A Hospitality Journey: Peter Kilbourne on Lean Operations, the Owner-Operator Edge, and the SPARKLE Initiative

From a 14-year-old dishwasher hooked on the fast-paced hustle and bustle of a country club kitchen to the Senior Vice President of Operations for a top 50 hotel management company, Peter Kilbourne’s career is defined by a relentless focus on the behind-the-scenes work that makes hospitality possible.

He caught up with Sarah McCay Tams, Head of Editorial at Actabl, to discuss his journey from the dish pit to an executive role, the unique agility of the owner-operator model at CSM Corp., and how he is using AI-driven programs to protect margins in a high-wage economy.

Sarah McCay Tams, Head of Editorial at Actabl: Peter, let’s go back to the beginning. How did you first get your start in the industry?

Peter Kilbourne, SVP of Operations - Lodging at CSM Corp: At 14, I worked at a country club in the summer as a dishwasher. That job got me hooked on hospitality. I loved being in such a fast-paced environment. I worked my way up to cook, and by 16, I was managing a takeout restaurant on the beach. Working your way from the ground up gives you a much greater appreciation for what your line-level staff go through daily.

Sarah: What was the turning point that moved you from the kitchen to hotel operations?

Peter: I was 18, working as a line cook, and I reached the point where I was going home every day smelling like onions and fish. I was the guy doing the prep work nobody else wanted to do! I realized hospitality was broader than just restaurants, so I looked for hotels in Salem, Massachusetts.

I got hired at the historic Hawthorne Hotel and quickly realized I could work with a team where everyone was on the same page, wearing a suit and tie, and enjoying the air conditioning! From that point on, I never went back to the kitchen.

Sarah: Tell us about CSM Corp today. What makes the company’s structure so unique?

Peter: We have about 2,000 employees across 29 hotels spread geographically throughout the country. What makes us unique is that we own and operate everything.

Our company is not governed by a REIT or a board of directors. That gives us a lot of autonomy. For example, when Marriott didn't have a clear way to communicate housekeeping frequency post-COVID, we didn't wait. Our in-house marketing team created proprietary vinyl clings for the mirrors to tell guests exactly what to expect. Because we are an owner-operator, we can make those above and beyond decisions quickly in the best interest of our portfolio.

Sarah: You’ve mentioned that managing through the Great Recession was one of your biggest professional challenges. What did you learn from that period?

Peter: I saw our booking pace dropping off a cliff in 2008. As GM, I went to my VP and volunteered to lay off two of my managers because I knew we couldn't produce a return otherwise.

We found that with a leaner staffing model, we actually gave better service. When you have three people at a front desk during low occupancy, they get bored and distracted. When we reduced it to one or two, they stayed engaged. We ended up having one of our best years for margin improvement in 2010, and I won GM of the Year in 2011. It taught me that efficiency drives excellence.

Sarah: Labor costs are a massive topic right now. How is CSM addressing the rise in wages?

Peter: Between 2019 and 2025, our average wages went up 47%. To protect our margins, we had to get more productive. In 2023, we rolled out a labor management tool with Hotel Effectiveness and the STEPS program.

We didn't do a hard mandate; we did a soft six-month launch so managers could get comfortable. Within the first 12 months, we saw a 200% return on investment. We were saving up to 10 minutes of labor per occupied room. We mitigated those rising wage costs by increasing productivity over 2019 levels.

Sarah: What is the SPARKLE initiative we’ve been hearing about?

Peter: We are launching our own internal housekeeping efficiency program, called SPARKLE. The program teaches safety, efficiency, and quality. Our marketing team has created the logos, and we’re working with a photographer to produce bilingual training videos. It’s about keeping those productivity gains ‘sparkling’ and ensuring our teams stay engaged with the tools.

Sarah: As the industry becomes more tech-forward, where do you see the biggest challenge for the staff?

Peter: Most guests now prefer using apps for keys and communication. That makes the front desk very tech-focused. The challenge is the expectation of an immediate response. When a guest chats with us virtually, they expect an instant reply like an AI bot, but we are still human beings dealing with other guests in person. Because virtual chat is black and white, you lose the guest’s tone. We have to train our staff to tailor their digital messages with extra gratitude to meet that need.

Sarah: Finally, looking ahead, what excites you most about the future of hotels?

Peter: For me, it’s about launching SPARKLE and keeping our productivity gains alive. While wages have somewhat stabilized, we are still seeing margin decline. As good stewards for our ownership group, our job is to mitigate that loss.

We have a lofty goal this year: a minimal gain in RevPAR with no margin loss. When you consider that the cost of goods and wages are predicted to grow by 3%, staying flat on margin is a challenge. Launching SPARKLE and ensuring consistent utilization of Hotel Effectiveness is our path forward for 2026. We want to create energy and buzz around SPARKLE to keep efficiency top of mind. Even if we don't show a gain, just not slipping is a success. Without accountability and enforced training, it’s far too easy for margins to slide.

• Discover how CSM Corp. is leveraging technology and autonomous leadership to redefine the owner-operator model. Learn more here.