Скачать или смотреть The importance of a hotel’s FF&E Reserve revealed

The importance of a hotel’s FF&E Reserve revealed

Source: http://www.tfgassetmanagement.com/new...

The Furniture, Fittings and Equipment Reserve that is also known as a replacement reserve and shaped from a percentage of hotel revenues refers to funds set aside for the periodic replacement of building components that wear out more rapidly than the building itself. This reserve fund allows to better understand the needs of a hotel and ensure the property has sufficient liquidity if unexpected replacement costs arise, or a larger sum is required for property maintenance.
Underestimating the importance of this reserve fund leads to the deterioration of hotel facilities and standards and forces hotel owners to reinvest into hotels heavily. That’s why TFG asset management team strongly encourages all hotel owners to create a detailed FF&E reserve adequate for the lifespan of the asset already in the early hotel development stages.