Most hotel vendor contracts auto-renew with 3–7% annual escalators and never get competitively bid. We audit the categories where that math hurts most — laundry, waste, utilities, insurance, HVAC, pest, telecom — and renegotiate or replace what's above market.
No disruption to guest experience · Built for independent and franchised hotels
For every dollar of revenue hotels added in 2024, expenses grew $1.04. That's a contracts problem, not a revenue problem. (HotStats 2025)
Two consecutive years of near-20% hikes (19.5% then 17.4%) on a category you can actually shop. (CBRE Hotels 2025)
Share of organizations that can't account for at least some active vendor contracts — auto-renewals happen in the blind spot. (World Commerce & Contracting)
In 2024, total hotel expenses above GOP rose 4.1% while revenue grew only 2.3%. Insurance jumped 17.4% after rising 19.5% the year before. Maintenance climbed 5.0%. F&B supplies rose 9.4%. Most operators responded by pressuring labor — the one cost they can't actually control without hurting service.
The place the money is actually hiding is vendor contracts. Laundry, linen, HVAC service, pest, telecom, waste and property insurance all auto-renew at 3–7% annual escalators without a bid. A single management company audited 78 properties and found GMs who hadn't renegotiated vendor contracts in four years — every one of them escalating in the background. We shop those contracts, benchmark them, and transition the ones that are above market.
We take whatever you have — P&Ls, GL exports, folders of PDFs. We organize it.
CBRE PAR/POR data, regional vendor pricing, and our own contract database.
We handle the outreach, proposals and contract redlines. You approve what moves forward.
Overlap service windows, on-site handoffs, and a single point of contact through go-live.
Owners carrying OpEx directly.
Where contract drift compounds across the group.
Needing one process to review vendor spend across the portfolio.
Between the GM and the investor, needing a defensible OpEx answer.
Most franchise agreements allow vendor choice as long as the replacement meets brand standards. We've worked around brand mandates before and will flag any category where a switch isn't viable.
We discuss fee structure on the intro call. We're not strictly contingency — that model can push auditors to recommend replacing vendors that should stay. We charge for the work and let the savings speak for themselves.
Waste and linen, almost always. Both have loose invoicing, aggressive auto-renewals, and very competitive markets. Insurance is the biggest dollar mover but takes a full renewal cycle.
Typical engagement is 45–90 days from kickoff to the first contract transition. Full portfolio audits run 3–6 months depending on size.
Take the 2-minute Savings Assessment and we'll come back to you with a tailored read on where your property likely sits versus market.