For “Furniture, Fixtures & Equipment”, which roughly covers the entire furnishing of a hotel or residential compound. Generally, this represents the moveable objects that are placed within the property and could possibly be removed by the tenant.
Based on category, FF&E constitutes approx. 12-16 % of total investment. FF&E is a value driver that should not be underestimated; considering the interior of a hotel reveals within which category it is positioned. Even more important, is the comfort factor, which is decisive for whether a guest accepts an establishment, comes again and even recommends it to others. It is thus surprising that FF&E represents a “black box” in negotiations with operators and project realization for the project developer. Differing perceptions regarding which positions are included in the FF&E budget lead to uncertainties.
