Hotel owners and investors who focus solely on top-line metrics like RevPAR are overlooking the hidden driver of profitability: a data-powered, performance-driven culture where employees are empowered with real-time insights that boost their performance and the hotel’s financial results. In this interview, Actabl CEO Steven Moore explored how focusing on this can unlock profitability and long-term success.

"The best-performing hotels create a culture where employees are engaged, accountable, and motivated to maximize results," said Moore. "Studies show that engaged employees lead to higher guest satisfaction, which drives repeat business and direct bookings."

Far from being a feel-good cliché on a careers page, culture has never been a more critical or more concrete factor in hotel investment success.

The profitability equation: Why culture and performance go hand-in-hand

This insight comes at a critical moment for the industry as hoteliers navigate the intersection of rising guest expectations on one side and accelerating investor demands on the other. This dual pressure requires a strategic shift from reactive cost-cutting to proactive performance optimization.

“Guests are spending on more services, seeing higher prices, and showing up at hotels with the expectation their experience will be what they see in a marketing reel on social media,” said Moore. “That is a recipe for extremely high expectations.”

Much the same could be said for investors. CBRE’s “2025 U.S. Hotel Investor Intentions Survey” reported that 94% of respondents expect to maintain or increase their hotel investments in 2025, up from 85% last year. Expanding distressed opportunities topped their list of reasons to invest in hotels, but “more optimistic total return prospects” were a close second.

"Higher risk-free rates over the past couple of years are pushing up the needed return for investors to take on additional risk, like investing in hotels,” said Moore. ”Increasing capital flowing into the industry is a great thing, but it makes it that much more competitive.”

In other words, the bar is now higher for every employee — and so is the payoff for hoteliers that who can keep them engaged. According to research cited by Ecole Hôtelière de Lausanne (EHL) Business School, a mere 5% increase in employee engagement drives a 3% boost in customer loyalty growth, critical in an industry looking to cut customer acquisition costs by boosting repeat business.

Engagement also delivers a possible solution to one of hospitality's top challenges: staffing. "The industry has one of the highest, if not the highest, turnover rates in the country," noted Moore, adding that there is an opportunity to change that through a performance-driven culture.

"I don't want people dreading coming to work or just counting the minutes until their lunch hour or the end of the day. I want people to be drawing energy from their work and actually feel like they're making a difference in moving things forward and finding some purpose," he added.

The role of data: Not just for reports, but for performance gain

Hoteliers already have significant operational data at their disposal, but many fail to capitalize on its potential to drive real-time performance improvements. Moore noted that relying solely on retrospective insights fails to leverage the wealth of information available to inform and enhance day-to-day operational decisions.

"On a tactical level, I don't think there's some silver bullet where a hotel is going to say, 'If I could just discover this, then I've cracked the code for the next decade,'" said Moore. "The hotels that are going to win will say, 'I know the formula is changing day to day, month to month, and year to year. And so I need something that can help me iterate quickly to adapt to those changes.'"

Speed matters. Having immediate feedback on what's working — or not working — accelerates the ability to make proactive decisions so money isn't left on the table. Rather than waiting for a monthly or quarterly review or working from three-month-old data, real-time statistics enable employees to feel and see the impact of their work as they're accomplishing it.

"If you can increase the speed of data to insights to action, then you feel more engaged to do something about it," Moore explained. "By moving quickly, I can do something, and I can see what the outcome is. Then I can change based on that outcome and get better and better."

Combining these tools for engagement with timely benchmarking against the competitive set provides a 360-degree framework for managing labor costs and responding to changes in guest needs and occupancy trends — protecting margins while capturing revenue opportunities.

Driving healthy competition: How performance tracking increases profitability

A performance-driven culture thrives on visibility and recognition. When operational achievements become transparent, employees gain real-time feedback on their contributions to the hotel's success.

"Hospitality isn't about doing just one thing well; it's about doing a thousand tiny things well," said Moore. "Much of this work happens behind the scenes — often unnoticed — but all of these things combined make a big impact on the guest experience."

That's where data comes in as a motivational tool. Metrics give employees a clear roadmap of both their individual responsibilities and their impact on the property overall.

Progressive hotel operators are implementing systems that transform routine tasks into dynamic, goal-driven activities such as:

● Housekeeping teams improving room turnaround times
● Front desk staff increasing guest satisfaction metrics
● Engineering teams reducing maintenance response times and preventative maintenance compliance.

"Executives at the property level and above can see who's making a difference and putting that extra effort in at a hotel and email or call that person to say, 'I see this and it makes a big difference,'" said Moore. "When you can tie it to metrics, it's clear that it's more than just a scheduled email, and that makes it much more motivational."

Those same statistics form a foundation for a friendly competition to raise the bar. "Another happy byproduct of all of this data in driving motivation, insights, and action is that it gives people something to aim for," added Moore. "We've probably all had that experience of thinking we're good at something and then seeing someone up close who is expert at it. It completely changes your perception of what good looks like."

This creates opportunities for coaching to help employees excel and identify and correct performance issues —improving retention and minimizing costs associated with the industry's notoriously high turnover rates.

Actionable takeaways: How owners and investors can ensure a performance-driven culture

For hotel owners and asset managers seeking to maximize returns, implementing a performance-driven culture requires strategic investment and ongoing commitment. Peak performance comes from hotels that keep every team member engaged, motivated, and accountable, from front-line workers to the general manager.

Property-wide goals can only be achieved through property-wide alignment, according to Moore. Finance, labor, and operations teams need to collaborate — and they need to invest in real-time reporting tools that empower managers to make profit-maximizing decisions proactively rather than retroactively.

Having metrics gives employees a clear roadmap of both their individual responsibilities and their impact on the property overall.

Moore emphasized the importance of these steps:

1. Invest in real-time reporting tools that provide actionable insights rather than just data collection.

2. Hold GMs and department heads accountable for actively using data, not just reviewing reports. Department heads and general managers need to act on that data to capitalize on their teams’ capabilities.

3. Recognize and reward top performers to increase engagement and reduce costly turnover. "Hospitality attracts a very personable, outgoing, empathetic type of individual," says Moore. "I don't want to see their spirits get crushed. I want to see them empowered and excited versus becoming cynical."

4. Ensure cross-departmental alignment so that all teams work toward shared profitability goals. Breaking down silos creates efficiency and improves overall financial performance.

Hotel profitability starts with culture

Making the most of the talent on-property is one of the few profit-optimizing tactics that work across locations, sectors, and business cycles. Available to hoteliers 24/7, it is a powerful tool for creating impactful returns for investors, improved experiences for guests, and a more positive work environment for the team.

As market pressures continue to intensify, hotel owners and investors who prioritize a performance-driven culture will see stronger financial outcomes and more resilient asset performance through market cycles.

The winning formula becomes clear, said Moore: Technology + transparency + accountability = results.

Moore summarized this approach, saying, "All the fulfillment, purpose, and meaning we want hospitality professionals to experience — and all the returns and investor satisfaction we seek — depend on precise, consistent execution. Success in the hotel business ultimately depends on making the right decisions, at the right time, with the right people."

In the end, a hotel's culture may prove to be its most valuable asset — and the most reliable driver of investment returns.

By Mary Scoviak