The role cost and management of hospitality facilities, chapter 1

ADA

Americans with disability act. U.S. Federal legislation enacted in the early 1990s mandating that owners and operators of public facilities provide certain accommodations for individuals with disability as specified in the legislation.

CapEx

Short for “ capital expenditure” a major expenditure category in the hospitality industry, covering replacement of worn out furniture, finishes, and soft goods; wear and tear; obsolescence; regulatory requirements, such as ADA and safety; franchise product demands; changing technology; market demands for product change; and replacements and renovations of building components and heavy equipment.

Facilities management companies

Companies with the expertise provide services, such as housekeeping, grounds, and physical plant management to hospitals companies, schools, universities, and various industries.

FF&E

Furniture, fixtures, and equipment; a major portion of CAPEx.

Franchisees agreement

an agreement under which one entity that has developed a particular pattern or format of doing business - the franchisor- grants to another entity - the franchisee - the right to conduct such a business provided it follows the establishment pattern.

HAVAC

an abbreviation for “ heating ventricular, and air condition” HAVAC is the general term applied to a properties temperature management system. It includes heat and refrigerated air systems and attendant ductwork, airflow machinery, and control devices.

Management contract

In agreement between the owner/developer of a property and a professional hotel management company. The owner/developer usually retains the financial and legal responsibility for the property and the management company receives an agreed-upon fee for operating the facility.

POM

An abbreviation for “ property operation and maintenance”. One of two principal cost entries (along with utilities) in the hospitality, industry detail detailing ongoing cost of operations following construction of the facility.

Replacement reserves

Cash revenue set aside largely for maintenance and repair needs ( The amount set aside is usually based on a percentage of gross revenue). Management contracts commonly required that operators fund replacement reserves for FF&E.

TAB

an abbreviation for “ testing, adjusting, and balancing”. In the building commissioning process, TAB is one of the very verification elements that ensure the quality of the installation of a system in the facilities ( for example, the HVAC and water system).