What’s a CapEx, and why should I care?
Most hotel management companies and hospitality asset owners are at the front end of CapEx planning for 2018 and beyond. Most participants in this planning will ask themselves, at one point or another; “Is CapEx planning a horrible waste of my time?”
Surprisingly, the answer is often “Yes”, but in only specific situations:
- Whenever the CapEx plan is not aligned with the property owner’s investment strategy, it is a waste of time,
- Whenever the CapEx plan does not address all the capital needs of the property, it is a waste of time, and
- Whenever the CapEx plan contains poorly defined scope of work, inaccurate budgets, or incorrect information, it is a waste of time.
For any smart hotel owner, and any smart management company, CapEx planning is absolutely worth doing, and absolutely worth doing well!
Why?
Here is a link to a short article that will tell you what a “CapEx” is, and why CapEx planning is important:
Highest and Best Use – CapEx Part I – What’s a CapEx, and Why Should I Care?
R-A Associates provides management consulting services focused on creating and sustaining the long term value of hospitality real estate assets.
- Property Planning and Design,
- Facilities Operations, and
- CAPEX.
Contact us Here.
R-A Associates, LLC is associated with
, The Global Network of Independent Hospitality Professionals.