Facility management
Chapter 1: Facility management: An introduction
What is facility management?
- Approach trough different angles
o In most hotels: responibility of the engineering and maintenance department
Facility = the building, the physical grounds of the hotel, energy and water
management
Planned maintenance and cleaning programs, improving physical assets,
diversification of revenue options
Sustainability!
o Outsourcing
Facility management = how to manage and facilitate services in the hotel
industry.
Which services are best provided by the hotel and whrich via outsourcing?
Housekeeping, catering, maintenance and repair, IT systems;
Facility management companies.
,Chapter 2: The role, cost and management of hospitality facilities
2.1. The role of facilities in the hospitality industry
Guest
satisfaction
Safety Attraction
Unseen facilities
Role of Return on
facilities investment
Providing Revenue
identity generation
Manufacturing
plant
- Guest satisfaction
o Appealing visual environment: overall ambiance, experience, comfort sustained
by the maintenance and housekeeping staff.
- Facilities as the attraction
o Engagement and entertainment (destination resorts, theme restaurants, casinos,
theme parks).
- Unseen facilities
o Comfortable thermal environments, controlling indoor air conditions, water
temperature;
o Elimination of unwanted sounds.
- Manufacturing plant
o equipment and systems that allow the operation to function (power and
communication cabling, elevators, collection of utilities, etc.);
o workplace for the employees.
, - Identity
o characteristic roof shapes, signage, colors, trademark elements.
- Return on investment
o location where the business generates operating profit;
o change in market value of the property.
- Revenue generation
o guest rooms, meeting spaces, dining outlets, recreation spaces;
o maintain the facilities you have! (cost effective and more efficient).
Maintenance, energy, environmental and capital project expenditures are not only costs! They
contribute to guest satisfaction, employee productivity, revenues and profits.
FACILITY MANAGEMENT COMPANIES
- ISS, EW Facility Services
- Activities: housekeeping, grounds and physical plant management.
- Services for hospitality companies, schools, universities, etc.
2.2. Costs associated with hospitality facilities
- Development and construction
o Initial costs;
o difference between budget & economy lodging and convention-, resort- and luxury
properties (plants and F&B outlets).
o Budget & economy properties: investment of several million euros
Return on
o Large luxury properties: several hundred million euros investment!
- Operation
o Property operation and maintenance (POM)
labour and fringe benefit costs, maintenance supplies and expendables,
contract maintenance costs;
correlates with initial construction costs. 7 – 9 % of the total
o Utilities revenue
electricity, fuel, steam, water.
, - To which degree do the costs vary with hotel occupancy?
o Utilities costs are influenced by occupancy.
o Sometimes occupancy and energy needs are correlated, sometimes they’re not (see
current corona crisis).
o Maintenance should be done in periods of lower occupancy.
- Hard to compare two properties based on costs on a per-room basis
o hotels with vs. without banquet business;
o hotels with vs. without on-side laundry;
o !! ages of the facilities, types of building systems, local utility rates, local labour rates,
identifiable diffferences in construction.
Better option: cost-per-square-foot basis
0 – 30 % of the total
- Renovation and modernization
revenue
o capital expenditures (CapEx);
o significant portion of the facilities manager’s duties.
2.3. The impact of facility design on facility management
- facility components maintenance, renovation and operation;
- problems caused by materials maintenance costs;
- substandard quality of construction construction costs;
- type of construction can effect the costs of the physical plant (wood-frame structures,
exterior surface that requires painting, poorly insulated exterior walls and roofs etc.).
Facility managers should opt for proper capital investments!
“Gierigheid bedriegt de wijsheid”
E q u ip m e n t
Durability and lifetime
Repairability
Efficiency
Accessibility