Challenge: Rising Expenses
Based in Greenville, South Carolina, JHM Hotels is a privately held, national multi-brand hotel company, whose story is one of tremendous growth. Today, JHM Hotels manages 35 locations, more than 7,000 rooms, and has 1,500 associates across the US. The company operates top performing flags such as Hyatt, Marriott, Hilton and Starwood, and is committed to being a premier lodging company.
As JHM grew their portfolio from limited to full service hotels, Luke Finlay, CFO at JHM Hotels, together with Michael Rosen, the Company’s F&B Director, evaluated options to reduce food and supplies costs.
Solution: Leveraging Avendra’s Team of Experts and Supplier Relationships
JHM needed a strong procurement partner with the programs, people and experience to help manage the company’s operating costs. The JHM group worked with Avendra’s Implementation team to create a purchasing program customized for JHM Hotels. “The process was thorough, the team was fantastic, and our business was not interrupted,” remarked Finlay. “But by far, the best part was when we saw an immediate savings of nearly 5% on our food and beverage costs in just a few short months after implementation.”
Just three years later, JHM estimates it has saved nearly $4 Million by participating in the Avendra savings programs. It also gained a trusted partner and industry expert as well as finding constant value from Avendra’s innovative reporting technology and supplier information portal, myAvendra.
Benefits of the Avendra Partnership
- After a few months on the program, Avendra provided a cutover study that confirmed JHM had saved nearly 5% on food and beverage purchases.
- After seeing immediate compelling savings, JHM decided to participate in several more programs; and today JHM has saved over $4 Million across the board.
- A recent food optimization study for one of their Full Service properties showed savings opportunities totaling 5.9% in May 2014
- Another food optimization study at a Limited Service property showed savings opportunities totaling 3.5% in May 2014
- Switching to new office supplier yielded savings of more than 11% in 2014
- After instituting in two of its properties an oil management program provided by an Avendra supplier, JHM incurred an impressive 29-37% savings in oil utilization.
JHM Hotels benefits from a tailored procurement solution and personalized support that ultimately help keep operating costs down.
Are you ready to find out what Avendra can do for you? Fill out an information request form to learn more.