When it comes to hotel management, the procurement landscape is vast and complex. Making sense of it requires expertise and wisdom, both qualities possessed by Adam Butts, Senior VP of Procurement at Crescent Hotels & Resorts.
Butts has been in the hotel management industry for over 23 years. This prepared him for the unique challenges that Crescent has presented. As a Senior Procurement Executive, Butts looks at five different dynamics when it comes to hotels: costs, operations, risk, owner interest, and guest experience. The latter really sets the guardrails, and always has to be top-of-mind for any possible change.
“Guest experience is number one, closely followed by owner interest,” he explains. “It’s non-negotiable. Being in an industry where guest experience is king, it’s very important that we’re always making sure we don’t do anything that disrupts it. Every decision we make has to enhance the guest experience, not minimise it in any way.”
The way Butts bridges the void between his role in hotel management and the hotel guests themselves, is by putting himself in their shoes. He and his team visit hotels, train with the hotel teams, and, most importantly, stay at the hotels. “We get the experience that the guest has,” he explains. “We understand what it’s like if there’s poor quality food, or poor quality OS&E; we see that firsthand. That gives me the insight to make sure I’m putting the right details together, because in the end, a real person is going to be sleeping on that bed, turning on that lamp, and so on.”
What to prioritise, and when
Procurement in hospitality is unique. Broad, demanding, and with cost controls, operational efficiency, risk mitigation, owner interest, and guest experience to think about. The challenge is in figuring out how to prioritise those elements that are sometimes at odds with one another, and constantly fluctuating.
“It’s a balance,” says Butts. “Whatever takes priority at any given moment, we keep in the back of our minds that guest experience. So if we’re focusing on guest experience, how do we mitigate risks? If they can get something once and then can’t get it again, that’s a problem. We have to look at the health and safety of those guests. We have to look at brand protection; we have a reputation to uphold. Plus, there are cyber and data risks, both in-house and with our suppliers.
“With guest experience at number one, focusing on owners’ interests is 1A,” Butts continues. “Owners ultimately fund the asset, carry the financial risk, and measure success through ROI, asset value, and long-term performance. Procurement has to align with the owner’s goals to create immediate savings and long-term asset protection. Decisions that prioritise the lowest price over lifecycle value can increase long-term maintenance costs and reduce property value. Focusing on the owner ensures that decisions are evaluated based on the total cost of ownership, not just upfront costs.
“Owners want better return on capital invested, reduced operating expenses, and a longer lifespan for furniture, equipment, and systems. When we look at operational efficiencies, we have to balance these long-term realities of the hotel. So if there are inconsistencies, we need to be handling those as quickly as possible.”
For Butts, control is not restrictive: it’s strategic. That’s important, because while costs matter enormously, his job is still to prioritise value over price. He needs the highest possible value for the brand, the guests, and the hotel owners, which means strategic sourcing. “We have some branded hotels, but we also have boutique hotels with very specific needs,” Butts states. “In those cases, cost control is centred around long-term vendor partnerships, so that we stabilise costs and have the reliability we need.”