Hotel Renovation & Purchasing Company
FCM Hotels is experienced at purchasing and renovating hotels – turning each into a valuable asset with high profit potential.
Purchasing is necessary for the proper day-to-day functioning of hotels and resorts, but it is also a key component of expense control. At FCM Hotels, we review vendors and costs monthly to ensure the lowest possible expenses for our hotels, and we also negotiate company-wide vendor pricing wherever we can to find the best prices possible.
Capital projects are absolutely crucial, as they can make or break any hotel. We have extensive experience in managing capital expense items and project purchasing. We also take special care when choosing between repairing and replacing capital expense items, analyzing the return on investment of capital dollars during our decision-making process. At the essence of our job, we ensure that hotel renovation projects are done with a cost-effective approach.
Capital Project Management Practices
Each of our hotel’s specific capital needs are determined by their operations and management staff as well as franchise requirement needs. As part of the capital budgeting process, we combine one-year and long-term capital budget plans which are presented for approval at our annual investors’ meetings. We also strive to keep our investors apprised of future major renovation projects and the proposed timeframes for these projects as well.
Once our capital project budgets are approved, budget items are put out for bid, and decisions are made based on overall cost as well as quality. We strongly encourage all of our clients to establish a capital reserve fund and to set aside funds each month from operations to be available for routine capital needs.