Hotel Loans in Delaware, OH: Guest Room Furniture, Signage and Booking Software

Guest rooms wear out on a schedule of their own. Case goods, the dressers, nightstands, desks and headboards, take daily use; mattresses and box springs are slept on every night; linens and towels are replaced by the par level. Each needs a different kind of funding.

• Case goods: equipment financing or a term loan, priced per room from the supplier quote.
• Mattresses and box springs: equipment financing, bought in sets for a block of rooms. Heating and cooling units are building systems and outside this site.
• Linens, towels and guest supplies: a working capital loan, since they have no resale value.
• Delivery and installation: priced into the supplier quote so the contract covers the work.

Illustration only, invented figures: a 24-room motel replaces its case goods at $3,150 a room ($75,600) and adds a new mattress and box spring set to each room at $1,180 a set ($28,320). Financing the $103,920 total over 60 months at a 9.5% annual rate sets the monthly payment at $2,182.51. In this example the payments sum to $130,950.60, $27,030.60 beyond the cash price.

Lobby spending here means movable items: new lobby furniture, lamps, a freestanding front desk and rugs; wall finishes and built-in work are property work outside this site. On-site laundry is equipment: commercial washer-extractors, stack dryers and a folding table, sized to the room count. The front desk and housekeeping payroll that runs while the work goes on is a cash cost.

Staffing is a large line for hotels here. For 2023 (CBP), annual payroll at traveler accommodation establishments in Delaware County, OH came to $19.5 million, and the March 2023 pay period showed 709 paid employees, or about 26.3 per establishment by our arithmetic.

Motels replace items in smaller pieces. Flat-screen room televisions and wall mounts, mattresses and box springs, and a property management system (PMS) with an online booking engine can each be funded on its own schedule. A replacement sign face for the motel sign, made by a sign company, is a fixture with a quote of its own.

• Room televisions and mattresses: equipment financing, quoted per room.
• Booking software and PMS setup: working capital, since software subscriptions have no resale value.
• Signage: a sign company quote for the sign face and lighting, financed as equipment or through a term loan.
• Channel manager and payment terminal fees: listed as monthly costs in the request.

County Business Patterns placed 4 establishments under Traveler Accommodation (NAICS 7211) at a ZIP 43015 address in 2023.

A room-by-room upgrade through this site covers movable items: headboards, nightstands, desks, chairs, lamps and mirrors, swapped a block of rooms at a time. Flooring, bathroom vanities and paint, work on the building shell or the grounds, and any purchase or refinance of the hotel property are property work outside this site.

Illustration only, invented figures: a hotel takes 6 rooms out of service for 9 nights each while headboards, nightstands and desks are swapped. The supplier bills $2,350 a room, $14,100 for the block, and at an average of $96 a night the hotel gives up $5,184 of room revenue while the work is done. In this example the block costs the hotel $14,100 in cash out and $5,184 in sales it did not make.

A term loan fits the supplier's bill for a planned block of rooms. The room revenue given up while the rooms are out of service is a cash gap, which a working capital loan or a line of credit can carry until the rooms are back in service.

In hotel budgets, FF&E (furniture, fixtures and equipment) names the movable contents of the hotel, apart from the structure. Beyond the guest rooms, it includes lobby furniture, the breakfast bar and its equipment (a waffle station, a juice machine, a refrigerated display case).

• Lobby furniture and breakfast bar equipment: equipment financing or a term loan on the supplier quotes.
• Waffle station and refrigerated display case: equipment financing, one quote for the pair.
• Breakfast food and supplies: a working capital cost, kept off the equipment contract.

Small properties are part of the count as well: the 2024 Nonemployer Statistics list 80 nonemployer establishments under Traveler Accommodation (NAICS 7211) in Delaware County, OH, with $4.6 million in receipts. Breakfast and food service costs are covered on the restaurant funding page, county figures on the Delaware, OH funding page, and other trades on the industries page.