Inventory Isn’t Just a Back-of-House Problem — It’s an Industry Opportunity | By Corey McCarthy

Hotel operators know how to manage tight margins. We optimize labor. We track guest satisfaction. We adopt systems that help us stay agile across brands, properties, and markets. But there’s one area most hotels still manage like it’s 1995 — and it's quietly costing the industry millions.

That area is inventory.

And I don’t just mean the linens and lightbulbs. I’m talking about every reusable item, every critical supply, every part that keeps a hotel running. From cribs and air purifiers to tools, banquet gear, first aid kits, and back-of-house assets, inventory is the connective tissue of hotel execution. But too often, we manage it with spreadsheets, radios, or worse — gut instinct.

The Silent Cost That Never Hits the P&L

Inventory issues rarely show up as a line item. They show up in delayed room turnover, in staff walking floors looking for a rollaway, in guests waiting too long for towels that were “in stock” but unfindable. They show up in overnight purchases, in lost upsell opportunities, and in write-offs no one audits.

That’s the problem: inventory mismanagement erodes performance without setting off alarms. It affects staff productivity, operational consistency, brand standards, and even compliance. And yet, it remains one of the least modernized areas in hotel operations.

Labor Is Optimized. Scheduling Is Smart. So Why Is Inventory Still Manual?

Over the past decade, hotels have embraced workforce management, task automation, and predictive analytics. We forecast labor with AI. We optimize scheduling down to the shift. We manage guest feedback with real-time dashboards.

But when it comes to inventory, we still rely on:

• Verbal checkouts
• Whiteboards in engineering closets
• Departmental stockpiles
• Email threads and “just in case” ordering

It’s a weak link — and one that’s only getting weaker as service expectations climb, operating costs rise, and margins get tighter.

Inventory Visibility Is the Next Operational Frontier

If hospitality wants to operate with the precision of world-class logistics companies, we need to treat inventory as a strategic function, not a back-office task.

That means giving teams real-time insight into what’s available, where it’s located, and how it’s being used. It means connecting inventory to preventive maintenance, service recovery, housekeeping execution, and even upselling. And it means recognizing that every missing item isn’t just an inconvenience — it’s a lost moment of trust.

The good news? The technology exists. The processes are proven. And the operators who adopt them now will be the ones who grow most efficiently in the years ahead.

Inventory Isn’t Just a Supply Chain Issue — It’s an Execution Multiplier

Inventory impacts nearly every KPI that hotel leaders care about — just indirectly. Want faster task completion? Supplies need to be in the right place. Want better guest satisfaction scores? Amenities must be stocked, tracked, and delivered without delay. Want to improve NOI? You need to avoid wasteful reordering and overtime labor triggered by inventory slowdowns.

When you fix inventory, you don't just get better control of supplies — you unlock better performance across departments.

And most importantly, inventory is one of the few areas where a modest process change can create measurable returns without increasing headcount or tech stack complexity.

Where to Start: 4 Smart Inventory Questions Every Hotel Should Ask

If you're not sure whether inventory is costing your team time, money, or trust, start here:

1. How many times last month did your team make an unplanned purchase?
   If you can't answer that, you're not tracking it — and that’s already a cost center.

1. Do you know where every reusable guest item is right now — and who used it last?
   If the answer is “not really,” that’s not a people problem — it’s a visibility problem.

1. When was the last time a missing supply caused a service delay or review issue?
   If you’ve heard “we’re out” more than once this month, you’re not alone — but you are vulnerable.

1. Is your inventory data centralized and accessible by multiple departments?
   If not, your team is likely duplicating effort, reordering unnecessarily, or working around the system altogether.

Answering these won’t fix the problem — but it will shine a light on how big the gap actually is. And from there, you can build a smarter, faster, and more resilient operation.

It’s Time to Bring Inventory Into the 21st Century

Inventory management in hospitality isn’t about shelf counts or procurement workflows — it’s about enabling the speed, responsiveness, and consistency modern hotels are expected to deliver.

We’ve already optimized our people.
We’ve digitized our guest experience.
Now it’s time to modernize the systems that support both.