset across your team.

GMs should give the Executive Team KPIs tied to flow-through, GOP margin, and forecast accuracy, and hold the Operations Team (Director of Rooms and Director of F&B, together with the Director of Human Resources) accountable for productivity metrics such as labor cost per occupied room, or per customer at the F&B, overtime levels, and schedule efficiency. Their role is not just to measure results but to ensure department heads are accountable. Recognise their success, as it strengthens a culture of profit ownership across the hotel.

Make these results a standing item in your operational meetings so every department head understands how their decisions impact profitability. Owners respect a GM who prioritises profitability over vanity metrics.

2. Delivers Insight, Not Paperwork

Owners don’t want 50-page brand/PR marketing reports; they want clarity and actionable insight. Before sending the standard monthly business report, be proactive by sending a concise one-page dashboard immediately at the end of the month. Include the essentials (even if you include estimates): occupancy, ADR, RevPAR index, GOP, EBITDA, and even guest satisfaction review, or CapEx ROI updates.

For the full monthly report, add relevant commentary — not just a description of the tables — that explains why results happened and, more importantly, what comes next. During the monthly business review with your asset managers, historical data has its place, but by the time it’s reviewed, it’s often too late to act. What truly matters in monthly business reviews is the forward view. Spend time discussing business on the books, presenting an accurate forecast P&L and cash flow, and using HotStats benchmarks to highlight areas needing improvement. In other words, be more strategic. Also, GM should measure the accuracy of the forecasts over time and hold the Director of Finance and the Director of Revenue accountable for improving precision. This combination of clarity, context, and accountability demonstrates to owners that you’re not just reporting results — you’re actively steering the business with an owner’s mindset.

Transparency is key: share both wins (major group bookings, strong guest satisfaction, completed maintenance) and risks, always with solutions attached. Maintain a tracking list of items discussed during monthly reviews, noting responsibilities and timelines. This shows you are not just reporting numbers but managing proactively, anticipating concerns, and delivering a clear roadmap to value creation.

Requests for non-standard reports from ownership or asset managers should not be seen as extra administrative burdens but as valuable insights into how owners evaluate the property. These analyses reflect their priorities and decision-making lens. When GMs incorporate these perspectives into their own weekly and monthly reviews, they gain tools that sharpen performance management and keep the hotel’s reporting aligned with owner expectations.

3. Anticipate Trouble and Act Early

If you see the budget won’t be achieved (at any time of the year), don’t necessarily scramble with a Profit Protection Plan that slashes guest-facing expenses. That may have been the traditional operational reflex in the past, but today it’s outdated and counterproductive — it erodes service quality, damages guest loyalty, and demotivates your team. Instead, take a proactive approach: commission an independent asset management one-off review, such as Global Asset Solutions’ 360º Performance Optimisation Review, to identify efficiency gains and new revenue opportunities without compromising the guest experience.

This review provides a structured, impartial spot-check of your hotel, revealing blind spots that internal reviews often overlook. It examines every key area — from revenue management, rooms division, and food & beverage to guest services, payroll, utilities, and CapEx alignment. The outcome isn’t a generic cost-cutting exercise, but a set of clear, actionable recommendations that drive efficiency, unlock incremental revenues, and strengthen flow-through. Importantly, this outside perspective is about identifying opportunities, not assigning blame. In fact, it often energises and motivates your team to aim higher. As GM, you decide which recommendations to implement and then mobilise your team — ensuring improvements are achieved without compromising the guest experience.

The 360º Review delivers:

Actionable solutions (specific savings, revenue opportunities, and best practices)
Forward-looking insight (forecast validation, business-on-the-books analysis, and P&L/cash flow checks)
Accountability tools (tracking variances, aligning budgets with realistic targets, and engaging department heads).

Owners want solutions, not surprises. By using a 360º review as part of your mid-year strategy, you show that you are not only anticipating shortfalls but also providing a professional, owner-minded plan for recovery and long-term value creation.

4. Labor: Managing the Biggest Cost Driver with Precision

Labor is the single largest cost in any hotel, and owners expect it to be managed with the same rigor as revenue. Simply comparing payroll to last year is not enough, and assuming costs move in direct proportion to rooms sold or F&B covers is a flawed approach. Many positions are fixed regardless of business volume, which is why labor planning must be both disciplined and role-specific.

Demonstrating control starts with productivity metrics such as labor hours per occupied room or labour hours per customer in F&B. You can also calculate it as labour cost per room or cost per cover in F&B. These figures give owners confidence that staffing is aligned with business levels rather than habits or convenience. Variance analysis helps distinguish between genuine cost pressures, such as contractual wage increases, and inefficiencies that should be addressed. It is crucial to ensure that, where possible, productivity increases YoY and the additional costs of the cost of living increase are absorbed by the ADR / Average check increase.

Equally important is the forward view. Use accurate forecasts to model staffing against business on the books and monitor how well those forecasts hold up. When variances occur — whether from unexpected overtime, sick leave, or holiday carryovers — explain them clearly and outline corrective measures.

By managing labor with structured metrics and forward-looking planning, GMs show they treat workforce costs with the same care as capital investment. This precision protects margins, sustains team motivation, and builds owner trust.

5. From Proposal to Proof: Building Trust Through CapEx Management

When requesting investments — whether for new equipment or a major refurbishment — it is essential to prepare not only a clear ROI case or risk-mitigation argument but also to manage the process with discipline. Of course, owners expect proposals to be supported by at least three quotes, with the rationale behind each option clearly explained, but before submission, every project should be carefully reviewed within the executive team to ensure that both the operational and financial justification stand up to scrutiny.

At the same time, GMs should demonstrate that CapEx reserves are being managed responsibly. While it is sensible to maintain prudent FF&E balances, owners see excess funds sitting idle as unproductive capital that could be generating stronger returns elsewhere. Show that reserves are right-sized to protect the asset without tying up unnecessary cash.

Once a project is approved, regular progress updates should be shared with ownership, including any delays or cost overruns that arise. On completion, demonstrate the return on investment where applicable. This not only validates the original proposal but also builds credibility and trust, making it easier to gain approval for future projects. Twice a year, provide a reconciliation of the reserve bank account against CapEx expenditure to date, ensuring complete transparency and robust financial oversight.

The principle is simple: explain the project accurately, communicate consistently, and close the loop with proof of results and proper accounting. This disciplined approach builds owner trust and shows that every investment is managed as carefully as if it were your own capital.

Finally, don’t let repair & maintenance be invisible. Preventive maintenance must be articulated as a strategic investment in value preservation. For example: “A €20,000 preventive upgrade extended the life of our elevators by five years, deferring a €200,000 replacement.” Framed in this way, owners understand that well planned maintenance is not an expense but a form of capital protection and risk mitigation. By consistently presenting operational decisions in financial terms, General Managers demonstrate discipline, foresight, and stewardship — qualities that build lasting credibility with owners and asset managers.

6. Proactive Communication and Collaborative Partnership

Owners and asset managers value General Managers who anticipate issues and address them before being asked. If a key executive resigns or market share begins to slip, communicate immediately — but always with a corrective plan already in motion. The golden rule is simple: no surprises.

Equally important is how you engage with asset managers. The most effective GMs treat them as strategic allies rather than auditors, inviting their perspective and leveraging their broader experience. A simple question, such as, “What have you seen work at other hotels that we could adapt here?” demonstrates openness and positions you as a partner committed to improvement.

This combination of transparency, solutions-oriented communication, and genuine collaboration builds trust and transforms the owner–GM–asset manager relationship into a true partnership.

7. Accurate Forecasting: The Cornerstone of Owner Confidence

Accurate forecasting is one of the most powerful tools a GM can provide to owners. It gives a clear picture of the hotel’s future financial position and operational needs, allowing owners to plan cash flow with confidence — whether for low seasons, maintenance, or new investments. Strong forecasts also guide staffing, purchasing, marketing, and pricing strategies, ensuring the business runs proactively rather than reactively.

Forecast precision should be monitored over time, with variances explained and corrective actions implemented. GMs should hold the Director of Finance and the Director of Revenue accountable for improving accuracy and make forecast reviews a standing part of monthly business reviews. For owners, reliable forecasts are more than numbers; they are a sign of professional discipline and stewardship. When forecasts are consistent and credible, they build trust and demonstrate that the GM is managing the hotel with the same foresight and responsibility as an owner.

In addition to short-term forecasting, owners often request operators to prepare a 10-year business plan to provide the long-term financial outlook required for strategic and investment decisions. A reliable plan projects revenues, expenses, and profit growth over time, giving owners a clear view of the hotel’s future performance. This is not just an internal management tool — it is critical when seeking financing or refinancing, as lenders and investors rely on such forecasts to assess cash flow stability and repayment capacity. For owners considering a future sale, a 10-year plan also underpins a Discounted Cash Flow (DCF) valuation, which determines the property’s market value based on its earnings potential. In short, pairing accurate short-term forecasts with a robust long-term plan equips owners with the foresight to make informed decisions, secure capital, and maximise asset value.

8. Clean Balance Sheets: A Signal of Discipline and Stability

Maintaining a transparent balance sheet with controlled liabilities is highly advantageous for owners, as it demonstrates financial discipline and long term stability. Liabilities such as outstanding supplier payments, lease obligations, or inflated payroll costs can quickly strain cash flow if not tightly managed. When operators keep these under control, owners are in a stronger position to negotiate favourable terms with banks, since lenders view the property as low-risk and financially reliable. A clean balance sheet also enhances investor confidence, making the asset more attractive during due diligence and positioning it for reinvestment opportunities such as renovations or expansion.

In essence, strong financial housekeeping by the operator not only safeguards short-term liquidity but also preserves the hotel’s long-term stability, market value, and reputation.

9. Identify Areas for Improvement Before the Owner Does

It is a GM’s responsibility to identify and address unprofitable areas of the hotel swiftly, demonstrating proactive leadership and genuine care for the owner’s investment. By analysing performance metrics, cost structures, and revenue streams, you can pinpoint underperforming departments and take corrective action — whether by optimising staffing, renegotiating supplier contracts, or refining pricing strategies. This not only improves overall profitability but also sends a clear message that you are safeguarding the owner’s financial interests. Crucially, it is always better for the GM to identify and resolve inefficiencies before the owner does, as this reflects professionalism, accountability, and operational control.

Anticipating challenges and presenting solutions builds confidence and trust, strengthening the GM’s credibility and ensuring the hotel performs at its full potential.

10. Why Reputation Matters: A Driver of Demand and Asset Value

A strong reputation is one of the most valuable assets a hotel can possess, as it directly influences demand, pricing power, and long-term profitability.

Reputation builds trust and loyalty among guests, driving repeat business and positive word-of-mouth — both far more cost-effective than constant new customer acquisition. Beyond guests, a well-regarded hotel strengthens its partnerships with travel agencies, event planners, and suppliers, who are more inclined to collaborate with and promote a trusted property. A respected local reputation also elevates the overall value of the asset, making it more attractive to investors and buyers.

In short, safeguarding and enhancing the hotel’s reputation positions the property as a market leader within the city’s hospitality landscape, ensuring resilience and steady performance even in competitive or challenging market conditions.

Conclusion

Enduring hotel performance depends on more than operational excellence — it requires alignment between owners, asset managers, and operators. General Managers who adopt an asset management mindset elevate themselves from day-to-day operators to strategic leaders, demonstrating stewardship not only of the business but of the asset itself.

The benefits are twofold: owners gain confidence that their capital is safeguarded and maximised, while GMs strengthen their own credibility, influence, and long-term career profile. The most effective leaders are those who consistently think like owners while acting as operators — bridging both perspectives to create stronger assets, more resilient teams, and hotels positioned for sustainable success.

Ultimately, the best GMs don’t just manage hotels, they steward assets.