The ODP Corporation Announces Major Milestone Agreement with Leading Hospitality Management Company Becoming Key Supplier and Distribution Partner

Rhea-AI Summary

The ODP (NASDAQ:ODP) announced a strategic partnership with one of the world's largest hotel management organizations, positioning ODP Business Solutions as a preferred provider for Operating Supplies & Equipment (OS&E). This expansion targets the $16 billion hospitality industry, focusing on in-room hotel supply needs.

The agreement marks a significant milestone in ODP's B2B evolution beyond office supplies, allowing the company to provide bed and bath textiles, liquid beauty products, lodging kits, room technology, and in-room amenities. The hospitality sector, combined with adjacent industry segments, represents a $60 billion market opportunity for ODP Business Solutions to showcase its next-day delivery, customer service, and national supply chain coverage.

Positive

• Entry into $16 billion hospitality market through major partnership
• Access to broader $60 billion market opportunity across adjacent sectors
• Expansion beyond traditional office supplies into high-demand hospitality products
• Strategic positioning as preferred provider for major hotel management organization

Negative

• None.

Insights

Market Strategy Analyst

This strategic partnership marks a pivotal transformation for ODP, signaling a sophisticated diversification strategy beyond its traditional office supplies domain. The expansion into the $16 billion hospitality sector, part of a broader $60 billion market opportunity, represents a calculated move to leverage ODP's existing infrastructure and supply chain capabilities in higher-growth segments.

The strategic value proposition is compelling for several reasons:

• ODP's established next-day delivery infrastructure and national supply chain coverage provide immediate competitive advantages in serving time-sensitive hospitality needs
• The hospitality industry's procurement patterns typically involve recurring, predictable orders, which can enhance revenue stability and inventory management efficiency
• Cross-selling opportunities exist between hospitality supplies and ODP's traditional product lines, particularly in cleaning and breakroom categories
• The expansion allows ODP to diversify its revenue streams and reduce dependence on the mature office supplies market

However, success in this venture will require careful execution:

• Working capital requirements may increase due to the need to maintain specialized inventory for hospitality clients
• Margins in hospitality supplies could differ significantly from office supplies, potentially impacting profitability metrics
• Competition from established hospitality supply chains and potential market consolidation could present challenges

The timing of this expansion appears strategic, capitalizing on the hospitality industry's post-pandemic recovery phase. With a market cap of $679 million, this move could significantly impact ODP's growth trajectory and valuation metrics if executed effectively.

New partnership positions ODP to expand in the growing $16 billion hospitality industry becoming a key supplier for in-room hotel needs

BOCA RATON, Fla.--(BUSINESS WIRE)-- The ODP Corporation (NASDAQ:ODP) (“ODP,” or the “Company”), a leading provider of products, services and technology solutions to businesses and consumers, today announced a major milestone in its B2B evolution as its subsidiary, ODP Business Solutions, entered into a key new partnership with one of the world’s largest hotel management organizations becoming a preferred provider for Operating Supplies & Equipment (OS&E). Through this agreement, ODP Business Solutions will become a strategic distribution partner to reliably support the in-room hotel supply needs necessary to run operations and meet their customers’ expectations. This product expansion and strategic partnership reflects ODP Business Solutions’ continued evolution beyond office supplies and highlights the company’s ability to leverage its capabilities and offerings to elevate the experience to businesses in the hospitality, healthcare and adjacent sectors.

“Our expansion in the hospitality market is a strategic step forward, leveraging our expertise to offer the service and compliance standards that customers in this space demand,” said David Centrella, executive vice president of The ODP Corporation and president of ODP Business Solutions. “This milestone aligns perfectly with our commitment to providing broad, comprehensive solutions and solidifies our position as a trusted partner in this dynamic and growing industry sector.”

“This agreement represents a major inflection point in our company’s history, positioning ODP to pursue growth in new and growing industry segments where our core competencies resonate,” said Gerry Smith, chief executive officer of the ODP Corporation. “The hospitality sector, combined with other adjacent industry segments, represents a $60 billion market opportunity for ODP Business Solutions to showcase its next-day delivery, high-level customer service and national supply chain coverage to a growing industry base.

ODP Business Solutions will help hotels elevate their linen and towel service by providing high-quality textiles for bed and bath. It will also distribute liquid beauty products and lodging kits, all uniquely packaged to accommodate the needs of every client and guest. The expansion of their product portfolio also includes hotel room technology and in-room amenities.

“These offerings reflect our commitment to delivering trusted brands and products which perfectly supports the curated experience we deliver to our customers every day and across every industry,” said Nisha Brown, vice president of marketing & product management at ODP Business Solutions.

ODP Business Solutions will continue leveraging existing categories in cleaning, breakroom, food and safety and will focus on adding new categories to meet the needs of its hospitality customers across all business verticals. As a trusted provider of Operating Supplies & Equipment (OS&E), ODP Business Solutions’ vast portfolio supports an array of industries including education, healthcare, manufacturing and more.

To learn more about ODP Business Solutions, visit odpbusiness.com. Learn more about The ODP Corporation at theodpcorp.com.

About ODP Business Solutions:
ODP Business Solutions is a trusted partner with more than 30 years of experience working with businesses to adapt to the ever-changing world of work. From technology transformation, sustainability, innovative workspace design, cleaning and breakroom, and everything in between, ODP Business Solutions has the integrated products and services businesses need. Powered by a collaborative team of experienced business consultants, world-class logistics, and trusted brand names, ODP Business Solutions advances how the working world gets work done. For more information on ODP Business Solutions, visit www.odpbusiness.com.

ODP Business Solutions is a division of The ODP Corporation (NASDAQ: ODP). ODP and ODP Business Solutions are trademarks of ODP Business Solutions, LLC. Any other product or company names mentioned herein are the trademarks of their respective owners.

About The ODP Corporation
The ODP Corporation (NASDAQ:ODP) is a leading provider of products and services through an integrated business-to-business (B2B) distribution platform and omnichannel presence, which includes world-class supply chain and distribution operations, dedicated sales professionals, online presence and a network of Office Depot and OfficeMax retail stores. Through its operating companies Office Depot, LLC; ODP Business Solutions, LLC; and Veyer, LLC, The ODP Corporation empowers every business, professional, and consumer to achieve more every day. For more information, visit theodpcorp.com.

ODP and ODP Business Solutions are trademarks of ODP Business Solutions, LLC. Office Depot is a trademark of The Office Club, LLC. OfficeMax is a trademark of OMX, Inc. Veyer is a trademark of Veyer, LLC. ©2024 Office Depot, LLC. All rights reserved. Any other product or company names mentioned herein are the trademarks of their respective owners.

FORWARD LOOKING STATEMENTS – THE ODP CORPORATION

This communication may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements or disclosures may discuss goals, intentions and expectations as to future trends, plans, events, results of operations, cash flow or financial condition, or state other information relating to, among other things, The ODP Corporation (“the Company”), based on current beliefs and assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “expectations”, “outlook,” “intend,” “may,” “possible,” “potential,” “predict,” “project,” “propose” “aim” or other similar words, phrases or expressions, or other variations of such words. These forward-looking statements are subject to various risks and uncertainties, many of which are outside of the Company’s control. There can be no assurances that the Company will realize these expectations or that these beliefs will prove correct, and therefore investors and stakeholders should not place undue reliance on such statements.

Investors and shareholders should carefully consider the foregoing factors and the other risks and uncertainties described in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the U.S. Securities and Exchange Commission. The Company does not assume any obligation to update or revise any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127520981/en/

Jennifer Robins

Media Relations

Jennifer.Robins@theodpcorp.com

Tim Perrott

Investor Relations

Tim.Perrott@theodpcorp.com

Source: The ODP Corporation

FAQ

What is the market size opportunity for ODP in the hospitality sector?

The hospitality sector, combined with adjacent industry segments, represents a $60 billion market opportunity for ODP Business Solutions.

What new products will ODP Business Solutions provide to hotels?

ODP Business Solutions will provide bed and bath textiles, liquid beauty products, lodging kits, hotel room technology, and in-room amenities.

How does this partnership expand ODP's business beyond office supplies?

The partnership positions ODP as a strategic distribution partner for Operating Supplies & Equipment (OS&E) in the hospitality industry, moving beyond traditional office supplies.

What is the size of the hospitality industry that ODP is entering?

ODP is entering the $16 billion hospitality industry through this partnership.

What services will ODP Business Solutions offer to hospitality clients?

ODP Business Solutions will offer next-day delivery, high-level customer service, and national supply chain coverage for hotel supply needs.