Need Help Calculating your Hotel Maintenance Costs?

Jun 14, 2019

Kelly Potter

Kelly Potter

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Hotels have thousands of assets. These assets are inspected, repaired, or replaced by several engineers potentially multiple times a day. Begin understanding your maintenance cost with a hotel maintenance calculator. It is widely known that preventive maintenance plans can preserve costs as well as increase profit by reducing unnecessary maintenance inspections. The best way is through an EAM CMMS system.

This article discusses a couple critical areas that could be impacted by implementing an EAM CMMS system. These areas include: energy, employees, documents, and management.


Energy usage in commercial buildings accounts for more than 25% of operating costs. For example, hotels spend around $1 million/year on utilities (gas, electric, and water).

On average, America’s 47,000 hotels spend $2,196 per available room each year on energy. This represents about six percent of all operating costs. Through a strategic approach to energy efficiency, a 10% reduction in energy consumption would have the same financial effect as increasing the average daily room rate (ADR) by $0.62 in limited-service hotels and by $1.35 in full-service hotels.

Source: EnergyStar

Document Storage and Handling

Document management is one of the most overlooked expenses for organizations. Organizational documents come from asset purchases. Each purchase has a contract, warranty, blueprint, schematic, or all of the above.

Companies spend $20 in labor to file a document. $120 in labor to find a misfiled document, and $220 in labor to reproduce a lost document.

Source: Coopers & Lybrand

Document handling is another expense that is often overlooked or miscalculated. These expenses include storage, copying, searching, or retrieving documents. It is difficult to determine the amount of time spent on each of these activities. Fortunately, companies have already done research relating to document handling and broke out the costs:

  • Services, supplies and Space: 11%
  • Space and equipment: 19%
  • Labor: 70%

A CMMS document management tool can help reduce costs associated with asset management. Any document linked to the system can be scanned and attached to an asset. Documents can then be retrieved or sent with a work order by clicking a button.

U.S. managers spend an average of four weeks a year searching for or waiting on misfiled, mislabelled, untracked, or lost papers.

Source: AIIM, Forrester, Star Securities, US Department of Labor

Costs differ depending on the industry, number of employees, labor costs, property size and much more. So, how does your facility track its assets and their associated costs?

To get a more in-depth look at your spending costs and potential savings, check out our free Hotel ROI Calculator.

Calculate Your Hotel Maintenance Costs

Use our energy, labor, document, and management calculators.

Kelly Potter

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