Beyond the Beds: Unique Accounting Challenges in the Hotel Industry
Furniture, Fixtures, and Equipment (FF&E) depreciate faster in hotels than in offices. A guestroom mattress lasts 5–7 years; carpet, 3–5 years. accounting for hotel industry
Smart hotel accountants maintain a (often required by lenders)—typically 5–10% of gross revenue set aside for replacements. Failing to fund this leads to deferred maintenance and declining ADR (Average Daily Rate). Beyond the Beds: Unique Accounting Challenges in the