Furniture, Fixtures and Equipment

(FF&E) A term frequently found in the ownership of a hotel or motel that wears out much more rapidly than other the components so an owner or prospective buyer needs to establish the condition, cost, and frequency of replacement of the FF&E. Example: In measuring the profitability of a hotel, a real estate appraiser subtracted 3% of total revenues to provide for the eventual replacement of FF&E. The useful life of FF&E in a hotel was estimated at 7 years..