Hotel chains join forces in procurement venture

Rival hotel chains, Marriott and Hyatt, are to join forces to create a Web-based procurement company.

The new venture will link suppliers and buyers in the international hospitality market. The service will offer product discounts, real-time access to a supplier base and automated ordering.

With a joint annual expenditure of $5bn on hotel supplies, the new venture should make for more streamlined and efficient purchasing.

Interim management will come from both hotel groups. It is hoped the new venture will be operating in the virtual marketplace by the end of this year.

The two groups operate almost 2,000 hotels and resorts across the US but there are plans to include other hotel chains and to extend the market base in the future.