In hospitality, effective spend management is essential to protecting a property’s bottom line. As continued labor shortages and rising commodity prices challenge profitability across the industry, many owners and operators are looking to identify effective cost-saving measures without sacrificing quality or passing along a price increase to guests.

HSM’s innovative, white-glove property review service was developed to help properties identify new product and process alternatives, solve for operational pain points and discover new cost-savings by category, uncovering actionable savings opportunities specific to an individual property’s spend.

"Having walked in our customers’ shoes, we recognize the imperative to identify savings without compromising on quality or compounding labor costs," said Vito Curalli, HSM’s Vice President of Sales & Services. "Our goal with every review is to help customers maximize programs within their property while making the best use of their time and their team."

Each review begins with an extensive analysis of property-level spend reporting to identify potential savings in key areas ranging from contract terms and delivery cadence to commodity alternatives and in-house preparation. After identifying potential cost-savings by category, HSM conducts a site visit to validate findings, meet with Team Members and develop solutions.

The on-site audit includes:

• In-depth walkthroughs of each department, engaging frontline Team Members to assess the flow of goods, delivery schedules, inventory levels and storage/prep areas
• Conversations with frontline Team Members and leadership to review staffing practices and uncover operational pain points
• Review of product quality and sourcing practices, ensuring alignment with contracted agreements and brand standards
• Analysis of pre-made items against those made in-house, with site-specific suggestions to improve the balance of labor vs. cost
• In-person meeting with the General Manager to provide a general overview of findings

Once the visit is concluded, HSM prepares and delivers reporting to property and above-property stakeholders, outlining findings and proven cost- and time-saving solutions.

HSM’s procurement experts conducted more than 40 property reviews in 2024, uncovering millions in actionable savings opportunities and cost avoidances for partnering hotels. On average, properties utilizing non-contracted suppliers for similar products experience negative cost impacts up to 33%, while misaligned purchasing—ordering commodities outside of the program agreement from contracted suppliers—can increase costs by up to 68%.

HSM proposes tailored cost-saving measures that are customized to each property’s needs, as there’s no effective "one-product-fits-all" procurement model. One property saw 34% savings on beef by switching from a national supplier to grass-fed, low carbon emission beef from a neighboring farm. Another found 25% savings in the simple solution to proactively offer guests one key card instead of two. At a third, the team acted on our suggestion to transition from pre-cooked muffins to gourmet scoop-and-bake batter, elevating product quality, reducing spoilage and adding a gluten-free option, while also realizing 48% in savings.

 "Our team identifies real numbers, linked to actionable steps hotels can implement immediately to maximize spend efficiency, improve operations and strengthen their property’s purchasing culture. Monetary savings are a natural byproduct of that work," said Curalli.

HSM’s property review service illustrates the significant value the right procurement partnership can bring to your operations. Hotels looking to enhance their operational efficiency and identify actionable cost-saving opportunities are encouraged to reach out to HSM at HSMx@hilton.com for an in-depth spend analysis.