Rebuilding a 120-Key Resort During a Price War

What I Walked Into

When I became General Manager, the resort was operating reasonably well but leaving substantial revenue and margin on the table. Local competitors were cutting room rates below breakeven, while the property’s systems, layout, and guest flow limited its own performance. I chose not to join the price war.

Starting With the Operation

I began by shadowing frontline staff, asking questions, and mapping the points where daily work broke down. Only then did I start changing the operation.

Paper-based processes moved into digital tools, including a custom Google Sheets operating system and bespoke POS. This made daily work faster and more accurate while giving management clearer operating and financial information.

I also introduced a 24-hour staffing model. It lowered labour costs while extending service coverage, and it gave the property a more consistent operating rhythm across the day and night.

Raising Prices During a Price War

Rather than chase competitors downward, I raised ADR and repositioned the resort for guests who valued the experience rather than the lowest available rate. Occupancy and guest F&B spend increased alongside the higher room rate.

That pricing decision depended on making the experience worth more. I mapped how guests moved through a day at the resort, then coordinated staff interactions, programming, lighting, music, and events so activity built naturally toward the evening and onward to local festivals.

Rebuilding the Property Around Guest Flow

The poolside bar, then the property’s main social focal point, split evening activity at the moment guests needed to come together. I demolished it, moved the main bar indoors, constructed a new wing, and reorganised the property into three connected zones:

• Chill zone: a quieter area in the former pool-bar space
• Social and party zone: the dining area and new bar
• Active zone: pool, ping pong, and beer pong tables

Guests could choose the setting that suited them without leaving the shared social environment. The layout also gave the team a clearer way to manage energy and movement through the property.

Results

• Increased ADR by 40% while sustaining 2-4x competitor occupancy
• Expanded F&B gross margins from 15% to 50%
• Built clear market leadership: during off-peak periods, the resort bar often attracted more guests than all local competitors combined
• Improved room and F&B performance without following competitors into below-breakeven pricing