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How HEI Hotels + Resorts Uses Data-Driven Procurement with Avendra International to Improve Quality and Reduce Costs

Key Takeaways for Hotel Operators

Data‑Driven Procurement Creates Measurable Value: HEI Hotels + Resorts leverages Avendra International’s analytics, category expertise, and procurement platforms to make smarter purchasing decisions that enhance both cost efficiency and guest satisfaction.
Standardization Unlocks Unexpected Savings: By using Avendra International’s insights to compare purchasing patterns across properties, HEI identified surprising cost‑saving opportunities—such as switching to a higher‑quality toilet paper that ultimately saved the organization $98,000 annually.
Technology and Partnership Drive Portfolio‑Wide Optimization: Avendra International’s platforms, including iBuyEfficient and Mosaic Supply Chain AI, provide real‑time visibility and customization that help HEI streamline operations, reduce food costs, simplify deliveries, and maintain strong brand standards.

For over four decades, HEI Hotels + Resorts has established itself as a premier privately held hotel investment and third-party management company. With a portfolio exceeding 100 properties, HEI’s sustained success is rooted in a disciplined, analytics-driven approach to operations and a commitment to delivering exceptional guest experiences.

A critical component of this success has been its 20-year strategic collaboration with Avendra International, a global leader in professional procurement services.

From the beginning, HEI and Avendra International have worked hand-in-hand to ensure that every procurement decision supports both operational efficiency and guest satisfaction. Our shared philosophy is simple but powerful: find the right products, for the right environments, at the right price.

Edge Magazine sat down with Michael Barnes, Vice President of Real Estate Operations at HEI Hotels + Resorts, to learn how Avendra International helps the organization find success through data-driven procurement decisions.

A Trusted Guide in a Complex Landscape

Prior to joining HEI 14 years ago, Michael’s background spanned business, finance, and real estate—not hospitality. He credits his Avendra International representative with guiding him through the complexities of hospitality procurement, including the navigation of vendor agreements, regulatory compliance, and brand standardization.

“When we transitioned to large-format amenities, Avendra International was instrumental,” says Michael. “They understood our brand requirements and the regulatory landscape across different states, helping us implement the right solutions portfolio-wide.”

Savings Where You Least Expect It

At HEI Hotels + Resorts, maximizing portfolio value means listening to both data and guest feedback.

“We’re very analytical in our approach,” says Michael. “But it’s not just about the numbers. We actively listen to our guests to let us know if we are truly buying the right products for their needs.”

One of the most surprising examples of data-driven savings came from an unexpected category: toilet paper.

A review of purchasing data revealed that HEI’s luxury properties were using a premium 2-ply product sourced through Avendra International at a competitive price. Meanwhile, other hotels were independently buying lower-quality alternatives, assuming they were saving money.

“When we ran the numbers, we discovered that switching all properties to the higher-quality product through Avendra International would save us $98,000 annually,” Michael explains. “It’s a win-win: better quality for guests and immediate savings across the portfolio.”

Optimizing Food & Beverage Procurement

With nearly 50% of HEI’s portfolio revenue tied to Food and Beverage, procurement efficiency in this area is paramount. That’s where Avendra International’s Master Food Distributors (MFD) contract comes in.

“We’ve been able to streamline our procurement operations with fewer deliveries and fuller trucks,” says Michael. “Larger delivery sizes help us leverage a lower markup with our MFD partner, resulting in greater savings and, ultimately, lower food costs.”

Technology That Powers Transparency

HEI has fully embraced Avendra International’s eprocurement platform, iBuyEfficient, mandating its use across 100% of its properties. The platform integrates seamlessly with HEI’s commercial and proprietary systems, offering real-time visibility into purchasing patterns and savings opportunities.

“Its infrastructure allows us to customize what we really need,” he says. “We’re also dipping a toe in the water with Avendra’s new platform, Mosaic Supply Chain AI, to explore real-time data insights. We’re excited about the possibilities as the platform matures.”

A Relationship That Delivers Results

“Candidly, this is the relationship I want,” says Michael. “Avendra International consistently brings forward new ideas and solutions, and their alignment with our brand standards makes them an invaluable partner.”

Strategic procurement is more than just cost savings—it’s about enabling exceptional guest experiences through smart, data-informed decisions that align with client goals. Let us help you unlock value across your portfolio.

We get it, and we can help.

HOW HEI HOTELS + RESORTS USES DATA-DRIVEN PROCUREMENT WITH AVENDRA INTERNATIONAL TO IMPROVE QUALITY AND REDUCE COSTS

FAQs

How does Avendra International support HEI’s procurement strategy?

Avendra International provides category expertise, data analytics, and technology that help HEI make informed, efficient purchasing decisions. Their guidance ensures HEI selects the right products at the right price while meeting regulatory and brand requirements.

What specific savings has HEI achieved through Avendra International?

One example is the switch to a higher‑quality, competitively priced 2‑ply toilet paper sourced through Avendra International, which resulted in $98,000 in annual savings. Additional savings come from streamlined food and beverage procurement through Avendra’s Master Food Distributor program.

What procurement technologies does HEI use today?

HEI uses Avendra International’s iBuyEfficient platform across 100% of its properties for purchasing transparency and reporting. The company is also exploring Mosaic Supply Chain AI for enhanced real‑time insights as the platform evolves.