Like this study set? Create a free account to save it.

Sign up for an account

Already have a Quizlet account? .

Create an account

Expected return is driven by 2 elements

1. operating profit (from the sale of rooms, food and bev, and meeting services)
2. real estate appreciation

2 principle cost entries on the operating (or income) statement pertaining to facilities operating are

1. Property Operation and Maintenance (POM)
2. Utilities
(in the US, lodging properties expend more than $7 billion annually for POM and utilities)

Hotels typically pay around ______% of revenue for POM expenditures and utilities

10 %
(POM is usually larger)

The POM (property operation and maintenance) account includes

1. labor
2. fringe benefit costs in the maintenance dept
3. maintenance supplies and expendibles
4. contract maintenance costs
(labor and fringe usually about 1/2 of the costs)

The utilities account includes

(electricity is the main)

A US full-service hotel has an avg expenditure of _____% of revenues for POM and utilties, while a limited servcie hotel averages ____% of revenues for these services


CapEx is

Capital expenditures
The replacement of worn-out furniture, finishes and soft goods. Covers wear and tear, obselecense, regulatory requirements w/ ADA, life safety, franchise product demands, changing technology, market demand for product change.
Can range from near zero to as much as 30% of revenue in a given year

the role of facility design can be understood by focusing on such fasts as

- facility components
- facility layout
- materials
- quality and types of construction
- equipment
- systems


heating, ventilation and air conditioning
The general term applied to a property's temperature managment system. It includes heat and refregeratied air systems and attendant ductowork, airflow, machinery, and control devices

Responsibility of facilities management as involving five major areas

- safety and security
- legal and regulatory compliance
- service
- cost control
- asset management

Management contracts

May require management to fund reserves for future maintenance and repair needs, to solicit owner's approval before making building-related expenditures, and to report to the owner regarding how funds are used


quality assuarance facet of systems installation
Process of achieving, verifying, and documenting the performance of each system to meet the operational needs of the building, within the capabitlity of the coumented design and specified equipment capacities, according to the ower's functional criteria


testing, adjusting, and balancing
In the building commissioning process, TAB is one of the verfication elements that ensures the quality of the installation of systems in the facility (Ex, HVAC and water systems)

Facilities Management Companies

Companies with the expertise to provide services such as housekeeping, grounds, and physical plant management to hospitality companies, schools, universities, and various industries

FF & E

furniture, fixtures, and equipment
Major portion of CapEx

R & M

Repair and Maintenance
Generally applied to costing procedures, R & M comprise the maintenance expenses incurred in the regular and unanticipated repair and maintenance of a property's physical assets

Replacment Reserves

Cash reserves (the amount usually based on a percentage of gross revenues) set aside largely for maintenance and repair needs. Management contracts commonly require that operators fund replacement reserves for FF & E

Routine maintenance

General upkeep of the property, recurs on a regular basis, and requires relatively minimal skill or training to perfrom
Activities such as grass cutting, leaf raking, etc.

Preventive Maintenance (PM)

inspections, lubrication, minor repairs or adjustments, work order initiation.
Performed using manufacturer's information
Performed to compl with code requirements, corporate requirements, and insurance standards

Guestroom maintenance

A form of preventative maintenance.
The inspection of number of items in guestroom
filter changes in aire conditioning units
minor lubrication

Scheduled Maintenance

preparing equipment for changes in seasons.
Periodically required to keep equipment operating at an efficient level
Replacement of equipment
Time and scheduling issues are important

Predictive Maintenance

Similar to preventive maintenance, but generally relies on and uses more sophisticated technological methods to increase operational life and target preemptive corrective actions.
Replaces older rule-of-thumb or fixed-time-interval based maintenance planning with diagnostic-based maintenance planning
Ex: infrared and ultrasonic testing of electrical equipment, vibration analysis of operating machinery, system monitoring

Reactive or emergency/breakdown maintenance

Most costly and disruptive form of maintenance since it is unscheduled and unavoidable.
Effect revenue
Have to pay overtime
Premium parts costs
Other costs associated with solution

Contract maintenance

- desire to minimize the commitment to staff on the payroll to handle these needs
- recognition that special tools or licenses are required to perform the work effectively
- a temporary staffing shortage
- need to deal with emergencies
- recognition that the complexity of the task is beyond the skills of the existing maintenance staff

Equipment data cards

Used for all major pieces of equipment to record facts and informaiton of importance for maintenance purposes

Room data card

Used to record information concerning an individual guestroom.
Basic characteristics of the guestroom and data on all major elements of the room
FF & E

Rooms checklists

Guestroom maintenance
Used for (preventive) maintenance usually list all the items in the guestroom and provide a brief explanation of the type of inspection, lubrication, or cleaning activity to be performed.
Also involves repair and replacement activities

Material Safety Data Sheets (MSDS)

Inform employees about potentially hazardous materials used in the workplace, how to work safely with them

Control schematic

Shows the relays, timers, fuses, switches, and basic wiring of controls with electrical equipment

Structural plans

allow the staf to determine the locations of key building structural elements

Mechanical plans

Identify flow patterns for air and water, control schemes, equipment and system interconnections, and basic operating parameters

Electrical plans

Information about circuit capacities, wire sizes, circuit connections and routing, emergency power circuits

Key provisions in drafting a maintenance contract (outsourcing)

- Insurance - contractor has adequate insurance, specify the type and limit of coverage, property owner should be a named insured on the contractor's policy
- Term - contract for a specific term, no automatic renewal provision
- Cancelltion - right to cancel on agreement on short notice for lack of performance, etc.
- Contractor not an employee - contractor is not an employee
- No assignment of contract
- Specifications
- Contract fee - should be specific on the fees for the services named

Computerized facilities/maintenance management systems (CFMS/CMMS)

Computerized maintenance schedulin, recordkeeping, and archiving systems that streamline the "paperwork and dispatch" of maintenance and repair
Not only controls equipment operation and building comfort but also fir profection interfaces, security and electric power mangement
Improve productivity and provide for more complete records, also provide the basis for more knowledgeable and well-advised decisions up and down the chain of operation

Asset Manager

the planning and even the execution of CapEx at hotels is under the oversight of an asset manager, an employee of the owner who serves as a combination of owner representative, investment manager, financial and marketing consultant, and project manager

Facilties Benchmarking

Developing numerical (and other) standards that allow comparison of a given facility to itself and to other facilities

Motivations for Environmental Concern

- economic considerations
- regulatory issues
- market factors
- social responsibility


A segment of tourism market that places high value on the "environmentality" of a desitnation

ISO 14000 standards

A set of environmental guidelines established by the International Organization for Standardization that are recognized as the global standard for environmental management. Certificiation by the ISO to the ISO 14000 standards is achknowledged in the industry as benchmark achievement

Coalition for Environmentally Responsible Economies (CERES)

Developed Green Hotel Initiative
An environmentally conscious group that is urging its corporate members to include environmental considerations when making lodging purchasing decisions


any materials that destroy other materials by chemical reaction. when in contact with huma tissues, these substances may cause burns and destroy tissue

environmental imapct statement (EIS)

a document stating the effect a planned construction project will have on the surrounding community


any substance capable, by chemical reaction within itself, of producing such a temperature, pressure, and speed to cause damage to the surroundings


any substance that can be easily ignited by sparks or flames and cause fires

hazardous substances

any substances that have the potential to damage health or property


any substance that contains viable microorganisms and their toxins, capable of causing disease

land-use planning

a facilities development function in which careful and appropriate planning and mangement is applied to existing real property, structure,s and natural resources to preserve the cultural and social fabric of surrounding community


a method of transforming waste (such as that generated in kitchens) from solid form into a type of slurry by adding water and processing it through a pulping machine. The pulping machine acts much like a household garbad disposer, grinding the waste, pressing out the water, and expelling it into a holding bin
Garbage volume is reduced by 75-80%, which lowers disposal costs


separating certain items of refuse for eventual shredding or melting to their basic materials to be used to make new products


the practice of using items more than once, thereby substantially reducing trash and throwaways


a method of tracking and recoding energy usage by department or function such that usage can be accurately matched to specific operations (such as the laundry) and charged to those operations (if desired)
Relatively inexpensive during new construction
More common as operations conduct more outsourcing of operations such as F&B


a broad approach to environmental consciousness in which environmental issues are addressed within the context of economics, ecology, and ethics

Social responsibiltiy

the recognition by hospitality owners and managers of an obligation to protect the environment for their associates, guests, and communities


any substance that causes damage to health, physical or mental impairment, or death when inhaled, ingested, or absorbed

waste minimization

an approach to environmental good practice nvolving reduction, reuse, recycling, and waste transformation to minimize the amount of waste disposed and the cost of its disposal. Its ultimate goal is to ensure that disposal is done in an approved and environmentally suitable manner

Waste transformation

the practice of converting waste products into another usable form, such as incinerating burnable items and capturin the heat energy thus created to generate power


The majority of water leaving a hospitality operation (exceptions being cooling tower water lost to evaporation and irrigation water for the grounds)

Hotels w/ on-site laundry operations showed laundry water consumption ranging from _____% of total water usage


Water costs are composed of 2 components

Disposal (potable water and sewer)

Deduct Meter

A device that submeters water that is used by a prop. but does not flow into the sewer system so that i can be deducted from the sewage disposal bill.
The high disposal of water highlights the potential benefits of using a deduct meter on water supply to cooling towers, irrigation and to the swimming pool - can constitute 20-50% of more of a facility's total water usage

Storm sewage system

Disposal of rainwater.
Flows directly to som discharge location where the rainwater enters a river, lake or other drainage system

Sanitary sewer system

the removal of waste products from the facility
System carries waste products to a sewage treatment facility


Suitability for drinking.
Examining the presence of bacteria, nitrates, trace metals and organic chemicals
Others not directly related are color, odor, taste, clearness, mineral content, and acidity/alkalinity

Treatment program for Legionnaires' Disease

A profesionally designed and implemented cooling tower treatment program is among the best preventive tactics available for this disease

What type of fire heaters for indoor pools have been implicated in incidents of what poisoning?

Directly fired heaters
Carbon Monoxide poisoning

Heat pumps

Have been increasing in use as a means to control the interior environment around indoor pools, conserve pool water and chemicals, and reduce energy costs.
Overall effect is to reduce the humidity around the pool. This helps reduce corrosion, odor, and other problematic effects of humid, chloorine-laden pool air

Reuse Water is also known as what?

Gray water

Backflow preventer

a valve used to prevent water rom flowing form one subsystem to another - for example, to prevent water standing in a hose from re-entering the building water system

Directly fired water heater

the mst commonly found type of water heater, in which a fuel is burned and heat is transferred to the water. For all fuel sources, but electricity, a source of combustion of air is required; the combustion gases are sent up a flue. May have integral or separate storage tanks

Grease separator

A device used to capture grease in wastewater before it enters the sewer system. Also called a grease trap

Heat pump water heater (HPWH)

a water heater that extracts heat frm the air within a space, the outside air, or a water source and, using a refrigeration cycle, transfers it to the water being heated

Indirectly fired water heater

a water heater in which steam enters a coil or heat exchanger that transfers heat from the steam to the water


a grouping of rooms in sets of 2 by floor and vertically within the guest-room blocks that share piping for the supply of potable water and removal of waste


a water-filled section of pipe that keeps sewer gases and odors from entering the building

Water softening

the removal of calcium, manganese, and iron from the water supply

combined heat and power (CHP)

a usuable thermal output and electrical power are produced.
done mostly w/ an engine generator - heat from engine is used to heat water or as a heat source


Measure of the electrical potential provided by the utility (often compared w/ water pressure in a water system)


the rate at which an alternating current (AC) power supply alternates the direction of the current flow
(60 hertz, cycles per second)


the number of phases (which is usually one or three) refers to the number of energized or "hot" wires in the electrical supply


The ampere capability of the service refers to the maximum current flow (measured in amperes) for the system
Defined by the wire size feeding the building
One ampere represents 6.251 x 10^8 electrons per second passing through a cross section of the conductor


Deliver electricity to various portions of the building and to major equipment


devices that change (step up or step down) the voltage of the electrical supply
(larger facilities - operated at 208/277 or 480 volts)

Emergency transfer switch

serves to detect the interruption of utility power. When utility power is interrupted, the switch activates the emergency power source and transfers the emergency loads to this source

Older electrical transformers

These that contain oil as an insulating/cooling medium may contain PCBs (polychlorinated byphenyls). If a fire occurs involving these, dangerous chemicals can be produces


More common in older properties, are designed and sized to fail when the current in the circuit in which they are installed is too great for the circuit capacity. Failure indicates an existing safetly problem due to a short circuit or a potential safety problem due to wire overloading

Ground Fault Cirucuit Interrupter (GFCI)

A type of circuit breaker.
Provides a much higher level of protection than a standard circuit brekers, largely designed to protect ppl.
Installed in bathrooms, outside receptacles, swimming pools, spas, etc.

Distribution Panels and wiring

check temp. rise in wires, terminal blocks and motors.
Values of 15-25 F above ambient may indicate potential problems, while 45 - 90 F above ambient warrant immediate attention

Creep and aluminum wiring

Some older hotels may have aluminum electrical cables.
Aluminum is a good conductor of energy and less expensive than copper.
Aluminum suffers from physical phenomenon called 'creep' - Cold flow that causes connections, especially those using set screws or crimps, to loosen.
loose connections cause temp buildups

Transients in electronic equipment

high voltage, short, fast electrical pulses that can destroy electronic equipment instantly or over a period of time

Sags in electronic equipment

may cause motor heating and disk drive problems

Surges in electronic equipment

May cause incandescent lights and computer circuits to burn out

There are various possible solutions to electrical quality problems:

- wiring-intensive solutions such as wiring upgrades, grounding/bonding upgrades, and isolation of equipment loads
- equipment- intensive solutions such as surge suppression equipment voltage regulators, isolation transformers and battery back up units

Battery back up units and SPS or UPS

These units may be either Standby Power Supply (SPS) units or Uninterruptible Power Supply (UPS) units
SPS - switch from utility power to battery backup when the utility power is interrupted, monetary power outage
UPS- - is always online. Power from the utility feeds the UPS, which stores this power in batteries and supplies the equipment w/ a "clean" power source using the batteries and electronics that create AC power

Multimeter - Electrical Maintenance Equipment

a device capable of measuring volts, ohms, and current over a wide range

wall receptacle analyzer - electrical maintenance equipment

used to deterimine the condition of wall outlets

hydrometer - electrical maintenance equipment

a device that measures specific gravity and is used to check the charge level in batteries

Energy charge

Based on the amount of electricity used by the customer over the billing period
Meausred in kilowatt-hours
A commerical establishment can use tens or hundreds of thousands of kwh in a 30-day period

Demand charge

Based on the business' highest rate of energy usage
Measured in kilowatts
Determined by breaking up the billing cycle up into a series of 15-30 minute windows and measuring the energy usage in each window. Bill is then calculated using the highest average rate of energy usage or demand in these windows during the billing period

Ratchet clause

high demand during one month can result in a high demand charge for the next 11 - 12 months

National Electrical Code (NEC)

a publication of the National Fire Protection Association that details recommended safety code standards for electrical systems

Costs associated with facilities

- Development and construction
- operating
-Renovation and modernization

Energy or utilites costs include

- electricity
- fuel (gas, oil, propane)
- steam
- water, including sewage

Hospitality companies usually allocate _____% of total revenue for renovations and replacements. In reality it is often closer to _____


Budgeting for Maintenance and Property Expenses

POM expenses should have separate categories for salaries and wages, benefits and maintenance expenses.
Major maintenance expenses should have their own line items.
Energy costs should be broken down by utility type.
Actual vs. Budgeted figures should be compared monthly at the very least.
Benchmarking can be utilized for industry comparisons.

Sustainability and the 3 E's

Economics > power and cost savings, reduce maintenance costs, recycling, customer awareness leads to increased revenues
Equity > can we see the value?

Energy represents ____% of lodging revenues and ___ of restaurant revenues


Supplies of fresh water represent less than ____% of the total amount of water on the Earth


Hotels can use from ______ gal. per room per day
(36,500- 73,00 per year)

100-200 gallons

Restaurants use _____ gallons per customer per day
(2900 - 3600 gallons per year)

8-10 gallons

Wastewater disposal is typically a component of the operations _____ bill


Hazardous materials include:


hazardous waste - 3 items of concern

1. Gasoline or fuel leaks
2. Polychlorinated biphenals (PCBs) from transformers or electrical devices
3. Asbestos

hot water can cost ___ times the cost of water


Annual water usage in the US lodging industry ins in excess of ____ billion gallons

180 billion gallons

Average of cost of water is $____ per ____ gallons

1000 gallons

____% of the cost of water is typically waste disposal


Water provided to a subsystem may need to be...

softened, filtered, or heated

Pipes to carry the water throughout the property can be made of

-galvonized iron
- plastic (pvc, cpvc)

Recirculation pumps

are often used to ensure hot water is always available to rooms

Plumbing traps

are required to vent obnoxious and potentially dangerous sewer gases.

Mixing valves

are suggested to prevent scalding and to provide the correct mix of hot and cold water. They are required in some locales.

Water Heating - dishmachines and sanitation

Food service facilities usually require water of 180°F (82°C) for sanitation purposes.

Chemical sanitizing dishmachines still require 135°F in order to remove fats.

Water heating options

Electric hot water heating is the most expensive.
Natural gas and high efficiency heat pumps are the most cost effective.
Solar water heating may be cost effective in some regions

Water quality and pH of swimming pools

Water must be tested several times daily
pH should be between 7.2 and 7.6, which is slightly alkaline.
pH is controlled with muriatic acid and sodium bisulfate.
pH testing should be done before chlorine is added to the system.

Pool heating

Heated pool water should be maintained between 70-80°F (21-27°C).
Air in indoor pool facilities should be maintained at between 75-80°F and 50-60% relative humidity.
Pool water can be heated by directly fired heaters, indirectly fired heaters or by heat pumps.
Solar pool heaters are becoming popular

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions and try again


Reload the page to try again!


Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

Voice Recording