The Challenge

Like many multi-site companies, Intercontinental Hotels Group (IHG) has a complex portfolio, with properties across multiple locations. With a growing portfolio of 4600 properties in locations spanning 100 countries, IHG was finding it difficult to identify energy cost-saving opportunities across all sites. IHG needed an energy partner who could identify and deliver cost saving opportunities in demand and risk management across the pan-European portfolio. In addition, IHG wanted access to dedicated European experts to provide analysis and guidance for the various energy markets they operate across.

Our Approach

Analysis

Our in-house European team used a bespoke data-management system to analyse historical consumption data.

The team identified where energy was being consumed across all sites, and at what points in the day, therefore understanding IHG’s consumption profiles and shape.

 
 

Strategy review

Previously, IHG had no real purchasing strategy in place. They bought from the market at any given point in time, with no insight into market pricing or how the market was moving. This led to poor trading decisions, resulting in poor performance versus the market average.

The Inenco team quickly identified how energy cost savings could be achieved, by developing an integrated energy strategy that covered demand management as well as energy procurement.

Strategy execution

The team delivered regular tender and negotiation exercises as well as budget-led energy procurement in line with IHG’s appetite for risk. The European team’s expert market knowledge meant we were able to secure IHG competitive fixed price contracts across the entire group.

Additionally, the consumption profile data was analysed to identify anomalies and high consumption, inefficient sites. We then provided IHG with recommendations on how consumption could be reduced, achieving further cost and carbon savings.

 

Our Results

Our integrated, multinational strategy delivered IHG significant savings on their energy bills:

2010 – € 1,000,000
2011 – € 421,600
2012 – € 206,668
2013 – € 537,911

Having established an enduring energy partnership with IHG and following the success of our Pan-European solution, we went on to procure IHG’s energy in Germany, Austria, France, Spain, Hungary, Poland and Italy.

Find out more

If you need support with your Procurement Strategy, call us today on: 08451 46 36 26 or email us: enquiries@inenco.com