1. FF&E and OMA
Randy Weinstein

2. What is FF&E?
Furniture
Fixtures
Equipment

3. “FF&E”
What types of businesses or industries do you think of when you hear this term?

4. Hotels and Hospitality
Major Brand Hotels
Boutique Hotels/Pubs
Resorts/Convention Centers

5. Retail Markets
Clothing/Fashion
Grocery/Department

6. Unique/Niche
Casino/Gaming
Restaurant
Medical/Hospital

7. Hotels and Hospitality
Focus Market
Hotels and Hospitality

8. Recent Trends in US Market
Hotels and Hospitality
Recent Trends in US Market
Consistent growth since 2009
Hotel construction up 14% in 2015 vs 2014
3443 hotels under construction
412,878 rooms
“2015 is poised to be the best year ever in the hotel industry” – Robert Rauch, HSA

9. Recent Trends in US Market cont.
Hotels and Hospitality
Recent Trends in US Market cont.
Growth pipeline is “Breaking Out” in US markets
Expected to peak in
22 month average time to mitigate through the pipeline in order to be considered “new” supply

10. Hotels and Hospitality
Top Growth Cities in US
New York
Miami
Houston
Chicago
Las Vegas
Los Angeles
Washington DC
Seattle
Dallas

11. Recent Trends in European Market
Hotels and Hospitality
Recent Trends in European Market
Growth pipeline has declined approximately 9% in 2015
However, occupancy is rising through 2015
Occupancy in some regions over 80%
Occupancy drives profitability

12. Hotels and Hospitality
Top Growth Cities in EU
Dublin
Porto
Madrid
Amsterdam
London
Barcelona
Rome
Edinburgh
Prague

13. Other International Notes
Hotels and Hospitality
Other International Notes
Canadian tourism grew by only 1.5% in 2015
Canada is investing over $30m directly into its tourism industry
Investing billions into its transit, infrastructure, travel and labor markets over next several years
Promoting Canada’s 150th anniversary in 2017

14. Other International Notes cont.
Hotels and Hospitality
Other International Notes cont.
Australian new hotel growth is declining
Revenue growth is increasing—up 2.4% in
Indication that the Australian market is consolidating
Inbound tourism projected to increase 3.9% through 2019

15. Hotels and Hospitality
Opportunities other than NEW Construction
The average major flag hotel will remodel
every 4 and 7 years
“Soft” remodel every 4 years
Furniture
Window treatments
Artwork
“Hard” remodel every 7 years
EVERYTHING goes

16. Where do you look for opportunities?
Investment/Development Groups
The average investment group holds more than 10 individual properties
Third Party Logistics Companies
Hospitality Logistics, AJ Logistics, Titan
Construction Companies
Owner Representatives
Owner reps are a good conduit between the owner of the property and the construction company
Owners

17. Where do you look for opportunities?
Hotel and Lodging Associations
Every state and most countries have a lodging association of some kind
AHLA- American Hotel and Lodging Association
HAC- Hotel Association of Canada
AHA- Australian Hotel Association
EMHA- European Hotel Managers Association

18. How does OMA assist you? Market research
Regional growth activity studies
Identification of Target accounts
Open doors through “C” level contacts
Pricing assistance
Lend credibility to service product

19. Standard Pricing Scenario
Common pricing is based on a Combination Hundredweight (CWT) and hourly pricing
Elements to price include:
Handle in
Storage
Handle out
Delivery to site
Unload and place in room
Installation of artwork
Disposal of debris
Other miscellaneous delivery and installation services

20. Sample Pricing Model
Hotel projects are generally split into two separate pricing segments. In most situations the owner will control the movement and be responsible for the FF&E product until it is delivered to the job site. At that time the product falls under the care and custody of the general contractor.

21. Sample Pricing Model Breakdown Part 1: Part 2: Receiving
Storage
Handle out
Delivery to site (1 man, 1 truck)
Part 2:
Receiving on site
Placement of product in the rooms
Installation of hanging items
Disposal costs
Any miscellaneous requests from the GC

22. Sample Pricing Model Assumptions: 200 rooms 1500lbs per room
Hotel Breakdown
Assumptions:
200 rooms
1500lbs per room
8 month project
10 hanging items

23. Sample Pricing Model Total Part 1= $53,000
200 x 1500 = 300,000lbs (3000cwt)
Handle In: 3000 x $2.25 = $6750
Handle Out: 3000 x $2.25 = $6750
Storage: 3000 x $2.25 x 8 = $54,000/2=$27,000
(Divide by 2 because you will not have 100% of the product in storage for the entire 8 months)
Deliveries: 300,000/6000(lb per del)= 50 deliveries
50 x $250.00=$12,500
Total Part 1= $53,000

24. Sample Pricing Model Total Part 2 = $77,500 Total = $130,500
Assume 8 men on site to receive and place product in addition to the driver
50 deliveries: 50 x $ x 4hrs = $56,000
2 installers for 1hr per room
$70.00 x 200 = $14,000
Disposal: 15 dumpsters x $ = $7,500
Total Part 2 = $77,500
Total = $130,500
Approx. $650.00/rm

25. QUESTIONS?

26. The Future of Best Practices
Quality Assurance Program
Consistency and Performance Measures
Written Process and Procedure
Assist in generating revenue opportunities by building our credibility