Processes

Multi-Level Payment Approval in Hotel Chains: Best Practices

April 20, 20269 min read
SL

Sergey Lvov

Co-founder, Keiront

Table of Contents

The Problem: Chaotic Payments in Hotel Chains

A network of 3-5 hotels with 10-20 daily payments: to laundry suppliers, contractors, marketing agencies. Without proper processes, chaos ensues.

  • Payments approved by different criteria in different hotels
  • Network CFO doesn't see where money goes until payment
  • Approval takes 3-5 days (emails, calls)
  • No audit trail: who approved, when, why — unclear

Result: Network CFO works in firefighter mode, controlling everything manually.

Four Levels of Payment Approval

Proper structure divides authority by levels.

  • Level 1: Hotel General Manager — initiates payment, fills form: what, from whom, for how much.
  • Level 2: Hotel CFO Director (if > 100,000 ₽) — checks budget, logic, no duplicates.
  • Level 3: Network CFO (if > 500,000 ₽ or capex) — checks strategy, alignment with network budget.
  • Level 4: General Director (if > 2,000,000 ₽) — capital works, strategic investments.

Approval Thresholds

Recommended ranges (customize for your needs):

Amount RangeApprovesVerifies
Up to 100K ₽GMDocuments, purpose
100K–500K ₽CFO Dir.+ Budget, price, counterparty
500K–2M ₽Network CFO+ ROI, alternatives
> 2M ₽General Director+ Strategic context

Audit Trail and Regulatory Compliance

Regulations require each transaction to be documented. This means:

  • Each payment has primary documentation
  • All approval participants are known
  • History recoverable: who initiated, who approved, when
  • System protected from unauthorized changes

What to Automate, What to Keep Manual

Automate:

  • Amount-based routing: If payment ≥ 100K ₽ → CFO Dir. If category = Capex → Network CFO.
  • Real-time notifications: Slack/email: payment awaiting your approval.
  • Duplicate prevention: Was a similar payment to this vendor already made?

Keep manual:

  • Exceptions: Verbal CFO approvals, special cases.
  • Counterparty quality assessment: New vendor = risk. System flags, CFO decides.

Real-World Case: Keiront Chain

One pilot network: 4 hotels, ~500 payments per month. Previously took 3-5 days.

  • Before: 3 days average approval time
  • After: 4 hours average approval time

Key changes: Slack integration (personal notifications), mobile approve, full status transparency. Result: 80% reduction in approval time.

Ready to Speed Up Payment Approvals?

We'll show how one of our chains reduced time from 3 days to 4 hours.

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