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Flashcards in Rooms - Chapter 7 Deck (10):


Americans with Disabilities Act. U.S. federal legislation enacted in the early 1990s mandating that owners and operators of public facilities provide certain accommodations for individuals with disabilities as specified in the legislation.



Short for “capital expenditure.” A major expenditure catsegory in the hospitality industry covering replacement of worn-out furniture, finishes, and soft goods; wear and tear; obsolescence; regulatory requirements such as ADA and life safety; franchise product demands; changing technology; market demand for product change; and replacement and renovations of building components and heavy equipment.


facilities management companies

Companies with the expertise to provide services such as housekeeping, grounds, and physical plant management to hospitality companies, schools, universities, and various industries.



Furniture, fixtures, and equipment; a major portion of CapEx


franchise agreement

An agreement under which one entity that has developed a particular pattern or format for doing business—the franchisor—grants to another entity—the franchisee—the right to conduct such a business provided it follows the established pattern.



An abbreviation for “heating, ventilation, and air conditioning.” HVAC is the general term applied to a property’s temperature management system. It includes heat and refrigerated air systems and attendant ductwork, airflow machinery, and control devices.


management contract

An agreement between the owner/developer of a property and a professional hotel management company. The owner/developer usually retains the financial and legal responsibility for the property, and the management company receives an agreed-upon fee for operating the facility.



An abbreviation for “property operation and maintenance.” One of two principal cost entries (along with utilities) in the hospitality industry detailing ongoing costs of operation following construction of the facility.


replacement reserves

Cash reserves set aside largely for maintenance and repair needs (the amount set aside is usually based on a percentage of gross revenues). Management contracts commonly require that operators fund replacement reserves for FF&E.



An abbreviation for “testing, adjusting, and balancing.” In the building commissioning process, TAB is one of the verification elements that ensures the quality of the installation of systems in the facility (for example, the HVAC and water systems).