Hotel FF&E Costs: Tips for Maximizing ROI

Renovating or upgrading a hotel’s furniture, fixtures, and equipment (FF&E) is a significant investment—so budgeting properly for your hotel FF&E costs is critically important. A new look can enhance guest satisfaction, elevate your brand, and drive long-term revenue. But without a strategic budget, costs can quickly spiral, eating into your return on investment (ROI).

Savvy hotel executives know that balancing quality, aesthetics, and durability while keeping expenses in check is the key to a successful renovation. In this guide, we’ll break down essential tips to help you maximize your FF&E investment, as well as a few common mistakes and how to avoid them. That way, you’ll get a fresh, modern look for your hotel—without unnecessary overspending.

What Are Typical Hotel FF&E Costs?

Refreshing your FF&E can go a long way to giving your space a great new feel and add value to your guest experience—without a complete overhaul. So learning about what constitutes hotel FF&E costs can help you approach your budget planning with a better mindset.

Here are the items that are typically included in this category, organized by room:

Common Areas: Sofas, side tables, lamps—any furniture or fixture you might see in a lobby falls into this zone. Guest Rooms: Headboards and dressers are key elements, as well as wardrobes and any other furniture that fits your hotel’s style. Bathrooms: This area includes lighting, artwork, and vanities. Illuminated mirrors also add a great touch. Conference Rooms and Business Centers: Tables, desks, and chairs are essential here to facilitate productivity. Outdoor and Workout Spaces: Think sun beds, umbrellas, and other fixtures to dress up your poolside, al fresco dining, or hotel gym.

Besides the products themselves, a full budget will also include the other associated costs of new FF&E. This includes design, shipping, materials, and labor—including where the items are manufactured. Making sure to account for all these areas is a great first step for keeping your budget in check.

5 Tips for Budgeting Hotel FF&E Costs

Of course, understanding what you’re paying for in your hotel FF&E costs is only the beginning. Like with most major investments, there are a number of best practices to follow that can maximize your ROI. This will give your hotel a beautiful, enduring look that will keep guests returning again and again.

With this in mind, let’s take a closer look at five key tips to help you get the most out of your investment.

Plan Ahead

As stated above, upgrading your hotel FF&E constitutes a major undertaking and can be a costly investment. No matter how big or small your project is, it’s always a good idea to do your research and plan ahead. That way, instead of having to hustle because your furniture is broken down and past its prime—or you’re out of functional pieces—you have the time to do the job right the first time.

Furthermore, creating an itemized budget and sharing it with your interior designer is a great strategy. With proper communication, your team can work together to meet your needs and make the most out of what’s available. It’s also helpful for confirming quantities and setting expectations.

Keep Some “Attic Stock”

Another way to plan ahead and save on your hotel FF&E costs is to create a backup plan. Many hotels keep aside about 1% of their FF&E in the “attic” (storage) so they can replace broken or damaged items in a pinch. That way, they avoid having to reorder, which can be problematic if there isn’t much left in stock or they have to pay for materials, labor, and shipping all over again at a small scale.

Thus, integrating attic stock into your budget is a strong strategy for thinking ahead and keeping future costs down.

Balance Quality & Cost

Like with most investments, one of the biggest questions is how to prioritize quality and cost. Inexpensive options can be tempting for their lower up-front investment, but can lead to more repair and replacement costs down the line. On the other hand, you don’t want to burn through your budget too quickly or without strategic planning—this could impact your overall ROI. Ultimately, a balanced approach is the best way to optimize your hotel FF&E costs.

Specifically, experts recommend spending more on items that guests use daily, like chairs and bed bases, rather than items that break easily or can be quickly refreshed—like pillows, accessories, and art. After all, it’s less likely that you won’t be able to find replacement pillows, but a custom headboard might be more of a challenge. Bankroll your success by balancing quality and cost in the right places—and you’ll maximize your long-term ROI.

Figure In Maintenance Hotel FF&E Costs

The hotel FF&E costs don’t stop once your hotel renovation is complete. Remember to budget for maintenance to keep your assets nice for as long as possible.

One major aspect to consider here is routine wear and tear. Especially for hotels with high traffic, routine usage will inevitably lead to visible damage, even when used appropriately. Some items may need regular professional cleaning, while others—like casegoods—eventually require refinishing.

The other side of the maintenance coin is preventative maintenance. Of course, there are many hotels that handle this on their own when it comes to FF&E. Even so, it’s best to factor these costs into your budget to keep it in check. Deep cleaning, fabric treatments, tightening furniture joints, and lighting maintenance can all be accounted for.

Prepare for the Unexpected

Although the future is impossible to predict, adding contingencies to your budget is always a smart plan. Shipping issues, new tariffs and legislature, pricing changes—there are plenty of aspects of hotel FF&E costs that are subject to change. By creating a built-in buffer or staying flexible, you’ll better ensure that unexpected costs won’t derail your renovation.

Thus, the question remains: how much of a contingency should you include in your budget? Lauren Gerchakov of Lang & Schwander Hotel Interiors says, “As a designer, I always tell my clients to carry a 15% contingency in their budgets. You never know how the plans will adjust, if the brands will require something extra, or God forbid prices change like they did during COVID. This one tactic has helped more than a few clients avoid a dramatic VE (value engineering) phase later in the project.”

3 Common Hotel FF&E Budgeting Mistakes to Avoid

These five guiding tips will certainly help you start off on the right foot for your hotel FF&E budget planning. However, you’ll also want to steer clear of the three most common mistakes that executives make during this critical part of the process. Avoid the following pitfalls for a more successful renovation.

Buying Cheap & Paying Later

While it’s tempting to go for something inexpensive, you typically get what you pay for. And that means if you purchase inexpensive hotel FF&E, costs may go up down the road when you have to repair or replace things repeatedly. Invest in good structure and quality materials to get the best ROI.

Another tip for maximizing your investment is to opt for quality of experience over quantity. For example, purchase a single quality chair for a guest room rather than buy a lower-quality chair and ottoman from an inferior manufacturer. By opting for the more robust option, you’ll still guarantee a great guest experience—and you’ll double down on your investment by avoiding having to replace both furniture pieces sooner.

Failing to Consider All Hotel FF&E Costs

As previously mentioned, there are many different aspects of hotel FF&E costs. It’s not just buying a bunch of matching beds and sofas. Be sure that your team takes into account shipping and labor. Financing itself can be a factor, as well as taxes, tariffs, and duties. All these elements should be part of your hotel FF&E budget—so make sure to consider them in your planning phase.

Not Working with a Trustworthy Company

The ultimate budgeting nightmare comes from working with an unreliable company. That’s why choosing a reliable partner—like Lang & Schwander—is one of the best ways to optimize your ROI. We’re in the business of furnishing hotel rooms with stunning, durable, and unique FF&E. From logistics and interior design to manufacturing and installation, we’ll partner with you to produce a look that is truly one of a kind… and keeps your guests coming back for more.

Learn more about our approach and start a conversation with us today. Together, we can optimize your hotel FF&E costs and help you get the most out of your investment.

Get the Most Out of Your Hotel FF&E Costs with Good Budgeting

Budgeting for hotel FF&E costs can be a tricky process. Thus, it requires careful planning, smart spending, and a focus on long-term value. By accounting for all expenses, following the advice in this article, and working with a trusted partner like Lang & Schwander, you can keep costs in check without sacrificing style or durability. This will ensure a smooth renovation that enhances guest satisfaction and maximizes ROI.

Ready to transform your hotel’s look while staying within budget? Contact us today to bring your vision to life with an expertly-crafted FF&E solution.