Hotel leaders have a powerful asset: spend data. Results come when that data improves daily decisions, including what to buy, what to substitute and what to standardize.
The webinar, “The Digital Layer of Procurement: Turning Spend Data Into Profitability,” hosted by HOTELS Magazine in partnership with Entegra, explained how procurement teams use spend visibility, benchmarking and guided purchasing insights to improve profit margins and efficiency.
Here are the main themes discussed in the webinar, which you can watch in full below.
1. A challenging environment
Hotel owners are facing mounting financial pressure as inflation, tariffs, fuel costs and higher interest rates continue to outpace revenue growth. “We’re definitely in an environment where expenses are rising faster than revenues are,” said Kirk Pederson, COO of PM Hotel Group. “A lot of those increases are out of our control.”
That dynamic has shifted the industry’s focus from topline growth alone to a much sharper emphasis on profitability and operational efficiency. Rachel Dabrowa, VP of sourcing operations and engagement at Wyndham Hotels & Resorts, noted that sourcing and procurement have become significantly more strategic as every purchasing decision now directly affects owner returns. “Every dollar counts,” she said, adding that Wyndham’s focus is increasingly centered on total cost of ownership and long-term value rather than simply securing the lowest immediate price.
2. Turning data into action
The discussion repeatedly returned to the growing importance—and complexity—of data management in hotel operations. While operators now have access to more information than ever before, panelists agreed that the challenge lies in turning that data into actionable insights. “The access to data isn’t necessarily the blind spot,” Dabrowa said. “It’s turning it into action.”
Debbie Shepard, director of digital solutions at Entegra, echoed that sentiment, arguing that traditional backward-looking reporting is no longer sufficient in today’s operating environment. Instead, operators increasingly need real-time visibility into purchasing trends and performance metrics to make faster decisions and adjust spending behavior before monthly or quarterly results are finalized.
3. Simplifying data analysis
Panelists also discussed how hotel companies are attempting to simplify data analysis for on-property teams already stretched thin by daily operational responsibilities.
Pederson said PM Hotel Group’s corporate structure functions as a “support center” designed to help hotel-level teams interpret data and identify opportunities quickly. “They don’t have the time,” Pederson said of hotel general managers. “Our role is to analyze this data and give them direction.”
However, integrating information across multiple systems remains a major hurdle for operators managing hotels across several brands. Pederson pointed to the ongoing challenge of connecting PMS, POS, accounting and procurement platforms into one streamlined ecosystem that produces usable insights.
4. Assessing AI
Artificial intelligence emerged as another major topic during the webinar, as it has become an essential tool for simplifying operations and improving purchasing decisions.
Shepard said AI development in procurement technology is advancing carefully, with companies focused on ensuring accuracy and maintaining client trust before rolling out large-scale capabilities.
Dabrowa added that Wyndham already sees AI playing a key role in improving efficiency, supporting franchisees and helping owners identify savings opportunities more proactively. She added that Wyndham’s procurement and sourcing tools, including Wyndham Marketplace and PriceIQ, are helping provide the real-time visibility needed to eventually support more advanced AI-driven recommendations. “Technology is shifting from just facilitating transactions to actively guiding decisions,” she said.
5. Profitability pressure
The conversation also highlighted the growing pressure owners are placing on operators to preserve margins as refinancing challenges and higher debt costs weigh on hotel performance.
Pederson said most profitability pressure is coming directly from ownership groups rather than brands, as owners contend with tighter debt-service requirements and looming loan maturities. “Every asset manager is focused on every dollar,” he said.
At the same time, panelists acknowledged that many hotels have already been operating lean for years, limiting the number of easy cost-cutting opportunities still available. “There isn’t a lot of juice left to squeeze,” Pederson added.
Even so, they agreed that procurement optimization, real-time spend visibility and smarter technology integration will continue playing a larger role in hotel operations as companies search for new ways to improve margins in a high-cost environment.
Beyond cost-cutting, panelists emphasized that profitability strategies must preserve and enhance the guest experience. While panelists discussed finding savings through procurement optimization, they stressed that not every product should be treated equally. “There are many ways to reduce costs without impacting the guest experience,” said Dabrowa, pointing to lifecycle value and durability as more important metrics than upfront price alone. Towels, for example, may appear cheaper initially but can cost more over time if they wear out faster and require replacement sooner.
6. Quick wins
The conversation repeatedly returned to the role of data in identifying “quick wins.” Debbie Shepard highlighted examples ranging from switching commodity products such as pepper packets or yogurt brands to leveraging group purchasing power for services like landscaping, pest control and elevator maintenance. Many of those changes, panelists said, can deliver savings without guests ever noticing.
Kirk Pederson argued that the larger challenge is behavioral, not technological. “We’ve been buying the same pepper packs for 10 years,” he joked, describing how hotel teams often default to familiar purchasing habits. AI-driven procurement tools, he said, can help operators identify lower-cost alternatives while staying within brand standards.
To-go thoughts
As the webinar concluded, panelists encouraged hotel operators to focus on incremental improvements rather than sweeping overhauls. Dabrowa recommended identifying one high-spend category and standardizing purchasing practices, while Shepard suggested operators use AI tools and invoice analysis to pinpoint areas for savings. Pederson advised hoteliers to conduct purchasing audits throughout the year instead of waiting until year-end reviews.
Profitability is no longer solely about cutting costs, but about using spend data strategically to balance operational efficiency, guest expectations and long-term asset performance.