HVMG Optimizes Purchasing with Avendra
Hospitality Ventures Management Group (HVMG) is a privately-owned hotel investment, ownership and management company, with an evolving roster of 45 hospitality properties nationwide. In early 2019, HVMG, though always seeking savings and improvements in the procurement process, was specifically looking for assistance in on-boarding a large block of Marriott Courtyard properties as seamlessly and cost-effectively as possible. We talked to Roxanne Rees, HVMG’s Director of Asset Management and Analytics, about how Avendra made a difference throughout the HVMG portfolio.
After an initial market basket analysis, HVMG determined that Avendra’s procurement services could provide the best overall savings and value. A critical task in the multi-phase implementation process was integrating eight Courtyard properties recently acquired by HVMG—each with its unique branding guidelines—into its existing portfolio. Avendra’s deep experience with the Courtyard supply chain, strategic sourcing of brand specific amenities and overall amenity strategy support, as well as its robust e-procurement solution promised major advantages over HVMG’s previous procurement provider.
“The Avendra implementation team found a way to make their programs available to our new properties immediately, producing major savings in terms of cost and downtime. This was a game-changer for us, with our dynamic portfolio—and provided positive signs that remaining phases of our implementation would go smoothly. After just a few months, we have seen Avendra’s expertise helping to make each of our properties more compliant and competitive.”
What Avendra capabilities stand out?
The most prominent is knowledge and support.
”During implementation, Avendra’s hospitality expertise of our entire range of hoteliers—DoubleTree, Embassy Suites, Hilton, and Hyatt—was impressive. They were able to suggest best practices that, once adopted, produced remarkable results. Avendra reps also got very hands-on in helping all the new properties get enrolled. They actively educated both HVMG and the respective properties on the step-by-step process of optimizing Avendra programs.”
Additionally:
“It was critical that the HVMG portfolio management team gain confidence in our new procurement partner, so we invited Avendra to participate in our annual GM conference. The Avendra team engaged with both old and new associates and earned us a lot of credibility. Additionally, they introduced several key suppliers which really helped to further the spirit of a true partnership.”
HVMG leadership also saw the value in Avendra’s intensive training program. The Avendra team held onsite implementation meetings at each full-service property and webinar training with select- service hotels to avoid surprises on launch day. A disciplined, targeted program was implemented at all HVMG properties, producing strong participation and program utilization.
How are you using Avendra’s Services?
HVMG’s previous procurement provider offered limited reporting options. Today, with Avendra, HVMG receives targeted reporting at the property level that captures important business insights. The data and analytics from Avendra are very clean and insightful, making performance against participation goals much easier to measure.
Full-service properties at HVMG draw on Avendra’s property-level Field Support and Customer Relations team, which provides reporting, product guidance and account management. The results?
“We reached our first goal of 80% compliance almost immediately, thanks to Avendra’s help during transition. We are now targeting 90% compliance—which adds up to great efficiencies. Avendra continues to help us optimize savings and profitability at each property individually—which benefits us company-wide.”