Every hotel’s furniture, fixtures, and equipment (FF&E) will eventually need replacement, whether due to normal wear and tear, unexpected damage, an interior design project, or property renovation.
The costs associated with FF&E procurement, especially for large orders of duplicate guest room furniture, are significant. The average FF&E room budget for basic two-star hotels can run between $4,000 and $7,000. The budget for each room at a luxury five-star resort can easily top $35,000. Custom furnishings, which can differentiate a property and improve its perception, can increase furnishing costs significantly.
To prepare for these costs, whether expected or unexpected, it’s critical to include a separate line item in your annual budget for FF&E expenses.
What is Hotel FF&E?
Hotel furniture, fixtures, and equipment include any components of a hospitality space that aren’t permanently attached to the structure. Put simply, it’s moveable furniture and other items like lamps and artwork. Examples include:
- Guest rooms: Headboards, beds, desks, chairs, window treatments, shelving, and decorative items
- Conference rooms: Tables, podiums, chairs, desks, partitions
- Business centers: Desks, chairs, tables
- Restaurants and lobbies: Tables, chairs, sofas, bar stools.
Tech items are also a critical component of hotel FF&E, including:
- Computers
- Printers
- Projectors
- Audio-visual components
- Televisions
- Virtual concierges.
Developing a hotel FF&E budget plan is the key to creating a solid FF&E budget. It’s the only way to prevent unexpected — and costly — surprises.
To meet your future FF&E costs, including those associated with procurement, manufacturing, delivery, and set-up, include a dollar reserve amount that incrementally increases annually until it plateaus at a time when you expect to invest in new FF&E.
For example, the year after your hospitality company buys new furniture, fixtures, and equipment, budget a reserve of about two percent. Then, increase it to three, four, and five percent over the next three years. Continue to set aside five percent to the reserve budget in the following years so there are adequate funds when it comes time to invest in FF&E. These percentages are merely benchmarks. The ones you use will depend on your property type and FF&E needs.
Invest for the Long-Term
Another component of hospitality FF&E budgeting is controlling costs by procuring durable and long-lasting furnishings.
For hospitality companies, purchasing FF&E that’s built to last is critical to protecting the integrity of your investment and ensuring a positive ROI. It also gives you more time to save up for your next FF&E purchase, lowering the percentage of your budget you need to set aside each year.
We don’t need to tell you that guest rooms and common areas experience significant use and wear and tear. High-quality FF&E costs more upfront and initially requires a bigger bite of your budget than shoddy furnishings. However, they typically last much longer because they are built using superior materials and workmanship. This means you’ll need to replace fewer pieces damaged because of inferior quality.
Replacing poorly built FF&E in hotel spaces adds up over time and usually surpasses the cost of purchasing quality products.
The experts at The Stroud Group can help you select quality FF&E within your budget that will stand the test of time. Contact us today.