Independent Hotel Group

LSI assist a family run hotel business to control their energy expenditure

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AB Hotels

Family run hotel business

Description

AB Hotels is a family run business and the group is made up of three hotels: Sopwell House near St Albans / Crown Plaza Resort Colchester Five Lakes near Maldon, Essex / The Arch London, located in the heart of Marylebone. 

LSI has supported the AB group for 3-years, providing management of Procurement, Invoice Validation and ESOS Compliance.

Action

Procurement

All AB hotels are large users of both gas and electricity. At their last renewal AB Hotels decided to move away from the brokerage market and run the full tender process themselves. Although they were able to achieve a price that was competitive on a 12-month contract, the project was fraught with problems.

The registration process was neither smooth or quick and it was a time consuming process for the AB Hotels administrations team. LSI were not officially instructed at this time, however due to the issues being faced LSI was on hand to assist the AB Hotels team in unpicking the registration issues with the suppliers and ensured the customer was compensated for any out of contract rates that were imposed.

At the end of that contract AB Hotels came back to LSI with the challenge of negotiating better prices. Having gone to market and handling the procurement process LSI was successful in the negotiations and were awarded the business moving forward.

Invoice Validation

AB hotels engage with LSI to undertake Invoice Validation on all supplier invoices for the three hotels within the group. LSI run a robust system which checks and verifies every bill received on a monthly basis.

The results are then reported back to AB Hotels so that they are able to pay invoices.

This service benefits AB Hotels as they know that their invoices are being check by industry experts who are able to find the smallest of discrepancies within a bill. It also allows the in house accounts team to focus on their core business.

Energy Saving Opportunity Scheme (ESOS)

ESOS is a mandatory scheme introduced by the Environment Agency and DEFRA for larger commercial business. By virtue of its size AB Hotels were in scope and had to report on its energy and transport usage.

The scheme was fairly rigid in regards to the data it needed reporting. For this reason the guidelines effectively stated that businesses needed a professional to undertake the full process in order to pass compliance.

AB Hotels decided that rather than undergoing the complex process alone, they would engage with LSI to undertake the project. LSI has an experienced Energy Management and Sustainability team who assist with the entire ESOS process from auditing and reporting to finalising the compliance paperwork.

The ESOS report highlights any areas for improvement in energy reduction/management. As a result of the reports, Sopwell House had new meters installed within their kitchens. The aim was to create a cost centre internally so that the catering staff were made aware of the cost implications of kitchen and the impact on the bottom line. This was done with a view to making the staff more conscious of their actions and hopefully encourage them to use the equipment more wisely.

Result

“AB Hotels have worked with LSI Energy over the past three years. Our business with LSI has increased over time, starting with invoice validation, adding more recently ESOS submissions & partnering AB Hotels in contract tendering.

“We have always found the team at LSI responsive and professional in all matters and are pleased to recommend their services.”

Nicholas Smith, Group Purchasing Manager, AB Hotels

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