Major Private-Equity Backed Hotel Group

Turning rapid growth into sustainable margin improvement

The challenge

The group had grown rapidly but recognised that it was becoming increasingly inefficient as it expanded.

It needed to understand why greater scale was bringing greater complexity, and how to turn that scale into commercial advantage.

Our approach

We helped the group establish that its procurement capability had not kept pace with its growth. The opportunity extended beyond day-to-day hotel operations to the capital invested in refurbishments and new openings.

Drawing on our market knowledge, we quantified the scale of the opportunity and demonstrated its potential impact on operating margins and return on investment. This gave the leadership team a clear commercial basis for action across both operating and capital expenditure.

We then worked with the group to capture savings in the short term, before helping it design and build a procurement operating model suited to its scale and ambitions.

The outcome

The group captured short-term cost savings and built the internal capability to sustain the improvements with our support. The operating model we proposed equipped its teams to identify, deliver and maintain further savings themselves as the business continued to grow.