Jump to content

Hotel Ownership: Properly accounting for maintenance cap-ex


Recommended Posts

It seems big ticket items like roof repairs and major hotel renovations are not included in AFFO. Even though the difference between FFO and AFFO is "adjustments made for recurring capital expenditures". The adjustments are for FF&E. Big ticket items may not be "recurring", but when they happen, have a very material affect on that year's FCF, and hence also on the average for a 5 year FCF number.


Does anybody have a good/commonly accepted method to adjust for these big ticket items as a relation to every year's annual revenues to arrive at a more accurate 'Adjusted'-AFFO or true Owners Earnings?




Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...