Efficient maintenance and operation of a hotel property are key to preserving its value and delivering consistent guest experiences. The Property Operation and Maintenance (POM) department covers the costs necessary to maintain the physical infrastructure and all related systems.
Labor Costs and Related Expenses
This section includes all personnel-related expenses for POM staff:
1. Salaries and Wages
- Regular Pay: Base pay for standard work hours.
- Overtime and Shift Differential: Compensation for extended hours or irregular shifts.
- Temporary Staff: Wages paid to temporary workers through the property payroll.
When employees temporarily assist other departments, their salaries should be recorded in the receiving department.
2. Service Charge Distribution
Service-related fees distributed through payroll to POM staff.
3. Contracted, Leased, and Outsourced Labor
Costs paid to third-party vendors for labor services, including shared staffing agreements.
4. Bonuses and Incentives
Includes both contractual and discretionary bonuses, as well as performance incentives.
5. Payroll-Related Expenses
- Payroll Taxes: Employer-paid contributions to government programs.
- Supplemental Pay: Vacation, sick leave, holidays, and severance.
- Employee Benefits: Health insurance, pensions, staff meals, and union dues.
Total Labor Costs and Related Expenses
Sum of all labor components. Percentages are based on Total Operating Revenue.
Other Expenses
Expenses necessary for physical upkeep and compliance:
1. Building
Repairs and maintenance for interiors and exteriors, including signage and locksets.
2. Cluster Services
Shared service costs between hotels in a region.
3. Contract Services
External services such as pest control or landscaping.
4. Corporate Office Reimbursables
Salaries and travel expenses of corporate maintenance staff.
5. Dues and Subscriptions
Professional memberships and publications for the POM team.
6. Equipment Maintenance
- Electrical and Mechanical Equipment
- Elevators and Escalators
- Kitchen, Laundry, and HVAC Equipment
7. Engineering Supplies
Maintenance materials and tools.
8. Grounds and Landscaping
Parking lot repairs, snow removal, and garden upkeep.
9. Painting and Wallcovering
Includes supplies and contractor fees.
10. Furniture and Fixtures
Repair costs for guestroom and public area furnishings.
11. Plumbing
Maintenance of bathroom and kitchen plumbing systems.
12. Pool Maintenance
Costs for upkeep of swimming pools.
13. Training
Training materials, certifications, and instructor fees (not wages).
14. Travel and Entertainment
- Meals and Entertainment while traveling.
- Other Travel: Airfare, hotel, conferences, etc.
15. Uniforms and Laundry
Costs of purchasing, repairing, and cleaning uniforms.
16. Vehicle Maintenance
Repair of hotel-owned vehicles.
17. Waste Removal
Trash disposal, recycling, and dumpster rental.
Total Other Expenses
Calculated by summing all items above. Percentages are based on Total Operating Revenue.
Total Property Operation and Maintenance Expenses
Final expense is calculated as:
Total Labor Costs and Related Expenses + Total Other Expenses
This total appears under Undistributed Operating Expenses — Property Operation and Maintenance on the Summary Operating Statement.
By understanding these detailed components, hotels can control costs and prioritize investments that preserve both the asset and guest satisfaction.
