Hotel General Manager National Occupational Standards: The GM Role, Governance and Performance
What the standards actually describe
The General Manager standards describe a role that is simultaneously strategic, commercial and operational. A candidate must be able to explain the GM's accountability for four connected outcomes: guest experience and brand standards; financial performance (revenue, cost, profit, cash); people (recruitment, development, retention, legal compliance); and asset stewardship (property condition, safety, licensing). Understand the governance layer too: owners or asset managers set expectations, brand standards constrain local decisions, and statutory duties (fire safety, food hygiene, licensing, employment law, data protection) sit with the GM even when tasks are delegated.
Concepts to master
Know the difference between accountability (the GM answers for the outcome) and delegation (tasks transfer, accountability does not). Understand the planning hierarchy: corporate strategy, annual business plan, departmental budgets, daily operational controls. Be fluent in the core performance measures: occupancy, average daily rate, revenue per available room (RevPAR), gross operating profit per available room (GOPPAR), labour cost percentage, and guest satisfaction scores. Recognise that departmental managers own departmental results while the GM integrates them.
Traps in questions
Questions often test whether you can separate operational from strategic responsibility, or compliance from commercial decisions. Watch for options that sound efficient but breach a statutory duty, or that delegate accountability. Another common trap is confusing revenue with profit: high occupancy achieved through deep discounting can reduce RevPAR and profit. Also beware answers that treat brand standards as optional when they are contractual.
Rule of thumb and worked example
Rule of thumb: when a scenario asks what the GM should do, choose the option that (1) protects safety and legal compliance, (2) informs the owner or corporate office, and (3) addresses the cause rather than the symptom.
Worked example: a hotel has 200 rooms, sells 150 at an ADR of 120. Occupancy is 75%, RevPAR is 0.75 x 120 = 90. If a discount campaign lifts occupancy to 85% but ADR falls to 100, RevPAR becomes 85 - a fall. The GM should question the campaign on RevPAR and profit grounds, not occupancy alone.