Capital expenditures (CapEx)

← Cash Flow Profit From Operations

Throughout your time as an owner, you will do major repairs and improvements on a regular capital expenditure (CapEx) cycle. CapEx will occur due to wear and tear, obsolescence, regulatory requirements such as ADA, at the behest of your brand as their standards flex, changing technology, market demands for product change, and in response to unexpected events at the hotel (sometimes there are water leaks, things break, stuff happens…). Some repairs and improvements can be completed by property management and your maintenance team and you will engage general contractors for others.

As a hotel owner, capital expenditures (CapEx) will be a key part of your investment strategy and an ongoing creative opportunity.