What is an FF&E and OS&E budget in the purchase of equipment in hotels?

The word hotel comes from the French language, and means “semi-detached house”, we refer to a facility, building or establishment equipped with everything necessary, which is dedicated to housing people , usually temporarily.

When investing in a tourism business, it is important to know the best ideas for a successful hotel opening . There are many points that need to be planned , then, there may be some inconveniences; it is necessary, a team of high quality and experience.

How can hotels be classified?

Hotels are classified according to the services, facilities and comfort offered to users, the most frequent is by the number of stars, in which five represent a high level of comfort and convenience; while one star offers a very basic service.

But it should be mentioned that in other countries, the classifications are based on letters or diamonds. We will see some examples of hotels, among them we have rural type hotels , which are located in places that have contact with nature, far from cities.

There are also the monument hotels, called paradores , that is, those that have a historical building, such as a castle, palace or church. Likewise, there are spa hotels, which have, as the word says, a spa, massages, thermal treatments, among others.

We also find casino hotels, mountain hotels and hostel types . Also the hotel-apartments, which have a fridge and oven to be able to consume food in the room; there are even the motels, which have a separate entrance with in-room parking.

What is common in all cases is to know the importance of advertising and digital marketing in the tourism sector , in which hotels operate. In addition to knowing the differences between Target Market and Target Public , to achieve a good marketing strategy .

What do these named classifications depend on?

Well, it depends a lot on the services, the type of establishment and the comfort that you are going to offer customers, which, you are supposed to contemplate, in your business plan. Of course, this will also depend on the budget you have for that project .

However, there is another aspect that must be considered, and it is the continuous replacement due to deterioration of furniture, beds, curtains, mattresses, carpets, among others; Well, if you want to maintain high status and quality, everything must always work in perfect condition.

Therefore, it is very important to establish a budget or reserve for what is called FF&E and OS&E , that is, a fund destined for these expenses that have to do with all the components of the hotel and the equipment that the clients operate, during the stay.

How to estimate the FF&E and OS&E budget in the purchase of equipment in hotels?

At the hotel level, as the equipment used is very large, then the budget has been separated into these two terms of FF&E and OS&E , therefore each one has its well-defined fund, in terms of the elements it covers; however, both must be worked together.

When we talk about FF&E we refer to what has to do with the furniture, equipment, accessories of a hotel , at the level of rooms and common areas; taking into account, the time its usefulness and deterioration, to be able to be replaced with anticipation and immediacy.

But like everything else, the concept has evolved over time, now it also includes everything that has to do with decoration , such as carpets, curtains, lighting, mirrors, fabrics, wall and window treatment, pieces of art, among others. .

Instead OS&E, are the elements that give comfort to the client . Such as towels, dishes, cutlery, sheets, mattresses, hair dryers, fragrances, safes, televisions, mini bars, and even place different types of Wifi Hotspot , among others.

Finally, we can conclude that both budgets are necessary both at the hotel level, as well as at any company, and one is complemented by the other ; They have only been separated for convenience when allocating money to make purchases.


by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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