HSM 2023 Supplier Diversity Annual Report

SUPPLIERDIVERSITY

WHO WE ARE

HSM is the world’s leading hospitality procurement, logistics and end-to-end supply chain provider, connecting 17,000+ properties around the globe with the products, programs and support to grow their businesses.

Our customers benefit from our strategic partnerships, best-in-class supply chain expertise, rigorous sourcing events and $12B in purchasing power coupled with our commitment to uplift the small and diverse businesses.

To date, HSM has established relationships with more than 2,200+ diverse suppliers, adding 113 new partners to our network in 2023.

OUR COMMITMENT TO DIVERSITY & INCLUSION

Last year was a time of learning, innovation and growth for both our industry and HSM. We were proud to grow our supplier network, expand access to affordable capital to help our suppliers scale their businesses, and launch Source with Purpose— an all-encompassing enterprise-wide initiative—to advance positive impact across the supply chain.

We know a more diverse Hilton means a stronger Hilton, and we seized many opportunities last year to expand our focus on diverse suppliers while extending the reach of our customers. From entering into contracts with large diverse supplier partners such as Sobel Westex and Partake Foods, to global imperatives, including our 47% year-over-year increase in diverse spend, HSM leverages our Supplier Diversity Program to forge strategic partnerships, offer educational events, share industry insights and connect businesses with valuable resources to support their growth.

HSM’s award-winning Supplier Diversity Program is the cornerstone of our commitment to engage individuals from all cultures, communities and walks of life. Since the program’s inception, we have helped affect lasting positive change for more than 2,400+ small, disadvantaged or minority-, veteran-, LGBTQ-, women- and disability-owned businesses. In 2023, our supplier spend with these valued partners exceeded $467 million.

SOURCE WITH PURPOSE ADVANCING POSITIVE IMPACT ACROSS SUPPLY CHAINS

Launched in 2023, Source with Purpose is HSM’s global strategy to advance positive impact across supply chains.

Through Source with Purpose, we adopt necessary practices and build lasting connections to promote responsible, sustainable and inclusive sourcing both within and beyond our industry.

By aligning with manufacturers, distributors and suppliers who are equally committed to this mission, we are fast-tracking our progress toward Hilton’s 2030 Travel with Purpose goals—including our commitment to double sourcing spend from small and diverse suppliers.

Responsible

Due Diligence

Human Rights

Animal Welfare

Sustainable

GHG Emissions

Waste Reduction

Product Materials

Inclusive

Supplier Equity

Local Sourcing

Education & Development

BRIDGING THE EQUITY GAP

In 2023, Hilton and HSM developed an industry-first partnership with Bridge (a Foro Holdings company) to create easier access to affordable capital.

A first-of-its-kind in the hospitality industry, the Bridge program represents an essential step toward broadening access, simplifying the loan search and connecting our suppliers with the capital support needed to scale their businesses.

Hospitality is a powerful engine of opportunity for entrepreneurs dreaming of owning—and growing—their own businesses, and we are excited about the potential of this program to support our U.S. supplier partners in growing their businesses and creating a more inclusive global supply chain.

2023 YEAR IN REVIEW PROGRAM HIGHLIGHTS

For small, diverse and disadvantaged businesses, meeting these suppliers where they are is often integral to their success. That’s why our Supplier Diversity Program reflects a range of initiatives designed to bolster the financial, educational, technological and social reach of these partners who are vital to our own success.

• Ranked #3 on Fair360’s Top 50 Companies for Supplier Diversity list

• Recognized as an NMSDC National Corporation of the Year and expanded leadership presence with a seat on the NMSDC Board of Directors

• Developed an industry-first partnership with Bridge (a Foro Holdings company) to create easier access to affordable capital

• Recognized as “Best of the Best” by the National Business Inclusion Consortium

• Completed major contracts with diverse supplier partners such as Sobel Westex and Partake Foods

• Recognized a 47% year-over-year increase in spend across our network of 2,200+ diverse suppliers

• Listed as America’s Top Corporation for Women’s Business Enterprises by WBENC

• Hosted an in-person Supplier Diversity Summit, which included a diverse supplier showcase, cross-functional panel and presentation of a $10,000 Supplier Advancement Fund grant

• Adopted modified payment terms (net 10 versus net 35) for eligible suppliers

• Offered amended insurance caps on a case-by-case basis to certified small and diverse suppliers

547 Women-owned businesses

129 (incl. DVBE) Veteran-owned businesses

412 Minority-owned businesses

10 LGBTQ-owned businesses

56 Persons with disability-owned businesses

1,808

*

**

***

4,273 Total jobs supported by Hilton Diverse Supplier Spend $568,072,155* Wages paid on those jobs

$248,042,654**

Total value added to the U.S. Gross Domestic Product (GDP)

$426,954,260*** Total economic output

PARTAKE FOODS

BACKGROUND: Founded in 2016 by Denise Woodard, inspired by her daughter’s multiple food allergies

MISSION: To make eating and sharing food deliciously worry-free for those with (and without) allergies

CERTIFICATIONS: Certified B Corp, WBE, MBE

PRODUCTS: Allergen-free, vegan and non-GMO cookies, crackers, pancake mix and waffle mix

INDUSTRY CLAIM TO FAME: First Black-owned, woman-owned CPG startup to raise $1 million

HILTON PARTNERSHIP: Developing a bespoke, allergen-friendly DoubleTree by Hilton cookie in one of our biggest brand initiatives of 2023

“We are thrilled to work with an iconic brand like DoubleTree by Hilton to create a more inclusive welcome for their guests at check-in. As a parent of a child with food allergies, I know firsthand how limited offerings are for travelers with allergies and dietary restrictions. Everyone deserves to have a sense of assurance and comfort when he or she is away from home. Partake Foods is proud to extend our mission of inclusivity to DoubleTree by Hilton hotels across the United States.”

Denise Woodard | Founder & CEO | Partake Foods

SOBEL WESTEX

BACKGROUND: A global leader in hospitality and retail textiles, established in 1981

MISSION: To enhance every hotel guest and home lifestyle experience with luxurious, long-lasting linens and textiles

CERTIFICATIONS: MBE

PRODUCTS & SERVICES: Textiles, manufacturing, design, distribution, bed linens, bath terries, robes and pillows

INDUSTRY CLAIM TO FAME: #1 linen provider to the world’s most iconic hotels and resorts

HILTON PARTNERSHIP: Named Hilton’s new primary terry supplier for the U.S. in 2023

“HSM’s unwavering support and trust have been the driving force behind the successful launch of our new towel line, which has unfolded a new chapter of luxury and comfort. With each thread woven, we are committed to excellence, delivering a touch of indulgence to every Hilton guest as we embark on a journey of relaxation together.”

Walter Pelaez | CEO | Sobel Westex

DEV10

BACKGROUND: Conceived in 2018 by two women seeking to boost the quotient of U.S.-based tech talent

MISSION: To help individuals without a computer-science degree become software developers, motivated by a belief in the unlimited potential of people

CERTIFICATIONS: DOBE

PRODUCTS & SERVICES: Tech consulting and talent development—from recruitment and aptitude testing to bootcamp-style training and ongoing support—for software and data engineers

INDUSTRY CLAIM TO FAME: After 12 months, 96% of Dev10 associates are still working with their clients—and 100% of Dev10 clients are repeat buyers

HILTON PARTNERSHIP: Offering proven tech training, innovative solutions and staffing support to IT stakeholders, helping Hilton stay future-focused in an increasingly digital world

“Hilton has an inclusive culture where our Dev10 associates thrive. What we find truly special about our partnership is the shared commitment to success. Hilton managers are present, provide comprehensive feedback and engage in consistent communication with Dev10. They create a team dynamic our associates are excited to join.”

“By collaborating with dynamic, diverse suppliers, we bring a richer, more inclusive range of products and services to the forefront of our business. Our partners’ unique perspectives resonate with our diverse clientele, enriching the stay experience while reinforcing Hilton’s position as an industry leader and champion of diversity.” Simone

Kelly Calendine | Client Director | Dev10

LODGING KIT COMPANY

BACKGROUND: Founded in 1989 by two employees, now operating three distribution centers nationwide

MISSION: To serve as a leading houseware, linen and operating supplies and equipment (OS&E) supplier to the lodging industry

CERTIFICATIONS: VBE, SBA

PRODUCTS: Housewares, kitchen products, small appliances, linens, housekeeping and spa supplies, furniture, art and other products to support lodging operations

INDUSTRY CLAIM TO FAME: Specializes in Room in a Box®, custom unit-packed housewares and OS&E kitting services

HILTON PARTNERSHIP: Outfitting Hilton properties with top-quality OS&E, ensuring seamless operations and enhanced guest satisfaction

“Since signing our Hilton contract as a diverse supplier, we’ve been awarded a handful of projects that allowed us to work very closely with the professional team at HSM. They’ve worked with us every step of the way to ensure the Room in a Box® services we provide went off smoothly upon delivery. We are registered as a diverse supplier with other hotel companies, and none have recognized our veteran-owned status nearly as well as Hilton has. We look forward to many more years of collaboration.”

Eric Martin | Owner & President | Lodging Kit Company

small business BIG IMPACT

Champions for Change

2023 SUPPLIER DIVERSITY AWARDS

HSM’s annual Supplier Diversity Awards celebrate those Team Members and organizations whose above-and-beyond contributions are empowering us to set new industry standards for inclusion.

DIVERSE SUPPLIERS OF THE YEAR (New in 2023)

Partake Foods | Minority/Woman-Owned Manufacturer of Allergen-Friendly Foods

As a Black-owned, woman-led business, Partake offers everyone the ability to share in life’s sweet joys. Partake Foods are allergen-friendly, gluten-free and vegan, and they were pivotal in bringing about DoubleTree’s vision for a more inclusive guest welcome.

Sobel Westex | Minority-Owned Global Leader in Hospitality and Retail Textiles

Sobel Westex consistently demonstrates strong dedication to diversity, from product innovations and partnerships with leading advocacy groups to community-focused initiatives, local artist collaborations and a commitment to uplift others.

PRIME SUPPLIER OF THE YEAR (New in 2023)

TAPFIN | Industry-Leading Managed Service Provider

TAPFIN’s commitment to diverse supplier engagement is evident through their role transitioning Hilton’s payroll spend to a Tier 1 supplier and their 12 active diverse supplier contracts with HSM.

Small businesses are a powerful driver of the world’s supply chains, and our Team Members take pride in supporting their favorite locally owned shops and restaurants each year on Small Business Saturday. Big thanks to all who took part and made a positive impact in your communities.

Congrats to MARILYN ROJAS, who won a free night at any Hilton hotel in our “Shop Small, Win Big” contest. Marilyn shopped small at iRun Company in Miami, Florida—a full-service specialty running store that also fosters community fitness by hosting free “Workout Monday” group runs.

EXECUTIVE OF THE YEAR

Shawn McAteer | SVP & Brand Leader | DoubleTree by Hilton and Hilton Grand Vacations

Shawn was a driving force behind our allergen-friendly cookie collaboration with Partake Foods. His dedication to including diverse businesses in RFPs and leadership ensuring a successful launch underscore his commitment to supplier diversity.

PROCUREMENT SPECIALISTS OF THE YEAR

Paola Chavez | Manager | Property Operations Category Management

Paola was instrumental in driving increased inclusivity this year, ensuring the inclusion of 3+ diverse suppliers for Guest room Cleaning and Maintenance RFPs. She is also active in the Hispanic/Latinx Team Member Resource Group and coordinates team volunteer activities at a local food bank.

Erika Malhotra | Sr. Manager | F&B Category Management

Erika’s involvement in supplier diversity events is exemplary. She was integral to the DoubleTree cookie project, collaborating with RFP finalists Homefree and Partake, and her leadership updating the Brand Approved Product List helped streamline 2023 program launches.

Textile/Terry Team | Led by Laura Beumer | Sr. Director, OS&E Category Management

HSM’s Textile team evaluated nearly 60 suppliers and 450 products before naming certified MBE, Sobel Westex, Hilton’s primary U.S. terry supplier. Sobel was selected for their superior product, pricing and sustainability standards.

BUILDING NETWORKS & NEW PARTNERSHIPS

We recognize that authentic, lasting connections are essential to creating a more inclusive business environment. Our Supplier Diversity team frequently takes part in industry events designed to open doors for mutual growth and development, attending 12 events and investing over 300 hours this year. Every event is a learning experience for our organization, and each interaction with diverse suppliers and industry partners better equips us for continuous growth and efficacy in the work of inclusion.

HSM is also proud to serve as a host and organizer when advocacy opportunities arise. Our team enjoyed sponsoring and spearheading three signature events during the 2023 NMSDC Annual Conference & Exchange in Baltimore. Themed “Closing the Equity Gap,” each signature event gave HSM the chance to support greater economic empowerment for minority-owned enterprises across the country.

SIGNATURE EVENTS

NMSDC HOSPITALITY INDUSTRY GROUP SUPPLIER DIVERSITY INSTITUTE

As Hospitality Industry Chair host, HSM offered a dedicated training class for supplier diversity professionals attending NMSDC focused on best practices, industry-specific challenges and innovative solutions designed to elevate the hospitality sector to new heights.

CRMSDC AND HILTON HOST COMMITTEE RECEPTION & NETWORKING EVENT

In partnership with CRMSDC, HSM was honored to sponsor NMSDC’s host committee reception, offering a unique platform for attendees to connect, share insights, celebrate the achievements of MBEs and underscore the importance of meaningful collaboration.

NMSDC MBEIC MEETING & EVENT SPACE

HSM was proud to provide the venue for this year’s Minority Business Enterprise Input Committee council meetings, offering space for council members to facilitate productive discussions, brainstorming and strategic planning sessions.

WBENC

NGLCC BEST-OF-THE-BEST LUNCHEON

USBC WOMEN’S HISTORY MONTH LUNCHEON

NMSDC ANNUAL CONFERENCE & EXCHANGE

SUPPLIER DIVERSITY SUMMIT

Thursday, Dec. 7 1-4 p.m. EST

In December, HSM hosted our fifth-annual Supplier Diversity Summit, connecting diverse suppliers with industry insights, a trade-show experience, on-site training and dedicated networking time with Hilton stakeholders.

HILTON MCLEAN INNOVATION GALLERY

7920 Jones Branch Drive McLean, VA

Summit highlights included recognition of Hilton’s 2023 Supplier Diversity Award winners, a cross-functional platform moderated by HSM President Anu Saxena and the return to in-person networking and engagement.

We were also proud to announce the winner of the 2023 Supplier Advancement Fund grant — Rooted in Radiance. This $10,000 grant reflects our commitment to boosting economic growth, innovation and entrepreneurship among minority- and woman-owned small businesses, focusing on economic impact and potential.

We know that a more diverse supply chain is a stronger supply chain, and, at the Supplier Diversity Summit we heard from a cross-functional group of key stakeholders about the ways Hilton is championing supplier diversity and advancing positive impact across supply chains.

HSM awards the 2023 Supplier Advancement Fund grant to Rooted in Radiance, a certified WBENC, SBA and HUBZone business providing holistic well-being programs and workshops focused on fitness, stress management and mental resilience.

COLLABORATION FOR SHARED SUCCESS

Our commitment to economic parity and supplier diversity extends well beyond membership with industry-leading organizations working to effect lasting change.

From Hilton’s new seat on the Board of Directors for NMSDC to our critical work in policy development with partners such as CRMSDC and NaVOBA, our leaders play an active role establishing industry standards and best practices for diversity and inclusion.

2024 BOARD & COMMITTEE PARTICIPATION

National Minority Supplier Development Council Executive Board Seat & Hospitality Industry Group Chair

National Veteran-Owned Business Association Board Member & Committee Co-Chair

National LGBT Chamber of Commerce

NGLCC Procurement Council Member & NGLCC Corporate Advisory Council Member

Capital Region Minority Supplier Development Council Board Member

US Pan Asian American Chamber of Commerce Braintrust Committee Member

United States Hispanic Chamber of Commerce

Senior Advisory Council Member

“We remain committed to leveraging our company’s large global footprint and deep integration within the world’s communities to expand local sourcing opportunities, support more tier II minority businesses, enhance efforts around MBE inclusion and development and establish new wealth-building opportunities for the emerging majority of Americans.”

Anu Saxena President, HSM