We always suggest clients create a reserve FF&E budget from day 1. This essentially involves creating a budget or allowance that enables you to replace items as they become worn or out-of-date and is crucial for the long-term prospects of the hotel looking great, driving revenue and operating successfully. The trick is to start low, say 2%, when the FF&E is new and then increase this systematically each year as your FF&E ages. Having and protecting this reserve ensures you can maintain your hotel’s standards without the need to divert large chunks of revenue in later years. It also protects you in the event that you need to consider defensive spend if a new hotel suddenly opens around the corner.