CapEx planning is something that theoretically comes up each year of a hotel’s life span. Some years the resulting CapEx from those capital expenditure plans are performed and some years they are purposely deferred. None the less, this yearly occurrence of the CapEx planning process tends to cause hoteliers to focus on a 12 month cycle versus a long-range (multi-year) management tool. This is unfortunate, since long-range Capital Expenditure Plans offer so much more information in which to base strategic decisions. [Read more…]
CapEx dollars do not come easy. If you are involved at the hotel level you realize each year that the property could have used more CapEx to meet the ongoing needs. Those in upper management constantly balance financial issues and also realize that there is not enough CapEx money to go around. For these reasons, processes should certainly be based on building Capital Expenditure Plans that avoid any form of waste. This directly relates to the dollars that are applied to CapEx projects, successfully setting schedules that do not excessively displace business and holding to well organized internal processes.
The following 3 items negatively influence capital expenditure programs and aggressively diminish effectiveness. [Read more…]
The past recession has been unusually hard on the physical assets of hotel properties! In the past, CapEx dollars may have kept your hotel fresh and compliant with guest expectations. However, several years of non-existent capital expenditures has now come home to roost.
Certainly any hotelier would want to correct issues that are negatively affecting guest satisfaction, destroying price-value and diluting guest loyalty! After all, it is difficult to grow revenue if a multitude of situations are driving business away. No hotel is immune from these issues as most hoteliers face situations such as these continually….even in a good economy.
As hospitality indicators are finally showing upward trends, the best solution in correcting tired FF & E (Furniture, Fixtures & Equipment) is to get a fresh look at your hotel. To accomplish this do a “walk through”. Do this using a note pad and while having two hotel associates (that are known for attention to detail) accompany you. [Read more…]
Since hotels daily encounter a multitude of issues that involve Operating Expense (OpEx) and Capital Expenditures (CapEx), it should not be a surprise that these two categories are occasionally an area of misunderstanding. Even so, most items found in a hotel can clearly be applied to one of the two above categories. However, for those times of confusion, the following tips may assist you in successfully resolving this issue.
It should first be mentioned that the philosophies regulating OpEx and CapEx will vary within each company due to the different approaches of upper management and corporate accounting staff. Even at times, specific circumstances will affect how policies are applied to Operating Expense or Capital Expense items. [Read more…]
From Hospitality Design Expo 2011 – This years show wrapped up today and proved to continue being an outstanding resource for hospitality. I visited with many vendors whose products and services are excellent solutions for hotel CapEx issues. Not only is this expo’s 900+ exhibitors a wealth of information, it also hosts a full schedule of seminars, panel discussions and roundtables.
The dates for next years expo has not been published yet, but is generally a mid-May event. Schedules and other expo details can be accessed at www.hdexpo.com .
While at the show, I visited the Mincey Marble booth that has many great solutions for guestroom showers. However; one in particular was most interesting.This particular system has been designed to replace a bathtub, but has a curved shower basin. Even better….it sports a curved sliding glass door system that travels in a track (does not hinge into the room). This is especially appropriate when you want an upgraded look and cannot accept a shower door swing into the bathroom. Contact Donna Mincey or Doug Westmoreland for more details.
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HD Expo – Vegas 2011 Today was the second day of this annual expo and I am still encouraged about the turnaround in hospitality. This morning I participated in the “Owners’ Roundtable” event sponsored by ISHP (International Society of Hospitality Purchasers). [Read more…]