Facilities

guest satisfaction; appealing visual environment-ambience-experience, comfort.

”manufacturing plant”
define the industry and provide identity in the marketplace
make a significant portion of the growth of many hospitality enterprises
provide owners with a return on investment: 1) the location of business, 2) enjoy a
portion of their “return” in the exchange in market value
no failed items, creates higher RevPAR (Revenue Per Available Room) values
compared to those who have one or more failed items
3 types of costs: 1) initial cost (designed/developed/constructed), 2) operating cost
(occupied – operated), 3) renovation cost (renovated+modernized)
should be maintained in a manner: 1)maximizes profits potential, 2)real property
appreciation.
appropriate quality constructed facility+good budget control – have predictable cost
for: maintenance, operation, renovation.

Facilities management companies

services: housekeeping, grounds, physical plant management
has another role by recognizing opportunities and challenge involved – business
opportunity

Maintenance-energy-environmental-capital project expenditures  not only cost, but als

contributors to: guests, employee productivity, revenues, profits.

Delivery of effective+well managed services  a key role in the successful operation of

hospitality business.

Costs are depending on the type of lodge  more luxurious – requires much amount

2 principal cost entries1)property operation and maintenance (POM), 2) utilities

accounts. [the data is often presented in per room basis, the expense some of the
expense will be related to occupancy.]

High absolute cost of POM will generally correlate with initial construction cost.
[the more you build the property, the more you spend for maintenance]

Capital Expenditures (CapEx) lare expenditure categoriy that is related to facilities.

must cover: wear and tear, obsolescence, regulatory requirements (ADA and life
safety-franchise product demands, changing technology, market demand for product
change, replacement and renovations of building components and heavy equipment.

The role of facility design can be understood by focusing on the factors below:
1.Component and Layouts
maintenance, renovation, operation
high-rise structure needs more cost [height], low-rise needs more time to
travel[distance]
2.Materials, Quality and Types of Construction
maintenance, renovation operation
if the building is well-constructed, the primary focus isn’t for maintenance
substandard construction requires more construction handling.
some element of the building doesn’t work, problem can result.
design+construction are relatively minor, the problem may be severe
types of construction can affect cost of physical plant

3.Equipmentdurability and lifetime: extending the lifetime of equipment can be done

with proper maintenance, yet there comes a time it needs to be replaced
repairability: property staff – repair some equipment, equipment – requires services of
specially trained mechanics; it’s near its expected life, probably isn’t worth to repair
unless the repair will extend its life; depends on the availability of parts and the ability to
remove equipment from service when it’s repaired; never jeopardize safety/safety first
efficiency: involving the awareness of the life-cycle implications of equipment
decisions; choosing a more efficient piece of equipment at a higher initial cost could
provide some real payback; a helpful process to use in this regard involves total cost of
ownership(TCO) approach – the application of TCO should be done wherever
applicable.
accessibility: it is essential to ensuring proper maintenance; ease the staff to reach
the equipment.

4.Systemsbuilding system design <oversizing problem>

*) HVAC: Heating-Ventilation-Air Conditioning – tend to be centralized
building+safety codes = must be met; owner+franchise standard = need to be
compiled with; aesthetic+architectural isses = arise; building system needs to fill its
purpose.
building system have at times been drastically oversized, resulting in excessive initial
cost and high operating expenses.
1)the interest of being sure to meet the expected loads and to compensate for
potential deterioration in performance, systems are generally somewhat oversized.
2)while building a new building, owners often don’t want to pay for computer modeling
of the building to estimate appropriate equipment size. 3)oversized systems may result
from the use of “rule of thumb” designs that may overly conservative/are just copying
the previous design used. 4)compensation for designers is sometimes based on
percentage of the system cost – a direct financial incentive to design bigger systems.

Management’s Responsibilities
safety and security: providing safe and secure environment
legal and regulatory compliance: including attention to local building codes, health
department regulations, emissions, and environmental requirements/mandatory
recycling; maintenance-refurbishment-environmental performance-availability of
amenities and services
service: given to other departments (direct+indirect),guests, facilities; require positive
manners and properly operation.
cost control: has high priority in the activities of the facilities department[top priority];
1)utilities[fuel,electricity,water,and related items] – 2)maintenance and
operations[labor,materials,contracts] – 3)capital
expenditures[furniture,fixtures,equipment/FF&E] – 4)major equipment and system
replacement; requires attention to various issues and or conflict
asset management: protecting physical asset in daily operation, maintain physical
plant of the hotel adequately – avoiding replacement to key systems and components
before the end of asset’s normal lifespan, understand the condition of critical systems in
the hotel to know which systems require repairmen/replacement and the cost to do so.

Management Contracts (MC) and Franchise Agreements (FA)

MC: an agreement between the owner/developer of a property and a professional
hotel management company.
may require management to: 1)fund reserves for future maintenance and repair
needs, 2)solicit the owner’s approval before making building-related expenditures,
3)report to the owner regarding how funds are used.
Replacement reserves: a budget line item used by commercial property underwriters
to address periodic maintenance on systems that wear out faster than the building itself
(https://www.commercialrealestate.loans/commercial-real-estate-glossary/replacement-reserves).
FA: an agreement under which one entity that has developed a particular pattern or
format for doing business[franchisor – grants another entity – the franchise – the right to
conduct such a business provided it follows the established pattern.
FA also establish important requirements for property operation and maintenance –
franchisors’ operating manuals. They establish minimum standards for: 1)constructing,
2)equipping, 3)furnishing, 4)supplying, 5)operating, 5)maintaining, 6)marketing
establishment

Responsibilities of the Facilities Department:

system and building design
system and building commissioning
building and system operations
building maintenance
guestroom, furnishing, and fixtures maintenance
equipment maintenance and repair
equipment selection and installation
contract management
utilities management
waste management
budgeting and cost control
security and safety
contractual and regulatory compliance
parts inventory and control
modifications, additions, renovations
special projects
staff training
emergency planning and response, corporate reporting