This article examines the relationship between human resource management and performance in the UK hotel industry. Using data from over 200 hotels, the results demonstrate, ®rst, that the relationship between HRM and performance is dependent upon the business strategy the hotel is pursuing; second, that hotels pursuing an HRM approach coupled with a quality focus within their business strategy perform best; and, ®nally, that HRM is more likely to contribute to competitive success where it is introduced as an integrated and coherent package, or bundle of practices.