Scaling Up Successfully

WHEN A COMPANY EXPERIENCES PHENOMENAL GROWTH, THEY MUST BE DOING SOMETHING RIGHT. Sonesta’s excellent reputation, along with its acquisition of Red Lion Hotels, drove its explosive expansion over the past five years. But the company’s transformation from a boutique hotel business to a major international presence put a glaring spotlight on areas of operation that were simply overwhelmed. Procurement management, which had gone unchanged for decades, was one. The needs of the company had far outgrown the resources of the department.

So, Sonesta’s EVP of Franchise Development Keith Pearce introduced the company’s executive team to Paul Davis of CORE Insights Group. Familiar with Davis’s successful track record in the industry, Pierce believed CORE would bring practical advice and support to help them quickly get their operations back on track.

The CORE team responded by listening to Sonesta’s concerns, identifying key areas for improvement, and creating a roadmap to help them scale up their operations to match their growth. Then they rolled up their sleeves and got to work in a collaborative effort to resolve Sonesta’s most pressing issues.

“It became apparent that the company’s needs were much broader than we initially thought, but our unique interactive approach and flexible business model enabled us to match our resources and align our services to our client’s specific situation,” Paul Davis recalls. “We don’t just identify challenged areas and leave a list of recommendations. We stay to help implement those recommendations and build a support system for long-term success.”

The first order of business was to secure well-negotiated purchasing contracts on behalf of Sonesta. The company had very few agreements in place, leaving it exposed to legal risks and vulnerable to cost issues with supplies and availability. By negotiating with their supplier resources, CORE was able to save Sonesta over $1 million without sacrificing the quality their customers appreciate. The savings and added value from the contracts helped secure the newly established relationship with CORE.

Then, CORE Insights Group helped Sonesta build a robust technology infrastructure for procurement, to support streamlined procedures, delivering time savings and consistency across properties. Since part of Sonesta’s growth came from the acquisition of Red Lion Hotels in 2021, integrating the two companies’ supply chains was another challenge CORE took on. “We helped them develop a strategy that integrates the requirements of a managed portfolio and a franchise organization,” says Paul.

CORE offered access to experienced procurement resources who provided the precise level of support needed for each situation and phase of business. This customer-centric approach has allowed CORE Insights Group to build strong relationships with clients, who trust them to provide transparent and net-positive solutions that deliver results.

“CORE’s team of experienced industry executives managed the initiative; built the strategic roadmap; developed, designed and implemented processes; identified required sourcing and contracting technology; led the renegotiation of our GPO agreement; and helped source and recruit highly experienced and capable individuals to join the procurement team,” says Shawn Cryan, Sonesta’s SVP-Corporate Strategy.

CORE’s team has become a cost-effective extension of Sonesta’s procurement department, working with employees and the executive team to develop improvements and future-proof the company’s operations. The continuing Sonesta-CORE relationship is a testament to the power of collaboration and the value of enlisting experienced resources when faced with business-critical change.