How to Enhance the Look of Your Property & Your Bottom Line
By Amy Locke Director, Interior Design, Hatchett Hospitality | May 06, 2010
Effective FF&E has never been more of a challenge for hotel owners and managers.
Among the factors affecting design and purchasing decisions are 1) a tight economy, which is changing plans for both business and leisure travelers while creating price increases in products to be purchased as well as in the transportation costs for delivery of those products, 2) new standards by almost every franchise brand, which have led to considerable hotel renovation as well as property rebranding, and 3) travelers who have become more discriminating and demanding about their hotel accommodations.
Nevertheless, the hotel industry certainly knows how to weather a storm - and this article provides specific tips for how owners can lower their risk and raise their chances for profitability by hiring the right FF&E team in this difficult environment.
FF&E is a "made to order" business - it's designed and purchased one hotel at a time, very carefully and deliberately to create a specific "look" and "feel" that's aimed at a targeted group of travelers.
And usually FF&E purchases are made infrequently - only every year to seven years, depending on the product and its usable life cycle. Costs can range from a few thousand dollars per room for a small-scale renovation to upwards of $20,000 per room for a luxury hotel.
Typically, there are two ways to buy FF&E - (1) through the "agent" model under which a company negotiates purchases on the client's behalf or (2) through the "dealer" model under which a company coordinates all four aspects of the FF&E process, namely design, purchasing, transportation, and installation.