Hospitality Taught me Humility

Hospitality Taught me Humility

This story is about how hospitality taught me humility.

Over the years, I have been part of, or supported owners and managers of, hotels, resorts, restaurants, tourism businesses, and hospitality platforms as they succeeded, struggled, recovered, and sometimes failed.

One observation has remained remarkably consistent.

Hospitality assets rarely fail for lack of capital, systems, brands, concepts, technology, or effort.
More often, they under-perform because of a lack of alignment between managers and owners about who is responsible and accountable; in other words, or more likely, the fancy language you may recognise from a poster put on the wall of the cantina: “Governance”.

Governance.
This word sounds distant when things are going well, or you may not know the full picture.
But it becomes the subject of each and every discussion when expectations are not aligned.

Much of what I know today was not learned in classrooms.
It came from years of operational exposure, difficult environments, blood, sweat, tears, mistakes, recovery, responsibility, and accountability.

Responsibility and accountability are not social media buzzwords.
They require standing up for what you believe in and taking the blame when you are wrong.
Managing operational crises, safeguarding debt service, payroll, supplier commitments, ownership transitions, business recovery, and complex stakeholder environments taught me that performance problems rarely exist in isolation.

Revenue, operations, commercial strategy, cost structures, governance, leadership, and capital allocation are interconnected.
Believe me, I have seen my share, and I have learned the hard way.
As a professional.
And as a family man.
Standing up for what is right, also when you realise the failings of the other party as well as your own, is not an easy call to make.
It requires maturity.
And over time, maturity shapes character.
Which proves my point.

Failure in one phase of your professional life, or your business, can lead to maturity in the next.
Failure becomes valuable when approached with humility, accountability, and a willingness to learn from operational reality.
The real danger begins when employees or organisations become emotionally invested in defending decisions that no longer serve the business.
That is when facts become inconvenient.
That is when reporting becomes selective.
That is when accountability becomes blurred.
That is when capital starts funding hope rather than strategy.

Over time, I have developed three core management principles that continue to shape my thinking about how to responsibly run a business.

1. Commercial performance does not operate in isolation.

• Revenue is not the starting point, and must not be limited to revenue management, but start by asking what is the optimal use of the property (“Highest-and-Best-Use”, or in short: HBU).
• Revenue is the consequence of a much larger system involving governance, capital allocation, product definition, market positioning, sales execution, organisational capability, and ultimately the guest experience.
• Equally, the outcome of commercial performance should not be measured solely through operating indicators such as Average Daily Rate (ADR), Occupancy, RevPAR, or Gross Operating Profit (GOP).
  These metrics are important, but they are not the final objective.

The real question is whether the business is creating value:
value for guests, value for employees, value for owners, and value that can be clearly explained and demonstrated to shareholders, lenders, and other stakeholders.
Sustainable commercial performance is therefore not merely about generating revenue.
It is about strengthening the long-term value of the business, the asset, and ultimately the land upon which it stands.

2. Portfolio growth requires differentiated strategies.

Governance frameworks can often be standardised.
Economic reality cannot.

• What works for a luxury resort will not necessarily work for a mid-market city hotel.
• What works for an owner-operated asset may fail completely in a multi-property platform.

3. Organisational capability remains the critical link between strategy and execution.

• Many performance challenges are not caused by a lack of capital, systems, brands, concepts, technology, or intent.
• They are caused by inconsistent application, unclear accountability, and weak execution at both management and ownership level.

Strategy is rarely the problem. Execution usually is.
The compass I use to navigate these situations is governance.
Not governance as bureaucracy.
Rather, governance is the operating system of decision-making.
It creates clarity around decision rights, accountability, expectations, information flows, and risk.
Because organisations generally perform well when people understand who decides, who executes, who is accountable, and how decisions translate into action.

After more than twenty-five years in hospitality, I remain convinced that sustainable EBITDA growth is rarely the result of individual initiatives.
It is usually the result of alignment.
Alignment between ownership objectives, organisational capability, commercial strategy, operational execution, and capital allocation.
When those elements align, performance follows.
When they do not, no amount of effort can compensate indefinitely.

Thank you for reading my story.

This story is part of a series—”The Banana Republic Hotel and What It Taught Me About Myself”—in which I share lessons learned throughout my professional and personal journey and how those experiences have shaped my thinking and led me to develop my own principles.

If you enjoyed reading the story and have the appetite to read another one, you are invited to visit G&A’s website, in particular its INSIGHTS page, where you can find all stories.
Alternatively, click here to be taken to the final story.

I hope it has provided some food for thought, encouraged curiosity, and inspired you to keep learning.

Curiosity, humility, and continuous learning remain among the most valuable tools we possess.

Terminology for non-hoteliers

• SOP: Standard Operating Procedure – a documented process describing how a task should be performed to ensure consistency, quality, and compliance.
• KPIs: Key Performance Indicators – measurable indicators used to monitor performance and progress against objectives.
• ADR: Average Daily Rate – the average room rate paid by guests.
• RevPAR: Revenue per Available Room – a measure combining occupancy and room rate to assess hotel revenue performance.
• Occupancy: The percentage of available rooms that are occupied.
• DOF: Double Occupancy Factor – the average number of guests staying in each occupied room. A DOF of 1.0 means every occupied room has one guest; 2.0 means every occupied room has two guests.
• AGC: Average Guest Check – the average amount spent by each guest in a restaurant, bar, or other food and beverage outlet.
• CRS: Central Reservation System – the central booking system that manages a hotel’s room inventory, rates, and reservations across all sales channels.
• PMS: Property Management System – the software used to manage reservations, guest accounts, and hotel operations.
• OTA: Online Travel Agency – websites such as Booking.com or Expedia that sell hotel rooms on behalf of hotels.
• GDS: Global Distribution System – a worldwide booking network used by travel agents and corporate travel departments to reserve hotel rooms, flights, and other travel services.
• CRM: Customer Relationship Management – systems and processes used to manage guest relationships and marketing.
• F&B: Food & Beverage Department – all restaurant, bar, banquet, room service, and catering operations within a hotel.
• Half-Board: A hotel meal plan that includes breakfast and one additional meal each day, usually dinner. Drinks other than those specifically included are generally charged separately.
• MICE: Meetings, Incentives, Conferences and Events – the hotel business related to corporate meetings, conferences, exhibitions, and incentive travel.
• ERP: Enterprise Resource Planning – an integrated software system that connects key business functions such as finance, procurement, inventory, human resources, sales, and reporting into a single platform.
• USALI: Uniform System of Accounts for the Lodging Industry – the internationally recognised accounting standard used by hotels to measure and compare financial performance.
• GOP: Gross Operating Profit – the operating profit generated by the hotel before management fees, rent, financing costs, depreciation, taxes, and other non-operating expenses.
• EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortisation – a widely used measure of an organisation’s operating profitability.
• COS: Cost of Sales – the direct cost of producing the goods sold, such as food, beverages, or merchandise, expressed as an amount or percentage of revenue.
• FTE: Full-Time Equivalent – a standard measure of staffing that converts part-time and seasonal employees into the equivalent number of full-time employees.

About the Author

Raoul Gransier is a Senior International Adviser and owner-focused hotelier with more than 30 years of operational and advisory experience in hospitality, tourism, governance, and performance improvement.

Website

https://gransier.com