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Capella Hotel Group
From Tactical To Strategic: Redefining Procurement In Luxury Hospitality
Sevar Asgarova is a procurement executive with expertise in strategic sourcing, supplier management and corporate
procurement. She specializes in optimizing procurement operations, driving cost efficiencies, building strong vendor partnerships
and leading procurement strategies that support business growth and operational excellence across the hospitality industry.
For a long time, procurement was viewed as a back office function — a necessary but largely invisible part of the business. Its mandate was simple: source products, negotiate prices, and keep costs under control. In the world of luxury hospitality, however, this perception is rapidly changing. Today, procurement sits at the intersection of quality, guest experience, brand integrity, and long-term value creation. It is, in every sense, a strategic function — and one that increasingly shapes how a brand is experienced, not just how it is run.
In ultra-luxury hospitality, procurement is not simply about purchasing. Every supplier engaged, every contract negotiated, and every product that enters a property directly reflects a brand's standards and its commitment to exceptional guest experiences. When operating luxury hotels across multiple continents, the decisions made at the procurement level have a direct impact on what a guest feels the moment they walk through the door — from the texture of the linens, to the scent in the lobby, to the quality of the audio system in a suite. None of these elements are incidental. Each is the result of a deliberate sourcing decision, made with the brand's identity in mind.
Partnerships That Strengthen Brand Delivery
One of the most significant shifts I have witnessed in this role is the move from transactional vendor relationships to true strategic partnerships. Inviting key suppliers into a hotel group's world — sharing brand vision, pipeline, and growth plans — encourages a different kind of response in return: preferential pricing structures, flexibility, and a genuine commitment to supporting new openings. This kind of partnership cannot be built overnight. It requires trust, transparency, and consistency on both sides. It also requires procurement teams to think beyond the next purchase order, and instead consider how a relationship with a given supplier might evolve over the next five, ten, or fifteen years, as a portfolio grows and brand standards mature.
Nowhere is this more evident than in the context of rapid portfolio growth. Many luxury hotel groups today are expanding across multiple brands and regions simultaneously, with new openings spanning diverse markets and timelines stretching years into the future. This level of expansion places enormous demands on the procurement function. Every new opening requires hundreds of sourcing decisions — from FF&E to operating supplies — all of which must meet brand standards, be delivered on time, and be commercially optimised. The complexity multiplies further when one considers that each new market brings its own regulatory landscape, supply chain realities, and lead times, all of which must be reconciled with a unified brand vision.
Balancing Global Standards with Local Execution
Centralisation has been a critical enabler of this kind of growth. Managing procurement from a central headquarters allows a group to consolidate spend, negotiate global agreements, and ensure brand consistency across every property, regardless of geography. A centralised approach also strengthens a group's negotiating position: suppliers recognise the scale of the relationship and are more willing to extend favourable terms, dedicated account management, and priority support during critical opening periods. At the same time, effective global procurement requires sensitivity to local markets, distribution networks, and regional regulations. The balance between global standards and local execution is one of the most important challenges procurement leaders navigate every day, and getting it right is often what distinguishes a seamless opening from a difficult one.
Deliver the day-to-day job, but have relevant projects to drive, think big and bold to transform for better the parts of the spend that are under your control.
Looking ahead, the role of procurement will only grow in strategic importance. Sustainability is becoming a non negotiable part of supplier selection, with guests, owners, and regulators alike placing increasing weight on responsible sourcing practices. Technology is transforming how tenders are managed and spend is analysed, enabling more informed decisions and greater transparency across the supply chain. And as portfolios continue to expand into new markets, the ability to move quickly and efficiently — without ever compromising on quality — will be one of the most important competitive advantages a hospitality brand can have.
Procurement, done well, is not a cost centre. It is a value driver — and in luxury hospitality, it is one of the most powerful tools available to deliver on a brand's promise, shaping the guest experience long before a guest ever arrives.
