This study investigates the role of national culture and balanced organisational culture in organisational performance. Hotel management requires flexibility and customer responsiveness to deal with increasingly demanding customers and competitiveness of the market. Studies of the influence of culture on performance in hotel management have not yet revealed the specific impact of national culture and balanced organisational culture on organisational performance. We use the concept of balanced organisational culture which posits that polyrational organisations are more responsive to market changes and more innovative. Data were gathered from 96 hotels in London, UK, and were analysed using structural equation modelling. Our findings show that the national culture of hotel employees influences balanced organisational culture which, in turn, influences performance. This study contributes to existing understanding of factors affecting performance, points towards further research, helps practitioners by demonstrating the importance of taking national culture into account and indicates the importance of achieving balanced organisational culture.