Opening a hotel in China: Purchasing

By Yoland Perras

Purchasing: HOE and IT

Hotel Operating Equipment (HOE) includes a wide range of items the hotel operator needs to make each area fully functional. Whether for the associate restaurant or all day dining venue, room amenities to kitchen utensils, HOE is bought by owning company together with the hotel purchasing team.

Process

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Based on an agreed supplier list between the owning company and the hotel operator, a minimum of three samples will be collected by the hotel purchasing team, pre-screened by the hotel operating team, and then together with GM, final decisions will be made. In most cases we receive more than six samples from various suppliers. The more the better, as it gives you an opportunity to see new trends, shapes and styles. In one of my previous assignments, I remember having to choose from 12 different Banquet chairs, 25 different style of Hollowware etc…

There are some instances, like IT programs and hardware, engineering equipment, brands specific systems, where only one supplier is available. For these unique items, the hotel needs to provide supporting documents, explanations and certification. With most companies, these are considered mandatory for brand compliance. No derivatives can be accepted by the hotel operator.  

Owners, having set-up their own purchasing team, will then receive from the hotel purchasing team, specifications, including the company's nrand standards, colours and quantity. The owning company will then make bids and accordingly to the HOE submitted, negotiate pricing, the down payment, and time of delivery directly with suppliers.   

Purchasing: Limo and Coaster required for covering guests' transportation needs to and from the airport, train station, and city location.

Process

Together with my Director of Rooms, Hotel and Purchasing Manager, we visited dealers, and chose the colour, focusing on specifications and features that will wow the guests. We also discussed upcoming new features that may come in the course of the year.

Such features as warm back seats, sun shades, Wi-Fi and Bluetooth are important for today's travelers who never stop being connected wherever they go. During my search, I only sat in the back to experience all the gadgets that were available for each brand as if I was a guest. Although seating in the front is nice, it is not where you will feel the guest experience. Bring your laptop, bring your business jacket, ensure you can charge your phone after a long trip – these are the areas you concern yourself with when making a selection. Driving is secondary.

For security reasons, Bluetooth connections are a must for drivers to answer the phone and to communicate with the Hotel Guest Service Manager who will meet up with the guest upon arrival. No hand phone is to be used while driving.

As mentioned to the owning company's purchasing team, when selecting a specific brand of limo, we chosed based on guest's expectations, comfort and needs, and not on personal preferences. So it is for all items.

Purchasing – Guest room linens, bath towels for rooms, as well as towels for the gym and spa (different than room's linen)

Process

Suppliers send samples base on the company's specifications, style and standards.

Example: Bath Towels

Size: 69 x 137cm

Total weight: 643gms

100% combed cotton; locked stitched hems; herringbone banding, plain border; single loop construction; white

For consistency, brand specifications are a must for any supplier to proceed in providing you with the quality you need to respect your company's brand standards.

As each supplier uses different providers, you will need to feel, soak, pre-wash, wash, and tumble dry your linen to ensure their quality and those operations need to be repeated at least five times.

Most suppliers will try to convince you that they are the best available option on the market, yet it is always recommended to exercise caution and implement a strict review before buying volume items.

In the case of bath towels, the initial buying quantity for opening my property is close to 5,000. Add the face towel, bath mat, spa, pool towels etc., and the quantity reaches close to 15,000 items. If you make a mistake, that will cost you enormously and for a long period.

There is nothing worse than a towel that's primary function is to dry your skin and take away moisture, but it simply traps it between the fluffy fibers and then moves that water around on your skin without proper absorption. So often you will hear or read negative comments on such an important and most basic guest experience.

Therefore, sampling, trying and confirming prior to buying is a critical step and must not be tampered with. This goes for all items on your HOE list.

About the author

Yoland Perras is the General Manager at the Sheraton Wuhan Hankou Hotel. His series of articles brings ehotelier readers a first-hand account of what it's like opening a hotel in China.

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