Supporting Growth Across a Multi-Brand Hotel Portfolio
The Context
Molo Hotel Group operated a growing portfolio of hospitality assets across multiple brands and market segments. In 2023, the group developed three new hotel properties and wanted to use the expansion to improve supplier terms and mitigate the impact of inflationary pressures.
One Cost's role was to deliver quick cost savings with minimal disruption to day-to-day operations, with consideration for sustainability and local sourcing where appropriate. The established supply chain needed to accommodate the group's existing sites, ranging from Holiday Inn Express properties to Vignette Collection hotels, while remaining adaptable to support future openings.
Our Approach
A review was conducted across six hotels, identifying food and liquor GP as a key priority. Rather than replacing incumbent suppliers, commercial agreements with existing suppliers were renegotiated to reduce costs, secure additional brand owner support and introduce greater flexibility to change beverage brands without contractual penalties.
Six-month price reviews were implemented alongside monthly monitoring of market-sensitive product lines to respond to seasonal pricing and availability. Where local sourcing was suitable, fresh produce suppliers and butchers were selected to meet the specific needs of each hotel.
Incumbent laundry suppliers were also retained, with contract terms renegotiated to reduce costs and minimise future annual price increases.
One Cost assumed day-to-day management of key supplier relationships, introducing local account management in place of a head-office-only approach. This provided hotels with direct operational support and faster resolution of site-level issues.
Accurate product catalogues and pricing were maintained within the client's purchase-to-pay (P2P) system through close collaboration with suppliers. Ongoing oversight of price files against agreed service levels reduced administrative workload, streamlined product acceptance processes and minimised disruption when pricing changed.
The Ongoing Impact
Data from the P2P system and Handling Data are used to monitor both group-wide and site-specific KPIs. Areas for improvement are identified and discussed with the internal teams to develop targeted actions and track performance against agreed objectives.
The pricing infrastructure and account management now in place allow new hotels to be integrated into existing procurement arrangements from the outset.
Working with One Cost has been a genuine pleasure. They understood our brief from the very outset. We're not 'one cap fits all' operators — we run a real mix of hotels — and we've never been about chasing the cheapest product on the shelf. We want the right product to suit each part of our business, and One Cost grasped that distinction immediately.
Rather than sweeping in and tearing up the supplier relationships we'd spent years building, the team took the time to understand each site, then renegotiated the agreements we already had — taking real cost out fast, with barely a ripple across our teams on the ground, and giving us the flexibility to adapt suppliers and products as our needs change. From fresh produce and meat through to drinks, quality and fit have never taken a back seat to price.
They swapped a distant, head-office-only relationship for local account management, and it's made all the difference — our hotels now have someone who knows them, answers quickly, and genuinely cares about getting things right at site level.
Their support as we've opened new hotels has been absolutely invaluable. Bringing a new property online is a demanding time, and having One Cost there — with the pricing and P2P infrastructure already in place so each hotel can slot straight into our arrangements from day one — has taken real pressure off our teams and let us open with confidence.
How Our Team Can Support Yours
We possess the systems, data and expertise needed to embed structured procurement processes within your business. Whether the focus is improving gross profit, enhancing operational efficiency, or ensuring consistency across spend, we work with you to achieve your KPIs.
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