Managing a hotel in tough times really shouldn’t be much different than managing one in good times. Excellence in operations is important regardless of the economic cycle. However, there are certain things you should really focus on in a slow economy to improve profitability, but also to maintain morale and enhance guest satisfaction. The key is to focus on the basics.

Provide support. The most important aspect of operating a hotel is its people. While the hotel may be facing tough times, chances are the associates’ predicaments may be worse. Don’t let them feel like they’re alone. Morale can be very volatile in a difficult economy, especially if the rent will soon be due and hours have been cut back.

Make your associates a part of the solution, not part of the problem. Tell them candidly what you see over the near term and how it will affect them. Seek their help in running the hotel more efficiently. You will be surprised at how many good ideas will surface.

Always focus on the positive. Even if the glass is two-thirds empty in your market, focus on the third that is full. Celebrate the successes and lavish praise very publicly. If your associates don’t feel positive about themselves, they’ll be less likely to provide appropriate levels of service to guests.

Maximize your revenues. In our 35 years of operating hotels, we have learned cheaper hotel room rates don’t create more travel. General managers have to be totally on top of local market conditions. They have to know the market’s occupancy and rates, both past and near-term future. You have to be incredibly flexible and nimble in your rate structure and must completely understand the market to price accordingly.

Cut paperwork and bureaucracy. Headquarters sometimes gets so caught up in reports we often don’t give GMs sufficient time to do their jobs. Take a look at your paperwork requirements and find a way to cut it by at least 25 percent, either by eliminating it or computerizing it. That will free up your GM to provide better service and sell more.

Manage cash flow and receivables. When cash becomes scarce, some clients may try to extend their payment well beyond the 30-day cycle. If you don’t manage the process carefully, you could find yourself with a sizeable number of bad debts before the economy rebounds.

Don’t forget that you’re in a cash business, not a credit business. We created an Internet-based, proprietary system that invoices our accounts via e-mail on a daily basis. This electronic paper trail pre-empts the excuse of lack of documentation and avoids the “I don’t think we received the invoice, send me another one,” response that tends to spring up in tougher times.

Train now more than ever. One of the reasons basketball great Michael Jordon remained at the top of his game for so long was that he never stopped training. We provide training to our GMs at least four times a month, including regional director visits, huddle calls to discuss common issues and teleconferences on how to be a better manager and leader; as well as GM school and an annual convention. Now is not the time to cut back in this important area.

Play it cool this winter. There are a number of emerging technologies that will have a dramatic impact on energy usage, one of the most difficult costs to control. It is amazing how small things like turning off the lights or HVAC in empty rooms can reduce your energy usage. Setting the temperature control to an appropriate level when a housekeeper exits the room is simple and cost effective. If you pay close attention, you should be able to reduce usage by 10 to 15 percent.

Monitor labor productivity. You have to deal honestly with the pain of scheduling fewer hours for your associates. Chances are many hold several part-time jobs. Do your best to provide them with scheduling information as far out as possible, so they can find ways to offset the loss of pay. They will appreciate your integrity and support.

Finally, remember guests expect a clean, comfortable room and friendly service. When you fail to deliver, you automatically send your hotel into a downward spiral. Stay positive and you’ll generate higher profits than your peer group and be better positioned for the inevitable rebound.

Terry Royer is co-founder and executive chairman and Greg Royer is president and co-founder of Royco Hotels, a third-party management company operating more than 110 hotels, headquartered in Calgary, Alberta, with corporate offices in Norfolk, NE.