What Does Hotel Management Consulting Involve? A 40-Year Hotelier Explains
By Greg Presley, Founder and CEO, Presley Hospitality
The short answer: Hotel management consulting is outside expert help that finds out why a hotel is underperforming and builds a plan to fix it. A hotel consultant reviews revenue, operations, costs, guest experience, capital needs and leadership, then hands owners a prioritized action plan, usually broken into 30, 60 and 90 days, for a single hotel or an entire portfolio.
Key takeaways
Hotel management consulting covers seven areas: performance diagnosis, revenue and sales, operations, cost and capital planning, leadership and culture, openings and turnarounds, and technology.
Consultants measure a hotel against its competitive set using occupancy, ADR, RevPAR, RevPAR Index, GOP and NOI.
A consultant advises. A third-party management company runs the hotel day to day. Some firms, including Presley Hospitality, do both.
Engagements are usually project-based, an ongoing advisory retainer, or interim leadership.
Owners typically bring in a consultant when performance slips against the comp set, before a sale or acquisition, during a brand change or PIP, or when the relationship with their current operator breaks down.
I have spent over 40 years in hotels. I started as a general manager. I have run regions, worked the development side, sat in asset management and investor relations, and turned around properties that banks had already written off.
Here is what I have learned. Most hotel owners do not need someone to tell them something is wrong. They already feel it. What they need is someone who can walk the building, read the numbers, and tell them exactly what is broken, what it is costing them, and what to fix first.
That is hotel management consulting. Below is what it actually involves, from the first audit to the last line of the action plan.
What Is Hotel Management Consulting?
Hotel management consulting is the practice of advising hotel owners, investors, developers and operators on how to improve a property's financial and operational performance. A consultant brings an outside view, benchmarks the hotel against its competitors, and turns what they find into a specific plan of action.
The work happens at two levels:
Property level: one hotel, one set of problems, one plan. This is most independent and franchise-affiliated owners.
Portfolio level: several hotels under one ownership group or management company, where the goal is consistency, shared standards and comparing properties against each other.
Good consulting is not a binder. It is a clear answer to three questions: where is this hotel losing money, why, and what do we fix first.
Hotel Management Consulting vs. Third-Party Hotel Management
These two get confused all the time, and the difference matters when you are deciding who to hire. A consultant diagnoses and advises. A third-party management company takes over and runs the hotel.
Hotel management consultant | Third-party hotel management company | |
Role | Diagnoses problems and recommends a plan | Operates the hotel day to day on the owner's behalf |
Who runs the hotel | The existing team, with guidance | The management company's GM and staff |
Typical length | A defined project or a monthly retainer | A multi-year management agreement |
How it is usually paid | Project fee or retainer | Base fee tied to revenue, often plus an incentive fee tied to profit |
Best fit | Owners who want answers and will execute themselves | Owners who want an operator accountable for results |
At Presley Hospitality we do both. Many owners start with a consulting engagement or our free audit, then decide whether they want us to implement the plan as their management company. Either way, the first step is the same: an honest look at where the hotel stands.
What Do Hotel Management Consultants Actually Do?
Hotel management consultants work across seven areas. Not every engagement touches all seven, but a thorough one looks at each before deciding where to focus.
1. Diagnose Performance Problems
Every engagement starts with a diagnosis. Before anyone recommends anything, a consultant needs to know where the hotel actually stands against its competitive set.
I have been in hotels that looked perfect on paper and were bleeding out. I have been in hotels that looked rough and were quietly thriving. The difference almost never shows up in the financials first. It shows up in the culture, the team and the systems around them.
A proper diagnosis reviews:
Occupancy, ADR and RevPAR against the comp set
The profit and loss statement, department by department
Labor cost, scheduling and productivity
Booking conversion on the website, phone and OTAs
Guest reviews, sorted by department and recurring issue
The physical condition of the building
2. Build the Revenue and Sales Strategy
Revenue problems rarely start with revenue. They start with blind spots in pricing, channel mix and sales execution that compound quietly over time.
Consultants typically deliver:
A rate strategy built on demand, not on what the hotel down the street charges
A distribution plan that balances direct bookings, OTAs and the GDS
A group and corporate sales plan with real accountability
Website and booking funnel fixes
Marketing priorities by guest segment
One thing I push hard on: grow rate, not just occupancy. Filling rooms with discounts looks good for a month and hurts you for a year.
3. Improve Hotel Operations
Operational consulting makes the hotel run better every day. This is where service consistency and guest scores are won or lost.
Standard operating procedures for every department
Service recovery processes the front desk can actually use
Housekeeping, front desk and F&B productivity targets
Quality assurance and training plans
Cross-training and labor scheduling built around forecasted demand
Vendor management and purchasing processes
4. Control Costs and Plan Capital Spending
Waste in a hotel is rarely dramatic. It lives in staffing patterns nobody has questioned, purchasing habits that made sense three years ago, and deferred maintenance that is slowly becoming a capital problem.
Consultants help owners:
Cut controllable expenses like supplies, utilities and contract services
Tighten budgeting, forecasting and purchasing controls
Assess deferred maintenance before it becomes an emergency
Plan for brand Property Improvement Plans (PIPs)
Rank capital projects by return, so renovation dollars go where they lift rate or occupancy
5. Strengthen Leadership and Culture
A plan is only as good as the team carrying it out. Leadership consulting fixes the structure around the people.
Clear roles, responsibilities and reporting lines
A leadership rhythm: weekly GM meetings, the right KPIs, real follow-through
Hiring support and performance management
Training frameworks and service standards the team believes in
I tell owners this all the time. Your team is showing up. The question is whether they have the systems to stand out.
6. Support Openings, Development and Turnarounds
Some of the highest-stakes consulting happens at the start of a hotel's life or at its lowest point.
New openings and development: site selection and feasibility, brand representation, project team coordination, budget oversight and pre-opening staffing plans
Turnarounds: a fast diagnosis and a hard reset for distressed, underperforming or bank-owned hotels
Transitions: handoffs between owners, between management companies, or between brands
Turnarounds are where I built my career, including receivership and bank-owned assets. They require speed, honesty and someone willing to be in the building every day.
7. Integrate Technology and AI
The hotels pulling ahead right now are running on better tools, not just working harder. A consultant reviews the technology stack and recommends what to keep, replace or add.
Property management system (PMS)
Revenue management tools
Guest messaging and reputation management
Reporting and dashboards
AI tools that save labor hours or improve pricing and guest response
This is not technology for its own sake. Better tools free your team to do what no platform can: take care of guests.
What Metrics Do Hotel Consultants Look At?
Hotel consultants judge performance with a short list of numbers, always compared against the hotel's competitive set and its own history.
Metric | What it measures | What a consultant looks for | |
Occupancy | Share of available rooms sold | Whether demand is soft or the hotel is losing share to competitors | |
ADR (average daily rate) | Average rate paid per occupied room | Rate leakage, heavy discounting, weak positioning | |
RevPAR (revenue per available room) | Occupancy multiplied by ADR | The single best read on rooms revenue health | |
RevPAR Index | The hotel's RevPAR against its comp set (100 = fair share) | Whether the hotel is winning or losing its market | |
GOP and GOP margin | Gross operating profit before fixed costs | How well departments convert revenue to profit | |
NOI (net operating income) | Profit after operating and fixed expenses | What the owner actually earns, and what drives asset value | |
Labor cost per occupied room | Payroll efficiency | Overstaffing, poor scheduling, overtime creep | |
Channel mix and acquisition cost | Where bookings come from and what they cost | Overdependence on OTAs, weak direct booking | |
Online review scores | Guest satisfaction across platforms | Recurring complaints that are suppressing bookings |
The goal is not just higher numbers. It is the right numbers. A hotel that leads its market on RevPAR Index through ADR growth, not bought occupancy, is a healthier and more valuable asset.
What Does a Hotel Consultant Deliver?
A hotel consulting engagement should leave the owner with documents the team can act on Monday morning, not a report that sits in a drawer. Typical deliverables include:
A performance audit with findings ranked by financial impact
KPI dashboards and a forecasting model
Department-by-department action plans
A 30/60/90-day implementation plan with owners and deadlines
Budget, staffing and labor recommendations
Revenue and sales strategy
SOPs and training plans
A capital expenditure plan ranked by return, including PIP requirements
Technology recommendations
How Are Hotel Consulting Engagements Structured?
Most hotel consulting engagements follow one of four models, depending on how much help the owner wants and for how long.
Engagement type | What it looks like | Best for |
Project-based | A defined scope with a start and end, such as an audit, a pricing overhaul or a turnaround plan | A specific problem with a clear finish line |
Advisory retainer | Ongoing guidance with monthly reporting and check-ins | Owners who want an expert in their corner long term |
Interim management | A consultant steps in to lead for a short period | Leadership gaps, sudden departures, transitions |
Full third-party management | The firm takes over day-to-day operations | Owners who want the plan implemented and owned by the operator |
What Is the Hotel Consulting Process?
A well-run hotel consulting engagement follows six steps:
Discovery. The consultant meets ownership to understand goals, concerns and timeline.
Data review. Financials, STR or comp set reports, labor data, reviews and the technology stack.
On-site assessment. Walking the property, watching operations and talking to the team. This is where the real story usually is.
Findings and priorities. What is broken, what it costs, and what to fix first.
Action plan. A 30/60/90-day roadmap with clear owners and measurable targets.
Implementation and reporting. The owner's team executes, or the consultant stays on to support or manage, with regular reporting against the targets.
Who Hires a Hotel Management Consultant?
Hotel management consultants are hired by the people who carry the financial risk of a hotel:
Independent hotel owners who compete against brands with full corporate support teams and want that same strategic firepower without the corporate fees
Franchise-affiliated owners of Marriott, Hilton, Hyatt, IHG and other branded hotels who need help with brand standards, PIPs and comp set performance
Owners of distressed or underperforming hotels who need a turnaround plan
Private equity firms, REITs and investors who need to protect and grow asset value, or test whether a hotel is worth acquiring
Developers planning a new hotel from site selection to opening day
Management companies that want an outside view across several properties
Signs Your Hotel Needs a Consultant
Most owners I talk to do not know exactly where their property is underperforming. They have a feeling. That feeling is almost always right. Watch for these signs:
Your RevPAR Index has slipped below 100, or keeps sliding
Occupancy is fine but ADR has stalled, or ADR is fine and occupancy is falling
Labor costs keep rising faster than revenue
Review scores have plateaued or dropped, and the same complaints keep coming up
A PIP or major renovation is on the horizon and you are not sure what it will cost or return
You are preparing to sell, refinance or buy
Your management company sends a monthly report but you rarely see them in the building
Turnover is high and the team is showing up but not standing out
If two or more of these sound familiar, an outside review will pay for itself.
How to Choose a Hotel Management Consultant
Not all hotel consultants have run a hotel. That matters. Ask these questions before you hire one:
Have you actually operated hotels? Look for someone who has been a GM, a regional manager, or on the ownership side. Spreadsheet experience alone misses what happens on the floor.
Have you worked with hotels like mine? Brand, size, market and service level all change the playbook.
What will I receive, and when? Get specific deliverables and a timeline in writing.
How will we measure success? Agree on the KPIs up front, such as RevPAR Index, GOP margin or review scores.
Will you stay to help implement? A plan without follow-through rarely changes results.
Can I talk to an owner you have worked with? References from ownership groups tell you more than any case study.
How Presley Hospitality Approaches Hotel Management Consulting
Presley Hospitality is a hotel management and consulting firm based in Franklin, Tennessee, led by Greg Presley. We work with hotel owners and investors across the United States, from single independent properties to branded hotels under Marriott, Hilton, Hyatt and IHG flags.
Our approach comes down to one idea: bring an owner's mindset back to hotel management. That means:
We have sat in every chair. General manager, regional manager over as many as 14 Marriott and Hilton hotels, development, asset management, investor relations and owner relations. I know what a problem looks like from the front desk and from the ownership seat.
We are in the building. Not managing from a distance through a monthly report and a conference call.
We tell owners the truth. Owners deserve straight answers and a clear plan, not a glossy report.
We stay for the fix. If an owner wants us to implement the plan, we can do it as their third-party management company.
One extended-stay owner representative put it this way: the property reached brand scores among the top performers nationally, saw dramatic NOI growth, and hit a best-in-market RevPAR Index through ADR growth, not bought occupancy.
Start With the Turn Around King Package
Every Presley engagement can start with the Turn Around King Package, a free hotel performance audit. No cost. No obligation. Just answers. It covers:
Sales and revenue strategy: ADR, RevPAR and occupancy benchmarked against your comp set, plus your full sales mix
Operational efficiency: labor costs, departmental performance and vendor spend
Maintenance and capital expenditures: physical condition, deferred maintenance and PIP requirements
Guest experience and online reputation: reviews across every major platform and the recurring issues costing you bookings
Technology and AI integration: how your property uses the tools top performers rely on
For a deeper look at how the audit works, read Is Your Hotel Leaving Money on the Table? Here's How a Professional Hotel Audit Changes That. To see our full range of management, development and consulting work, visit our Services page.
If your hotel is not performing the way it should, the first step is understanding exactly why. Book a meeting with me directly or email greg@presleyhospitality.com.
Frequently Asked Questions About Hotel Management Consulting
What does a hotel management consultant do?
A hotel management consultant diagnoses why a hotel is underperforming and builds a plan to fix it. They review revenue, operations, costs, guest experience, capital needs, leadership and technology, then deliver a prioritized action plan the owner's team can execute.
What is the difference between hotel consulting and hotel management?
A hotel consultant diagnoses problems and recommends solutions. A third-party hotel management company runs the hotel day to day under a management agreement. Some firms, including Presley Hospitality, offer both.
How much does hotel management consulting cost?
Cost depends on scope. Consultants usually charge a project fee for defined work like an audit or turnaround plan, or a monthly retainer for ongoing advice. Third-party management companies typically charge a base fee tied to revenue plus an incentive fee tied to profit. Presley Hospitality's first step, the Turn Around King Package hotel performance audit, is free.
How long does a hotel consulting engagement take?
A focused audit or assessment can be completed in a matter of weeks. Turnarounds and advisory retainers usually run several months or longer, depending on how much needs to change.
When should a hotel owner hire a consultant?
Hire a consultant when your RevPAR Index falls below fair share, costs rise faster than revenue, review scores slip, a PIP or renovation is coming, you are preparing to buy or sell, or your current management company is not delivering results.
Do hotel consultants work with independent hotels?
Yes. Independent hotels often benefit most, because they compete against branded hotels without a corporate support team. A consultant gives independent owners the revenue, operations and sales expertise the brands provide.
What is a hotel performance audit?
A hotel performance audit is a structured review of a hotel's revenue, sales, operations, maintenance, capital needs, guest experience and technology, benchmarked against its competitive set. It shows where the hotel is losing money and what to fix first.
Is there a hotel management consulting firm in the Nashville area?
Yes. Presley Hospitality is a hotel management and consulting firm based in Franklin, Tennessee, in the Nashville area. It is led by Greg Presley, who has more than 40 years of hotel experience, and works with hotel owners and investors nationwide.
About the Author
Greg Presley is the Founder and CEO of Presley Hospitality, a third-party hotel management and consulting firm headquartered in Franklin, Tennessee. Known in the industry as "The Turnaround King," Greg has more than 40 years of hands-on hotel experience across Marriott, Hilton, Hyatt and IHG brands, spanning operations, development, asset management and investment strategy. He works with hotel owners and investors nationwide to turn around underperforming hotels and maximize asset value.
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