Dictionary of Business Terms: Furniture, Fixtures, and Equipment (FF&E)
Furniture, Fixtures, and Equipment (FF&E)
a term frequently found in the ownership of a hotel or motel. This type of property wears out much more rapidly than other components of a hotel or motel, so an owner or prospective buyer needs to establish the condition, cost, and frequency of replacement of FF&E.
Dictionary of Real Estate Terms: Furniture, Fixtures, and Equipment (FF&E)
Furniture, Fixtures, and Equipment (FF&E)
a term frequently found in the ownership of a hotel or motel. This type of property wears out much more rapidly than other components of a hotel or motel, so an owner or prospective buyer needs to establish the condition, cost, and frequency of replacement of FF&E.
Example: In measuring the profitability of a hotel, a real estate appraiser subtracted 3% of total revenues to provide for the eventual replacement of FF&E. The useful life of FF&E in a hotel was estimated at 7 years.
