Volatility in FF&E pricing, shifting tariffs and rising material costs are reshaping how owners approach procurement, and where they are finding savings. Hotel Business caught up with Jacob Fruth, managing principal, Aintree; Carl Long, president/CEO, Purchasing Management International; and Kendra Raines, principal, KBK Procurement, to understand how hotels are managing these pressures.
—Gregg Wallis
With costs rising, what purchasing challenges are hotels facing—and how are they saving?
Fruth: With project-focused procurement, there is a definitive need date of product. Balancing costs with project timelines is one of the bigger challenges owners and developers are now facing. With adequate support, we’ve been able to guide owners on when and where to place orders to mitigate inflationary and tariff risks.
Long: The biggest challenge right now is volatility in the FF&E pricing. This is obviously related to the continually changing tariffs. The uncertainty around the delivered costs of FF&E delays decision making for some projects or reduces the scope because funds that could be put into product now have to be allocated for paying tariffs. The way forward has been smarter planning and deeper vendor engagement. Owners who involve purchasing professionals early are saving time and money because they have better visibility into pricing trends and global hospitality manufacturing. We are helping clients look several steps ahead, developing sourcing strategies that balance global and domestic production, so projects stay on track even when markets shift.
Raines: Hotels are facing an increasingly complex cost landscape driven by tariffs, freight volatility and ongoing material shortages. Many owners are realizing that traditional lowest-bid purchasing often results in long-term overpayment once freight, delays and quality issues are factored in. At KBK Procurement, we focus on total project value, not just the line-item cost. Through early sourcing, vendor transparency and strategic freight consolidation, we routinely help owners save 12%-18% on their FF&E budgets while maintaining design integrity. The key is proactive procurement planning and clear communication across design, ownership and vendor teams.
Which product categories or trends are driving hotel purchasing?
Fruth: Hotels are attempting to differentiate themselves with custom designs, specifically with wallcovering and furniture designs. We are seeing an increased interest in specialty wallcovering and fabrics that elevate a space or piece of furniture. The guestroom itself is being rethought by focusing on what is necessary for guests’ convenience and use. This is driven by the desire to leave the guest with a lasting impression of their hotel stay.
Long: Hotels are looking for products that meet the design requirements but also hold up over time and deliver long-term value. The product category story is really a story of brand bifurcation. The higher-end hotels lean into the integration of materials and products into a cohesive design. The limited-service or brand-standard type of hotels lean into the brand standards and rely on the large brands to drive value into the required products. We have also seen a push for more domestic manufacturing. This has been going on for a while and has accelerated due to the increased costs and volatility related to tariffs.
Raines: Multifunctional and sustainable products are leading the way. We’re seeing strong demand for modular casegoods; performance fabrics that meet both brand standards and local durability needs; and lighting with integrated USB and smart control options. On the OS&E side, energy-efficient small appliances and eco-friendly guestroom amenities are driving interest. Owners are also prioritizing U.S.-based or North American manufacturing partners to reduce lead times and freight exposure, a trend that’s here to stay.
How is technology reshaping hotel procurement and supply management?
Fruth: Technology is freeing up time by automating some of the processes and just making them more efficient. With that time, we are now able to build upon our existing relationships by adding new sources for product categories and deep dive into evaluating bids to ensure ownership groups are receiving the best value to achieve their project goals.
Long: We talk regularly about how AI is going to fundamentally change the FF&E purchasing business. Technology has brought speed to a process that used to rely heavily on paper trails and phone calls. Our teams now use integrated purchasing systems that track everything to provide visibility into the purchasing process and keep everyone aligned with the project goals. We can spot delays before they become problems, compare sourcing options quickly and keep the entire team informed. We are using technology more than ever as a tool to increase our efficiency and to supplement the creative problem solving required for hospitality purchasing.
Raines: Technology has become the bridge between design intent and operational reality. From digital submittals and live vendor tracking to AI-assisted budgeting and automated purchase order workflows, procurement is no longer just about buying, it’s about data visibility. At KBK, we integrate technology to forecast lead times, flag vendor delays and track payments in real time, giving owners the transparency they deserve. This digital shift allows procurement agents to focus less on chasing paperwork and more on strategic decision-making that drives savings and performance.
What do you see as the next big shift in how hotels approach purchasing?
Fruth: Project procurement companies are going to be brought into the hotel development process much earlier. And there is going to be greater expectations to provide relevant information to ensure projects are completed on time and on budget.
Long: The next big shift is going to center around the intersection between technology and human problem solving. In a prescriptive brand standard environment, owners will be able to use more efficient methods of purchasing those standard products, either through brand purchasing departments or through turnkey vendors. Those companies that provide purchasing services exclusively in that brand standard environment will be challenged to provide added value to owners. In the upscale custom-designed projects, there has been a flight to quality and stability in purchasing services that will continue. Smart owners working on luxury projects understand that purchasing services for FF&E is more than simply placing orders.
Raines: The next evolution will be relationship-based procurement, where owners and procurement agents operate as long-term strategic partners rather than one-time buyers. Hotels are realizing the value of continuity: consistent pricing models, vendor reliability and lessons learned that carry from one project to the next. I also expect to see greater integration between procurement, design and project management software, creating a single ecosystem where every stakeholder has access to the same live data. That level of transparency and collaboration will redefine how projects are delivered.
How are you helping hotels balance design appeal, quality and long-term value in what they buy?
Fruth: Through supplier networks, we source products that maintain the design intent, meet performance standards whether dictated by the client or brand and accomplishes the end goal of putting heads in beds. We are part of a larger team and working with them to achieve the desired outcomes through transparent communication has enabled our projects to be a success.
Long: This has been the continual push within the hospitality industry. To achieve that balance, we must start with a well-written specification that is buyable and biddable. We train our staff to review specifications in collaboration with the interior design team to make sure that their design intent is accurately communicated, and the important details are specified. Through our sourcing and bidding efforts, we then show owners the differences in cost, quality and product lifetime. That analysis empowers owners to thoroughly evaluate where they put their project dollars and make informed decisions for their projects.
Raines: Every purchase decision is a balance of form, function and fiscal responsibility. Our approach is to align early with the design team to understand the visual story, then source alternatives that achieve the same aesthetic at a smarter value point. We benchmark each specification against life cycle cost, warranty and replacement risk. That’s how we ensure our clients aren’t just opening a beautiful hotel—they are building one that performs for years. True procurement success is when design vision and financial stewardship coexist seamlessly.
