Driving GOP: Why offense still wins games

GLOBAL REPORT – What comes first: cutting costs or driving revenue? That’s the hospitality version of the old chicken-and-egg question. And like the original, the answer depends on whether you’re showing up for breakfast or lunch. In this case, it depends on whether you’re a long-term owner or a private equity player looking to maximize value before the clock runs out.

Expenses are up. Expectations are up. Pressure too. But in my experience, the hotels that succeed in this environment aren’t the ones who play defense; they’re the ones who show up ready to play.

Offense with strategy

I’ve always said, ‘Hope is not a strategy. But it is a good weapon.’ The real tools for owners are data, clarity, and alignment among brand, owner and operator. Because when labor costs rise, insurance spikes, and property taxes eat into margins, cutting alone won’t save you.

To drive gross operating profit today, you need a top-down revenue mindset. Sales teams must lead with selling premium rooms and experiences that create demand – especially during compressed booking windows.

When done well, these experiences deliver what I call the trifecta of value: magical value, meaningful value, and surplus value. The guest is surprised, served, and delighted beyond expectation — and that’s what brings them back.

For example, let’s look at the power of customization to create demand. A guest always ordering still water? That’s personalization. Asking what else they’d like and then building it with them? That’s customization. The more customized the experience, the harder it is to replicate. That’s how you create true demand and lifelong loyalty. That’s where your RevPAR lifts and your base product follows.

Let sales, marketing do their job

Too often, I see owners push for performance while pulling the rug out from under their sales and marketing teams. They cut budgets, limit resources, then wonder why GOP is flat. You can’t squeeze your way to greatness.

Empower your sales and marketing team to really build demand. Back them with the right strategy. Let them sell what makes your property special. Measure what matters — not just heads in beds or hours worked.

One hotel I worked with had fallen into a pattern of constant cuts, weakening the team, the brand, and morale. I was brought in to rebuild. We shifted focus from low-performing group business to higher-yield segments, matched sales talent to client types, and made small changes with big results.

One move - adjusting a top seller’s hours so she could close overseas deals early in the morning - added six figures and new revenue. These internal leadership opportunities are easy to miss. But they matter.

Who owns what?

Ownership models shape everything.

Private equity wants results fast. That’s not a criticism. That’s the play. Whether you’re in it for the quarter or the quarter-century one truth holds: money never sleeps.

The goal is to boost RevPAR, protect margin, and exit strong, which often means prioritizing efficiency over experience. The key is to work with it. Build offerings that justify pricing without unsustainable costs.

One powerful strategy is giving existing team members dual roles that reflect guest needs. For instance, a multilingual concierge might assist in the dining room during peak hours to improve service without increasing headcount. Similarly, low-cost touches, like letting children sign themselves in at a custom-height check-in desk, create lasting emotional value. These small acts can justify premium pricing far more effectively than a budget increase ever could.

Long-term holders — sovereign wealth funds, legacy families — think differently. They know experience is equity. When the guest feels seen and delighted, the brand strengthens, rates hold, and income protects itself.

I call these “once-in-a-lifetime owners.” They play the long game. And it shows.

One example: the owner who underwrites a renovation rather than walk away when a property shows its age. Renovations take time, but they almost always increase RevPAR, uusually goes up.

Master planning the unplannable

Here’s what the proformas don’t tell you: the ground is shifting.

AI is now reshaping how guests book and choose. Dynamic pricing tools are changing your week by the hour. Climate volatility is already redefining markets. You can spend years raising capital, forecasting occupancy... and then a wildfire, drought, or permitting crisis turns your resort into an emergency shelter.

Maui, 2023. Wildfires decimated Lahaina and displaced thousands. FEMA and state agencies stepped in. One major branded resort ended up housing 440 displaced people, including 150 of its own employees. Business plans vanished overnight.

The first mistake in a crisis is not realizing you’re in one. This is the game now. The smartest owners plan for resilience. They know how to pivot. They build teams that can shift with them.

Radar on, antenna up. That includes developing pre-agreed internal crisis protocols between ownership, leadership, and even city officials. It also means having redundant communication channels across the team before disaster hits — think multiple cell numbers, platform backups, and clear roles in the event of disruption. A strong crisis plan protects not only operations, but also reputation, revenue, and long-term asset value.

Do you have your crisis manual in place?

One beautiful thing to remember is that self-expansion moments can also happen in emergencies. Emergency is defined as a lack of choice and these are the make-or-break pivots during pressure - the decisions that reveal what a team is truly capable of when the usual options are gone.

Defining success today

Great hotels do three things well:

• They sell from the top, with products that optimize RevPAR growth index and loyalty
• They build teams that lead with care and consistency
• They stay ready to adapt when the play breaks down

It’s no different from baseball. You don’t win by standing still. You win by swinging for gaps, stealing bases, and trusting your team to move fast under pressure. Great teams aren’t just matching uniforms. They have chemistry, trust, and shared purpose, and they create the same desire and momentum together. Momentum builds confidence, breaks silos, and drives performance.

GOP follows leadership

I’ve worked with good owners, great ones, and once-in-a-lifetime partners. What they all shared was the willingness to invest in strategy before asking for results.

They didn’t say, “What can we cut?”

They asked, “What are we building here, and how do we sell it?”

They gathered facts. They looked for insight. They acted with intention.

This game is won with offense. But it’s only winnable when the owner, the brand, the operator, the culture and the sales and marketing team are on offense together.

Our destiny isn’t fate. It’s a choice. Work smarter. Work harder. Because every day in this industry is game day.

That’s the shift. That’s the mindset. That’s leadership.

And in this economy, it’s the way forward.

Contributed by Edward Mady, Edward Mady LLC, Los Angeles. Mady’s hotelier career spans almost four decades across iconic luxury properties, including The Beverly Hills Hotel and Hotel Bel-Air. His upcoming book, Honing the Human Edge, will publish in July 2025.

The views and opinions expressed in this content do not necessarily reflect the opinions of Hotel Investment Today by Northstar or Northstar Travel Group and its affiliated companies.