HRAD 3473-Week 1 Notes
HRAD 3473-Week 1 Notes HRAD 3473
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This 3 page Class Notes was uploaded by Nichole Pike on Saturday August 20, 2016. The Class Notes belongs to HRAD 3473 at Oklahoma State University taught by Ryan in Fall 2016. Since its upload, it has received 107 views. For similar materials see Mechanical Equipment and Facility Management in Hotel and Restaurant Administration at Oklahoma State University.
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Date Created: 08/20/16
08/18/16 HRAD 3473 CHAPTER 1 THE ROLE, COST AND MANAGEMENT OF HOSPITALITY FACILITIES DISCLAIMER: THESE NOTES WERE TAKEN FROM WHAT WAS RETAINED FROM CLASS LECTURE AND TEXTBOOK READINGS. THESE ARE IN NO WAY COMPREHENSIVE, BUT SHOULD BE USED IN CONJUNCTION WITH CLASS MATERIALS PROVIDED BY THE PROFESSOR. KEY TERMS Americans with Disabilities Act (ADA) provides accommodations for all types of disabilities, enacted in 1990 Facility Management Companies those with expertise in services (variety of services offered) Franchise Agreement able to conduct business under another ex. international franchiseone location is owned by smaller parties Management Contract ex. corporate hotelgeneral manager operates, but corporate keeps financial responsibility Capital Expenditure (CapEx) replacements, repairs, renovations, maintaining safety and ADA requirements Furniture, Fixtures and Equipment (FF&E) large portion of capital expenditure Property Operation and Maintenance (POM) after construction; ongoing costs in order to operate and maintain Replacement Reserves that which is set aside for repairs and maintenance or FF&E Preventative Maintenance regulatory maintenance done to extend the lifespan RESPONSIBILITY OF FACILITY MANAGEMENT Safety and Security ex. Repairs, liability, and elements Legal and Regulatory Compliance ex. Compliance with ADA Service in hospitality; service is 95% perception both in practice and design, facility management is service oriented Cost Control most maintenance companies do not create revenue; instead they are an expense to the company Asset Management protecting the physical assets of the company ex. Physical building In the hospitality industry, there are a variety of titles and responsibilities from general facility management to housekeeping. In some fields and organizations, technical training and backgrounds may be required. PURPOSE OF FACILITIES Provides aesthetic appearance safety identity or brand ROI’s (Return on Investment)maximization may or may not manufacture for other businesses Generates revenue MANAGEMENT CONTRACTS AND FRANCHISE AGREEMENTS some contracts require setting aside percentage of revenue should be completed on a consistent timetable rentals or leases protect owners minimum standards are set all part of a thinking process PRODUCT QUALITY AND REVENUE Direct relationship (moves the same direction) between quality and revenue ex. Higher quality means higher revenue Inverse relationship (moves in opposite directions) ex. More defects mean less revenue ASSOCIATED COSTS Development and Construction (Phase I) human life cycle ex. development Property Operation and Maintenance (POM and Utilities) (Phase II) human life cycle ex. birth ongoing costs begin to occur ultimate goal: revenue greater than expenses Renovation and Modernization (Phase III) continuous process human life cycle ex. cosmetic surgery CapEx Replacement reserve ex. saving money for next car There is no distinct line where POM ends and renovation begins. It is often overlapping
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