HA 355 Review 2_StudyGuide - HA 355 Review CHAPTER 1:...

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HA 355 Review C HAPTER 1 : Hospitality facilities are a financial asset - They are a return on asset in 2 ways: o Operating profit o Real estate appreciation Significant reductions in RevPar result from defects in appearance or operation equipment There are two major operating costs for facilities: - POM (Property Operation and Maintenance) o Includes labor, fringe benefits, supplies, and repair expenses, contract maintainance o Labor and fringe benefits (fixed costs) = 50% of POM expenditure - Utilities o o Influenced by: Occupancy Weather energy costs Utility company rates Geographic area - Together, these two costs can be as much as 10% of property’s gross revenue - The more you spend on construction costs, the more you spend to maintain it CapEx – Capital Expenditures - replacement of worn-out FF&E and soft goods, but also covers wear and tear, obsolescence, life safety, regulations & requirements (ADA), changing technology, replacing technology, and renovation of building components. - 0-30% of revenue each year Reserve for Replacement 3-7% of gross revenues * Good construction and planning will lead to predictable and controllable maintenance costs! Impact of Facility Design on Facilities Management: Components, Layouts, Materials o The facility’s components (equipment), layout, and materials dectate the needs for facility maintenance, renovation, and operation. Equipment Concerns: 1. Durability 2. Lifetime 3. Reparability
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4. Efficiency 5. Accessibility Management Responsibilities: Safety and security is always the primary concern of management! Legal and regulatory compliance Service Cost Control Management Contracts and Franchise Agreements **Be familiar with some of the typical responsibilities of the facilities dept in packet 1. Emergency/Disaster Planning and Business Continuation Planning 4 Phases of Disaster Response: 1. Mitigation – manage risks, insurance 2. Preparedness – emergency planning 3. Reaction/Response – execute plans when emergencies occur 4. Recover – clean-up, documentation, review plan Objectives of Disaster Planning - safeguard capital assets - restore critical mechanical functions - protect building occupants - *prevent damage or loss of critical information o plan components are in notes, but not so important Business Continuation Planning - maintains the vitality and overall health of the organization after a major interruption, and keeps businesses running after emergencies o Process: Business Operations Analysis Identify vulnerabilities, critical business functions, estimates of recovery time Technical Operations Analysis Data storage and backup Recovery processes and timetables Off-site systems Developing the Recovery Plan
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C HAPTER 2: Types of Maintenance: 1. Routine Maintenance a. Minimal skill to perform b. Occurs regularly c. General upkeep of the property
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HA 355 Review 2_StudyGuide - HA 355 Review CHAPTER 1:...

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