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'HR Transformation within the hotel industry: building capacity for change' AbstractPurpose -This research aims to identify recent trends in the strategic repositioning of the HR function within the hotel industry, and to explore challenges facing HR professionals as they engage in strategies to develop talent and organisational capability, while also adjusting to the shifting boundaries of the HR function.Design/methodology/approach -A case study investigation based on a qualitative research design. It draws on a series of informal discussions with key informants, indepth round table discussions with members of the HR function, and a rich source of secondary (company specific) data about a recent strategic change initiative.Findings -The study presents a rich picture of the contradictory nature of the strategic repositioning of the HR function, and the role of electronic HR systems in shaping this. It points to the significance of 'higher'-order HR capabilities associated with the functions' capacity to engage in strategies to develop talent and organisational capability.Practical implications -This study points to contradictions and tensions in shifting the focus of the HR function from 'operational' to 'strategic' management of talent. It offers four practice implications in the areas of CPD and building HR and line manager skills in dialogue, project management, and the use of new technology, talent data and analytics.Originality/value -This study illustrates the deployment of talent management practices within a broader OD remit to restructure the business and HR function in pursuit of more efficient and effective People management.