Chapter 1 | The Role, Cost, and Management of Hospitality Facilities

Question 1

What parts of the facility have the largest impact on RevPAR if not properly maintained?

Answer 1

1. Parking lots
2. Landscaping
3. Condition of the exterior of the building

Question 2

Six main functions of a facility

Answer 2

1. Protection
2. Comfort
3. Experience
4. Identity
5. Location [for creation/delivery of products]
6. Sources of revenue

Question 3

Five main costs associated with development and construction of a hospitality facility

Answer 3

1. Land
2. Site improvements
3. Construction of physical plant
4. Furniture, Fixtures, and Equipment (FF&E)
5. Soft costs

Question 4

What are soft costs related to development and construction of a hospitality facility?

Answer 4

A cost for an item that is not considered direct construction cost: architectural/engineering fees, financing, legal fees, etc.

Question 5

Two main classifications of operation costs generally assigned to the engineering and maintenance department along with their components

Answer 5

1. Property operation and maintenance
   a. labor
   b. fringe benefits
   c. supplies and expendables
   d. parts
   e. equipment
   f. contract maintenance
2. Utility cost
   a. energy
   b. water
   c. waste management

Question 6

Four areas of impact facility design has on facilities management. Describe how each will impact CapEx, Maintenance cost, and Utility cost

Answer 6

1. Components
2. Layout
3. Materials, quality, and types of construction
4. Equipment

Question 7

What is CapEx?

Answer 7

Money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.

Question 8

Six major factors that affect POM and utility expenditures for hotels. Include how they impact overall POM and utility expenditures

Answer 8

1. Weather
2. Usage
3. Type of construction
4. Quality of construction
5. Age of the building
6. Maintenance history

Question 9

A manager’s three duties for facility maintenance

Answer 9

1. Ensure facilities are kept clean and not abused
2. Perform minor maintenance and repairs
3. Communicate problems accurately to the maintenance and engineering department

Question 10

Five major areas of responsibility for facility managers - describe importance to overall operation

Answer 10

1. Safety and security
2. Legal and regulatory compliance
3. Service to customers [internal/external]
4. Cost control
5. Asset management

Question 11

Why should facility managers be included in design and commission of building?

Answer 11

1. Keep from oversizing or undersizing systems

2. They have a greater span of knowledge about buildings and they can help the management make more accurate decisions

Question 12

What are the 2 consequences of a poor facility manager?

Answer 12

1. Wasted Expenditures
2. Poor maintenance
   a. Shorter facility/equipment life
   b. Possible fines
   c. Safety concerns