List each major furniture, fixture and equipment item, its replacement cost and how often it typically needs replacing. The tool calculates your required annual reserve, and translates it into a per-room-night rate you can build into your pricing.
| Item | Replacement Cost (all rooms) | Cycle (years) | Annual Reserve |
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Rather than facing a large, unplanned refurbishment cost every 5–10 years, setting aside a small amount per room-night throughout the cycle smooths the cost into predictable, budgeted contributions — the same principle larger hotel groups apply through an "FF&E reserve" of typically 3–5% of revenue.
Mattresses and soft furnishings: 5–7 years. Carpets and flooring: 7–10 years. Bathroom fit-outs: 12–15 years. Full room refurbishment (decor, furniture): 8–12 years. These vary by usage intensity and quality specification — use your own experience where you have it.
The per-occupied-room-night figure from this tool is a genuine cost of doing business, in the same category as housekeeping or utilities. Building it into your rate structure (rather than treating refurbishment as a one-off "surprise" cost) protects margin and avoids sudden, unplanned rate hikes to fund a refit.
Where possible, hold the reserve in a separate account rather than leaving it in general operating cash — it reduces the temptation to spend it on short-term needs and ensures funds are genuinely available when the refurbishment is due.
This calculator provides estimates based on the figures you enter. JWBIZ Ltd accepts no liability for financial planning decisions made on the basis of this tool.