There are two types of Housekeeping Budget, Operational and Capital Expenditure.

1)   Operational Budget

Operational Budget is the allocation of specific amount as expenditure for the smooth operation of the department whether on a daily, weekly, monthly and/or yearly basis. In the Types of Housekeeping Budget

case of hotel operation, control of expenses is based on the occupancy percentage.  The budgeted amount for the month can be variable since there are times occupancy can vary especially in areas or countries where forecasting of occupancy percentage can be reliable.

The  basic Housekeeping Operational Budget is as follows:

     a)      Linen & Towels

b)      Guest Supplies and Amenities

c)       Cleaning Supplies

d)      Laundry Supplies

e)      Machine, Tools & Equipment

f)       Staffing

Housekeeping budget depend on the function of the hotel and what areas are assigned under the responsibility of the Housekeeping Department.

There are budgeted items or sections of the department that are usually divided between other departments.

      a)      Repairs and Maintenance

This type of operational budget is being charged between Housekeeping and Engineering or Maintenance Department.

b)      Uniform Budget

Uniform expenses are prepared by the Executive Housekeeper in coordination with other uniformed departments. Style and color coordination of the uniform is also discussed with each of the uniformed departments and seek the approval of the General Manager and then charged to each department accordingly.

c)       Decoration Budget

One of the most important roles of Housekeeping is to beautify the hotel and decoration is one of the functions of Housekeeping. Decoration can be flower arrangements either fresh or artificial flower, picture frames, statuary, carvings, tapestry, elegant chandeliers or many others. Decorations can be prepared by Housekeeping but delivered to be used by other department. Therefore, the expenses incurred once identified is charged accordingly.

d)      Stationeries and Office Supplies Budget

This budget is usually divided between Front Office and Housekeeping Department. An example of this is the forms used by the two departments for written communication and vital documentation of the operation.

e)      Miscellaneous

These are expenses which are not identified and not related to any of the operational budget mentioned.

f)       Landscaping & Gardening

g)      Flower Shop

 

 A good example of this is like forms being used between Front Desk and Housekeeping for smooth communication and documentation of the operation. Therefore the expenses incurred in the preparation and printing of the form is divided between the two department based on consumption during the requisition process made by each one of them.

Another example is when the section assigned to Housekeeping is a function that is described as part of Housekeeping and partly to another department. To cite an example for this one is when Upholstery shop has been assigned to Housekeeping.  When an upholsterer works on upholstery of a chair for the Food and Beverage Restaurant, the labor and materials or any expenses incurred to finish the job is then charged to Food and Beverage Department.

Decoration budget is one of the functions of the Housekeeping. Decoration can be expressed in flowers whether it be fresh or artificial flowers. It can be picture frames, statuary, carvings, tapestry and many others

Landscape and Gardening budget plays an important façade in the beautification of the hotel inside and outside the hotel.

 Laundry is also part of Housekeeping budget; calculation of laundry budget is based on the consumption of dry cleaning solvent, laundry detergent, softener and bleach. Laundry budget is composed of Laundry cleaning agent, staffing, washer and dryer maintenance and miscellaneous expenses to operate the laundry.  In case of a hotel with in-house laundry, it will need additional dry cleaning machine with the dry cleaning fluid, a sorting/ marking machine, folding machine like calendar, bigger washer, more tumble dryer, dry cleaning list and laundry list for the guest and provided in guestrooms, laundry and dry cleaning bags also provided in the rooms, linen carts, movable hanger rods and many others that helps in the smooth operation of Laundry.

2. Capital Expenditure Budget.

CAPEX or Capital Expenditure is the allocation of much bigger funds and usually a one time expense for the year or yearly depending on the approved project and yearly budget. A proposed CAPEX budget can be replacement of 5 Housekeeper's cart every year for five years, which means a fund for a total cost of five carts will be allocated as CAPEX budget every year for five years. Another example of CAPEX budget is replacement of room's curtain per floor, the Executive Housekeeper will then do the canvassing of total cost of curtains per floor and submit the amount to the Finance Department with a reasonable mark-up in case cost goes up till the budget gets approved.
There are lots of projects that can be considered Capital expense project.

Basically, housekeeping has to submit 1) Operational Budget and 2) Capital Expenditure Budget.