IHG Hotels & Resorts (IHG), is continuing to evolve its global procurement capabilities through a multi-phase digital transformation strategy, complemented by enhancements to the tools and communication channels available to hotel owners. This dual-track approach reflects IHG’s ongoing efforts to improve the procurement experience in ways that aim to be more efficient, transparent, and responsive to the needs of its franchisees and managed hotels.

With the complex and dynamic operating environment facing the hospitality industry, including cost pressures from rising labor expenses, supply chain volatility, and shifting demand patterns, IHG Global Procurement is focused on trying to develop scalable, practical solutions intended to support operational continuity, cost management, and informed decision-making by hotel owners.

 

Enhancing Procurement Through Digital Enablement

A key milestone in IHG’s ongoing transformation efforts is the introduction of IHG SYNC, a global source-to-contract platform launched in 2024. The platform is intended to help unify procurement workflows, enhance data visibility, and support more consistent supplier engagement across regions.

“Our digital transformation is not just about improving internal systems; it’s about creating a procurement experience that’s simpler, faster, and better for our suppliers and our hotel owners,” said Sopan Shah, SVP and Global Chief Procurement Officer.

Complementing IHG SYNC is this redesigned procurement website, which now includes multilingual functionality and improved navigation for easier access to procurement resources.

 

Strengthening Owner Communication

IHG Global Procurement is committed to maintaining open, transparent, and timely communication with hotel owners. Through a variety of channels, including the Hotel Bulletin, owner webinars, and the centralized Hotel Dashboard, owners receive regular updates on supply chain developments, product availability, and new program offerings. The Hotel Dashboard, accessible via Merlin login, serves as a central hub for procurement-related resources, including standard operating procedures (SOPs), supplier information, and supply chain updates.

Given the ongoing volatility in global supply chains and fluctuating market conditions, consistent communication is more important than ever. IHG’s Global Procurement team is available to support owners with supplier-related queries, product sourcing challenges, or program-related questions.

 

Regional Program Expansion

IHG Global Procurement is also continuing to develop and expand regional support programs to help address market-specific needs.

In the UK and Ireland, the IHG Procurement Program has seen increased participation since its launch in early 2023. Hotels enrolled in the program have access to pre-agreed pricing with over 100 suppliers across food, non-food, and FF&E categories. Some participating properties have reported average savings of approximately 13% on selected food and beverage products. The program is designed to be flexible and compatible with a variety of procurement systems to support ease of adoption. A similar initiative is currently in development for Germany, with a launch anticipated later in 2025.

In Canada and the MLAC region, IHG has introduced new leadership and supplier engagement efforts aimed at addressing local sourcing challenges and improving access to cost-effective goods and services.

In the United States, the FF&E Replenishment Program for Holiday Inn Express properties enables participating hotels to order in-stock items without minimum order quantities. This approach is intended to help reduce lead times and freight costs. Additionally, a new utilities management program is being introduced to support energy expense tracking and facilitate automated reporting into IHG’s Green Engage platform.

 

Overview of Services

The organization remains focused on providing practical support to hotel owners across all stages of the ownership lifecycle. From new builds and conversions to ongoing operations and property improvement plans (PIPs), IHG Global Procurement offers a range of services intended to help simplify sourcing, support cost management, and help maintain brand standards.

Through initiatives such as Hotel Purchasing Services (HPS), owners may access experienced purchasing agents, centralized pricing on FF&E, and logistics support to help streamline project timelines. IHG Global Procurement also has negotiated contracts with pricing and commercial terms on BMPs, with rates reviewed by IHG’s category management team and third-party auditors to help ensure continued value.

Aligned with IHG’s Journey to Tomorrow responsible business plan, the procurement function also promotes sustainable sourcing practices. By leveraging the scale of more than 6,000 IHG-branded hotels, the team works with over 200 vetted suppliers globally to help secure cost-effective pricing and manage supply chain risk. Whether supporting a new build, a brand conversion, or a PIP, IHG Global Procurement aims to deliver consistent, end-to-end solutions that help to support hotel owners in operating efficiently and effectively.

 

As IHG Global Procurement evolves, the focus remains on delivering a procurement experience that is not only digitally enabled but also deeply aligned with the needs of hotel owners. With foundational tools like IHG SYNC, expanded regional programs, and enhanced communication platforms already in place, the team is positioned to build on this momentum.

“The journey is just beginning,” said Sopan Shah. “Over the course of 2025, one of the overarching goals for IHG Global Procurement is to undergo digital enablement to ensure we provide an improved experience for owners. Now that we’ve laid the groundwork for engagement, we’re committed to pushing further in 2025 to ensure our owners understand how the IHG Procurement Program can provide the value they need, the support they want and the quality their guests expect.”