HTL 507 Lecture Notes - Lecture 1: Preventive Maintenance, Cost Accounting, Planned Maintenance
25 Oct 2017
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Document Summary
The expected return is driven by two elements. A facility constructed with appropriate quality and good budget control should have predictable costs for maintenance, operation and renovation. Owners expect a return in their investment after committing to develop and construct a hospitality facility. The two cost entries on the operating statement. In the unites states lodging properties expand more than 13 billion annually for. Individual hotels pay 7% to 9% of revenue for pom and utilities. The pom account includes all labor and fringe benefit costs accounting for about one half of pom expenses. Maintenance supplies and expendables and all contract maintenance costs. Renovation costs are under the category capital expenditures (capex) Management contracts for lodging properties are 3% to 4% of revenue to be placed in capex account. Capex cab range from near zero as much as 30% of revenue in a given year.
