Smart Savings: How a New Tech Alliance is Reshaping Hotel Profitability

By Kenneth Walker

DURHAM, N.C. & ROCKVILLE, Md. – June 30, 2026 – In an industry grappling with rising operational costs and persistent margin pressures, the back office has become the new frontline for innovation. A landmark partnership announced today between procurement powerhouse Avendra International and hospitality tech innovator Folio is set to redefine how hotels manage their expenses, turning a long-standing compliance headache into a powerful engine for profitability.

Folio, a financial operations platform purpose-built for hospitality, has officially joined Avendra’s Preferred eProcurement Partner Network. This collaboration formalizes a growing strategic relationship, aiming to seamlessly connect hotel operators with Avendra's massive $20.5 billion in purchasing power. The alliance isn’t just about connecting two systems; it’s about fundamentally rewiring purchasing behavior to ensure the billions of dollars in negotiated savings are actually realized on the hotel’s bottom line.

The High Cost of Missed Connections

For decades, Group Purchasing Organizations (GPOs) like Avendra have been indispensable allies for hotels. By leveraging the collective buying power of thousands of properties, they negotiate superior pricing on everything from linens and cleaning supplies to food and beverage ingredients across a network of over 5,000 contracted suppliers. In theory, this should translate directly to significant cost savings. In practice, the reality is far more complex.

The gap between negotiated savings and actualized savings has long plagued the industry. This "contract compliance gap" stems from fragmented purchasing processes, outdated software, and what is commonly known as "rogue spending"—when hotel staff, from executive chefs to department managers, purchase items from non-contracted, off-program suppliers out of convenience or necessity. Traditional procurement systems, often clunky and difficult to navigate, can exacerbate the problem, making it harder for buyers to find the right product from the right supplier.

"Hotels work hard to negotiate savings through procurement programs, but those savings are only realized when buyers can easily identify the right products from the right suppliers," said Kate Adamson, CEO and Co-founder of Folio. The consequences are significant, eroding margins one off-contract purchase at a time.

The new partnership directly confronts this challenge. Early results from mutual customers have already demonstrated the potential. One major North American hotel management company, for example, saw its participation in Avendra’s programs jump by over 10% after implementing Folio across its portfolio. By simply making the contracted options the easiest ones to choose, the platform drove more on-program spend and compliant purchases than their previous system, showcasing how technology can unlock savings without renegotiating a single contract.

Bridging the Gap with Intelligent Tech

Unlike traditional procurement systems focused on transaction processing, Folio’s platform is engineered to guide behavior at the critical point of decision. It’s a philosophical shift from enforcement to empowerment, leveraging intuitive design and artificial intelligence to make compliance the path of least resistance.

"Our collaboration shows what’s possible when technology aligns with how hotel teams actually buy,” Adamson noted. The platform’s Folio Buy module, a centralized and managed marketplace, is at the heart of this integration. When a user logs in to order supplies, Avendra's contracted suppliers and preferred products are surfaced by default, complete with pre-negotiated pricing. This simple but powerful feature eliminates the guesswork and friction that often leads to off-program spending.

The innovation extends across the entire procure-to-pay lifecycle. Folio Bills uses AI to automate invoice processing, a task that can consume entire workdays. The system automatically transcribes invoice data, performs a three-way match against purchase orders and receipts, and routes approvals, with some hotels reporting it automates up to 50% of their accounts payable workload and saves teams up to 40 hours per week.

Similarly, Folio Inventory streamlines one of the most tedious back-of-house tasks. One executive chef at a Marriott Autograph Collection hotel reported that the tool "cuts count time in half," providing immediate visibility into stock levels and enabling faster, more accurate ordering. This speed translates into better cash flow management and reduced waste. The suite is rounded out by Folio Pay, which streamlines B2B payments through virtual cards, checks, and ACH, often with integrated rebates.

"Avendra has already done the hard work of negotiating strong supplier programs," Adamson added. "We're proud to collaborate with Avendra to make those programs easier to use every day."

A Power Play in a Shifting Market

The strategic alliance between Folio and Avendra represents a significant power play in the competitive hospitality tech landscape. It creates a formidable, deeply integrated solution that challenges established players like BirchStreet Systems and Fourth, which have long dominated the enterprise eProcurement space. By combining Avendra's unmatched purchasing scale with Folio’s agile, user-centric technology, the partnership offers a compelling "best of both worlds" proposition.

For Avendra, the collaboration ensures its members can more easily access and benefit from its vast supplier network. It’s a strategic move to drive value beyond just contract negotiation. "At Avendra, we give organizations the flexibility to choose an eProcurement solution that aligns with their operational goals, financial systems, and team workflows, ensuring the platform works seamlessly for them," said Jesse Messitte, Vice President of Strategy & Business Operations at Avendra International. "Folio has proven to be an exceptionally strong solution in helping mutual customers increase participation in contracted programs and realize more value from the supplier agreements Avendra offers.”

This partnership signals a broader trend: the convergence of procurement services and financial technology. As hotels demand more integrated and intelligent solutions, standalone software or service offerings are becoming less competitive. The winners will be those who can provide a holistic ecosystem that simplifies complexity, drives efficiency, and delivers measurable financial results. This alliance sets a new benchmark for what that ecosystem looks like, putting pressure on competitors to forge similar deep integrations or risk being left behind.

Procurement's Future: Resilience, Data, and Automation

This partnership arrives at a critical moment for the hospitality industry. In the post-pandemic landscape of 2026, operators face a confluence of challenges: persistent supply chain volatility, rising labor and operational costs, and an urgent need to build more resilient, data-driven organizations. The focus has sharpened intensely on operational efficiency as a key driver of profitability.

The Folio-Avendra solution is tailor-made for this new reality. By automating manual tasks, it frees up staff to focus on higher-value activities. By ensuring contract compliance, it provides a powerful lever for cost containment. And by offering a clear, centralized view of purchasing data, it empowers leaders to make smarter, more strategic decisions. This aligns perfectly with the industry-wide push toward digital transformation, where AI and machine learning are no longer novelties but essential tools for survival and growth.

As hotels navigate the complexities of the modern market, the ability to optimize every dollar of spend has become paramount. The collaboration between Folio and Avendra is more than just a new tech integration; it’s a strategic response to the industry’s most pressing needs. By making smart, compliant purchasing the default, they are not just streamlining a back-office function—they are helping to secure the financial future of hospitality operators one purchase order at a time.