Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy
Hotel Procurement — Definition, Process + Examples
Table of contents
- What is Hotel Procurement?
- The 7 Steps of the Hotel Procurement Process
- 3 Real-World Examples of Successful Hotel Procurement
- Challenges in Hotel Procurement
- Best Practices in Hotel Procurement
- Benefits of Strong Hotel Procurement
- The 8 Common Spend Categories in Hotel Procurement
- Conclusion
- Frequently asked questions
- Hotel procurement is the process of how hotels buy and manage everything they need, from towels and toiletries to food, furniture, and technology. It helps hotels stay organized, keep quality high, and give guests a smooth, comfortable stay.
- A good procurement process makes sure nothing runs out, every product meets brand standards, and guests always get the experience they expect.
- The best hotels use smart buying systems, strong supplier relationships, digital tools, and sustainable choices to save money, reduce risks, and keep operations running efficiently.
What is Hotel Procurement?
Hotel procurement is the strategic process hotels use to source, purchase, and manage everything they need to operate smoothly. It goes far beyond simple buying. Hotels must ensure that every item, service, and supplier contributes to a consistent guest experience, supports brand standards, and fits within budget.
Because hotels operate every day, procurement must ensure continuous availability. A missing set of towels, a delayed food delivery, or broken equipment can directly affect guest satisfaction. This makes procurement a critical business function, not just an administrative task.
Modern hospitality procurement also includes supplier evaluation, risk management, contract negotiation, sustainability requirements, and cost-control measures. Well-designed procurement systems help hotels reduce waste, streamline operations, and deliver a consistent, high-quality guest experience.
The 7 Steps of the Hotel Procurement Process
Below are the seven steps that structure the entire hotel procurement process.
1. Procurement Methodology
Before a hotel begins placing orders, it must establish a clear procurement framework. This includes defining spend categories (OS&E, FF&E, F&B, housekeeping, maintenance), setting budgets, establishing quality standards, and forming a cross-functional team that includes operations, finance, and procurement.
This “roadmap” ensures that sourcing aligns with the hotel’s strategic goals: cost control, supply stability, quality consistency, and a strong guest experience.
2. Market Research
The hotel team then analyzes the market and potential suppliers. This includes comparing prices, product quality, delivery capabilities, certifications, sustainability practices, and logistics performance.
When sourcing linens, hotels check fabric type, durability, delivery speed, and the supplier’s ability to scale during peak season. Thorough research prevents shortages, inconsistent quality, and expensive last-minute orders.
3. Request for Information (RFI)
At this stage, the hotel sends RFIs to potential suppliers to gather detailed information about their capacity, product specifications, certifications, delivery options, and pricing. Internally, departments such as housekeeping, F&B, and maintenance confirm the exact technical requirements. RFI responses help the hotel shortlist suppliers who can meet operational and quality expectations.
4. Request for Quotation (RFQ)
Once the shortlist is ready, the hotel issues RFQs with precise requirements: quantities, pricing, minimum stock levels, delivery terms, payment terms, and urgent delivery options. In hospitality, price matters, but not at the expense of service. A supplier offering a lower price but unable to deliver during peak season could cause shortages, guest complaints, and compensation costs.
5. Negotiation Phase
Negotiation in the hotel sector covers more than price. Hotels negotiate on:
• delivery schedules
• product quality
• seasonal volume increases
• minimum stock agreements
• warranties and returns
• contract duration and discount tiers
Example: “If we sign a one-year agreement, can you guarantee 24-hour delivery for essential housekeeping supplies during the high season?” The goal is to balance cost, quality, and operational flexibility.
6. Contracting Phase
After reaching an agreement, every detail must be defined in the contract: product specifications, quality levels, logistics, delivery timelines, replacements, claims procedures, storage requirements, and inventory rules.
Digital Contract Lifecycle Management (CLM) systems help hotels track obligations, stay compliant, and maintain consistency across properties.
7. Supplier Relationship Management (SRM)
The procurement process does not end with the contract; it begins there. SRM includes:
• delivery monitoring
• quality checks
• supplier scoring (OTIF, complaint rates, F&B freshness, linen durability, etc.)
• regular performance reviews
• long-term partnership development
Hotels that maintain strong supplier relationships enjoy better supply stability, lower risk, and greater flexibility when unexpected needs arise.
3 Real-World Examples of Successful Hotel Procurement
Hotels that invest in structured, data-driven procurement consistently achieve better guest satisfaction, lower costs, and greater operational stability. Below are three real-world style examples that show how strong procurement practices create measurable impact.
1. Marriott International: Global Standardization and Centralized Buying
What They Do:
Marriott, one of the world’s largest hotel groups, manages thousands of properties that rely on consistent quality. To achieve this, Marriott built a global procurement system that centralizes sourcing, standardizes products, and negotiates long-term contracts across key categories such as linens, FF&E, and cleaning supplies.
How It Works:
Marriott uses a centralized e-procurement platform that gives every property access to approved products and suppliers. Product specifications, quality standards, and pricing are unified across regions.
They negotiate multi-year agreements with strategic suppliers to secure volume discounts, better warranties, and guaranteed peak-season availability. Properties order through the same system, ensuring consistency in quality and full visibility into spend data across the entire portfolio.
Why It’s Effective:
- Ensures consistent guest experience across thousands of hotels.
- Reduces total spend through negotiated global pricing.
- Improves supply reliability and reduces emergency purchases.
Marriott’s model shows how scale, standardization, and technology create a stable and cost-efficient procurement ecosystem.
2. Accor Hotels: Digital Procurement and Sustainability Integration
What They Do:
Accor has modernized its procurement through end-to-end digitalization and a strong focus on ESG. Their procurement team uses automated tools to streamline ordering, monitor supplier performance, and embed sustainability criteria into sourcing decisions.
How It Works:
Accor’s platform centralizes purchasing for OS&E, F&B, and services. Hotels submit orders digitally, track deliveries, and access approved product catalogs in real time.
Suppliers are evaluated through a sustainability scorecard that measures packaging reduction, eco-materials, fair labor practices, and carbon footprint.
The system also connects procurement with finance, enabling accurate forecasting and spend visibility across regions.
Why It’s Effective:
- Reduces manual work and eliminates ordering errors.
- Strengthens sustainability compliance across all properties.
- Improves supplier accountability with data-driven scorecards.
Accor’s approach shows how digital tools and ESG-focused procurement create operational efficiency and a stronger brand reputation.
3. Hyatt Hotels: High-Quality F&B Sourcing Through Regional Partnerships
What They Do:
Hyatt focuses heavily on food quality and freshness as part of its guest experience strategy. To achieve this, they partner with regional F&B suppliers who can deliver fresher products faster and with better control over food safety.
How It Works:
Hyatt builds long-term relationships with reputable local producers and distributors. These partners provide shorter delivery routes, faster replenishment, and flexible quantities during peak occupancy.
Hyatt also uses rigorous vendor audits to ensure food safety, traceability, and consistency across all restaurants and kitchens in the chain. Procurement teams analyze consumption data to forecast needs accurately and reduce waste.
Why It’s Effective:
- Fresher ingredients and better food quality for guests.
- Lower food waste and reduced spoilage.
- More flexible delivery options during seasonal peaks.
Hyatt’s model shows how targeted sourcing strategies can lift both guest satisfaction and cost efficiency in a critical spend category.
Challenges in Hotel Procurement
The table below summarizes the most common challenges hotels face, along with clear explanations and practical solutions that procurement teams can apply immediately.
Best Practices in Hotel Procurement
Effective hotel procurement requires more than placing orders. It demands clear standards, strong supplier relationships, and well-structured processes that protect service quality and financial performance.
The table below highlights the most important best practices hotels use to streamline operations, reduce costs, and deliver a consistent guest experience.
Benefits of Strong Hotel Procurement
A well-designed procurement function gives hotels more than cost savings. It improves stability, elevates the guest experience, reduces risk, and strengthens long-term performance.
The table below shows the key benefits hotels gain when procurement processes are structured, data-driven, and strategically managed.
The 8 Common Spend Categories in Hotel Procurement
Hotels buy a huge variety of products and services every day, everything from towels and toiletries to food, furniture, and software. To stay organized and keep operations running smoothly, hotels group their spending into clear categories. These categories help procurement teams plan better, control budgets, and make sure every item meets the hotel’s quality standards.
Below are the eight most common spend categories in hotel procurement. Understanding them makes it easier to see what hotels buy, why they buy it, and how each category contributes to a consistent and memorable guest experience.
1. OS&E (Operating Supplies & Equipment)
OS&E includes all consumables and small operational items that hotels use every single day. These products directly influence the guest experience and require frequent replenishment.
This category is high-volume and high-frequency, meaning even small disruptions can impact operations.
Examples: linens, towels, toiletries, uniforms, kitchenware, cleaning products.
2. FF&E (Furniture, Fixtures & Equipment)
FF&E refers to all larger, long-term items that define the look, comfort, and functionality of hotel spaces. These purchases are usually capital expenditures and must support durability, brand consistency, and long-term return on investment.
Examples: beds, sofas, lighting, desks, restaurant furniture, gym machines.
3. F&B (Food & Beverage)
F&B is one of the most sensitive procurement categories because it involves perishable goods, safety standards, and strict quality requirements. Hotels must balance freshness, food cost percentages, and supplier reliability.
Examples: fresh produce, dairy, meat, beverages, baked products, minibar items.
4. Housekeeping Supplies
These supplies directly shape the guest’s perception of cleanliness and comfort. Because these items are consumed daily, shortages can negatively affect guest satisfaction and review scores.
Examples: detergents, vacuum bags, paper products, hygiene items, and room cleaning tools.
5. Maintenance, Repairs & Operations (MRO)
MRO ensures that hotel facilities function without interruption. Procurement in this category must be responsive because delays can lead to operational downtime, safety issues, or guest complaints.
Examples: plumbing materials, electrical parts, HVAC components, tools, and paint.
6. Technology & Software
Technology supports nearly every hotel function, including reservations, guest access, billing, security, and Wi-Fi. Procurement must evaluate compatibility, scalability, and vendor support to avoid disruptions.
Examples: PMS, POS, Wi-Fi systems, access control, cameras, payment systems.
7. Professional Services
Hotels often outsource specialized services to external providers. Quality and reliability are crucial, as these services directly impact cleanliness, security, landscaping, and other guest-facing experiences.
Examples: laundry service, cleaning contractors, security services, pest control.
8. Marketing & Guest Experience Items
These items help hotels strengthen branding and enhance the guest journey. They may not appear critical, but they significantly influence guest satisfaction and loyalty.
Examples: printed materials, welcome gifts, event supplies, branded merchandise.
Conclusion
Hotel procurement is more than buying products; it is a strategic function that directly shapes guest satisfaction, operational stability, and financial performance. When procurement is structured, data-driven, and aligned with hotel operations, it becomes one of the strongest levers for improving quality and reducing costs.
A well-designed system ensures that every item delivered to the property meets brand standards, arrives on time, and supports a consistent guest experience. From daily OS&E orders to large FF&E investments, procurement influences every part of the hotel operation.
Hotels that centralize purchasing, build strong supplier partnerships, use digital tools, and plan proactively are the ones that achieve the highest efficiency and the most reliable supply chains. As the examples from Marriott, Accor, and Hyatt show, strong procurement can transform operations, reduce risk, and reinforce the hotel’s brand promise across all properties.
In a competitive hospitality market, procurement is not just a support function; it is a key driver of long-term success.
Frequentlyasked questions
What is hotel procurement?
Hotel procurement is the strategic process of sourcing, purchasing, and managing all goods and services a hotel needs to operate, from linens and cleaning supplies to food, equipment, and technology. It ensures continuous availability, cost control, quality consistency, and a smooth guest experience.
Why is hotel procurement important?
Because hotels operate 24/7, procurement must guarantee that essential supplies never run out. Strong procurement reduces costs, prevents service disruptions, and ensures that every guest receives the same level of quality regardless of location or season.
What technologies do hotels use in procurement?
Common tools include e-procurement platforms, inventory management systems, CLM tools, supplier scorecards, and analytics dashboards. These technologies reduce manual work, improve accuracy, and provide real-time visibility.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.
