Hot Topics: Procurement, collaboration and technology drive ROI

Rising guest expectations and shrinking margins are pushing hotels to find smarter, faster ways to run operations, control costs and elevate the guest experience.
The latest Hotel Business Hot Topics session, “Optimize and Automate Your Procurement to Fuel ROI,” in partnership with Entegra, explored how hotel operators are balancing rising costs, supply chain volatility and guest expectations, while using technology and strategic partnerships to strengthen operations.
Noderated by Glenn Haussman, founder/host, No Vacancy Live podcast, the panel included Lisa Carlson, SVP, operations, Remington Hospitality; Lars Schrader, VP, operational strategies, Atrium Hospitality; Jennifer Viccellio, senior director, procurement services – account initiatives and development, Choice Hotels; and Jeffrey Simmons, VP, supply management, hospitality, Entegra/Sodexo.
Carlson began the session by highlighting the financial pressures facing hotels today. “We’ve seen a lot of ADR erosion, which has really been difficult in terms of trying to produce financial performance,” she said. “Expense reductions and managing expenses have become even more the focus, and that’s been a real challenge for the industry.”
Haussman noted that occupancy trends were also a concern, reinforcing the need for more than just revenue growth. Schrader emphasized the importance of resilience, not just reaction. “It’s really about building resilience into everything that we’re doing, especially when it comes to cost management and planning,” he said.
Consulting on procurement strategies with its franchisees is something that Choice Hotels does to help them with that cost management and planning, according to Viccellio. “We help to develop a procurement strategy so that we can buffer against some of the challenges that our hotels are seeing,” she said. That work includes mitigating supply chain issues while preserving brand standards, which are essential to guest trust.
The executives agreed that group purchasing organizations (GPOs) play a central role in boosting hotel efficiency and guest satisfaction. Simmons noted that leveraging GPO partnerships can bring both cost savings and operational resilience. “Choice is a fantastic customer for us,” he said. “It’s that partnership, and I think Lars focused on what I think is an important word, which is resiliency and really planning, and how you build that into your business in these difficult times.”
Schrader added that savings alone are insufficient. “Margins continue to tighten, and expectations are growing from guests and stakeholders,” he said. “It’s not just about cutting costs, but being intelligent and strategic about how we use our funds from a procurement perspective, and doing so without compromising the overall guest experience.”
The panelists shared concrete examples of successful collaboration with GPOs. Schrader brought up Atrium’s high participation rate with its GPO, noting that it contributed to being ranked the top hotel company in the U.S. for guest service by J.D. Power.
“We put our efforts in, and we get the efforts out from our GPO, which helps with pricing, but really with the quality product that our guests are looking for,” he said.
Carlson described how proactive GPO engagement can avoid unexpected costs. She recounted a recent order for linens where her GPO advised adjusting the purchase timing to avoid $7,000 in tariffs. “It’s incredibly helpful to have those insights,” she said, noting that the company holds near-weekly strategic conversations with its partners.
Data and technology are key enablers, according to the panelists. Schrader explained that analytics help minimize waste, improve supplier management and streamline internal processes.
Simmons underscored that AI is meant to supplement staff rather than replace them, helping teams operate more efficiently and deliver better guest service.
Schrader added that AI is increasingly used in HR and recruiting, improving associate experiences and helping attract top talent. Carlson and Haussman agreed that technology, including robotics and automation, can free staff from repetitive tasks to focus on guest interactions.
Looking to 2026, Carlson stressed using technology strategically to improve forecasting, budgeting and operational efficiency. “Spend a lot less time looking in the rearview mirror and a lot more time looking ahead at forecasting and making sure that we’re planning spend and purchasing at the right times,” she said.
Simmons added that predictive analytics and business process outsourcing can further streamline operations and decision-making.
The panelists concluded with advice for industry peers. Schrader recommended elevating procurement from a back-office function to a strategic pillar that supports long-term growth and resilience. Carlson emphasized the importance of curiosity and embracing technology to enhance both staff and guest experiences. Simmons encouraged comfort with being uncomfortable, using partnerships like GPOs to extend organizational capacity.
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Source: hotelbusiness.com