Understanding Hotel Laundry Costs: A Comprehensive Guide for Hospitality Professionals

What Influences Hotel Laundry Costs?

The cost of hotel laundry services is influenced by various elements:

• Room Inventory and Linen Volume: The number of rooms and the frequency of linen changes directly impact laundry volumes. If your hotel keeps 3x or 5x stock in-house will also impact general running costs. 

• Location: Proximity to laundry service providers can affect transportation costs.

• Linen Quality: High-quality linens may require specialized care, influencing cleaning costs. Low quality linens may be damaged by repeated washing and wear out sooner, leading to excess replenishment costs. 

• Service Provider: Different providers offer varying pricing structures and services.

• Number of Rooms: If your hotel has 10 rooms or 240 your laundry cost will grow accordingly.

Shortridge Ltd. notes that a standard double room linen changeover can range from £10 to £55 per room, depending on factors like linen specifications and service frequency.

A standard double room might include:

• 1 sheet

• 1 duvet cover

• 4 pillowcases

• 2 bath towels

• 2 hand towels

• 1 bath mat

• 2 face cloths

• 2 bathrobes

This totals 15 pieces per room, each requiring collection, washing, ironing, and delivery.

According to Ecolab, a typical 150-room hotel may spend over $200 (approx. £150) per day on laundry, amounting to approximately $75,000 (approx. £56,000) annually. Notably, about 25% of this cost is attributed to linen replacement, emphasizing the importance of effective stain removal and linen care.

In-House vs. Outsourced Laundry Services

Deciding between in-house and outsourced laundry services involves weighing various factors:

• In-House Laundry:

  • Pros: Greater control over quality and turnaround times.

  • Cons: High initial investment in equipment and ongoing operational costs.

• Outsourced Laundry:

  • Pros: Reduced capital expenditure and access to specialized expertise.

  • Cons: Potentially less control over processes and dependency on third-party schedules.

For example, Chipman Laundry estimates that the average annual cost for on-premise laundry in a 100-room hotel ranges between CAD $161,500 (approx. £120,000) and $241,000 (approx. £180,000).

Strategies to Optimize Laundry Costs

To manage and reduce laundry expenses, consider the following strategies:

• Invest in Durable Linens: High-quality linens have longer lifespans, reducing replacement frequency.

• Implement Efficient Laundry Practices: Train staff on best practices to minimize damage and extend linen life.

• Regular Maintenance of Equipment: Ensure laundry machines are well-maintained to operate efficiently.

• Monitor and Analyse Costs: Regularly review laundry expenses to identify areas for improvement.

Conclusion

Understanding the various factors influencing hotel laundry costs is crucial for effective budget management and operational efficiency. By analysing current practices and exploring optimization strategies, hoteliers can ensure high-quality linen services while maintaining cost-effectiveness.

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