A.CRE

OS&E

OS&E is a common initialism used in the hotel industry for Operating Supplies and Equipment. OS&E refers to an enormous range of items that a hotel will need to operate. OS&E does not include items like stoves or washing machines or any major items that require installation. Examples of OS&E are as follows:

  • Dishware
  • Cutlery
  • Trashcans
  • Trays
  • Cleaning supplies
  • Staff uniforms
  • Office supplies
  • Irons and ironing boards
  • Luggage carts
  • Vacuums

Putting ‘Operating Supplies and Equipment (OS&E)’ in Context

Scenario Overview

Apex Hospitality Partners, a real estate private equity firm, recently acquired The Windy City Grand Hotel, a 300-room full-service hotel in downtown Chicago. This acquisition aligns with their core investment strategy, targeting stabilized hospitality assets in top-tier urban markets. The hotel is positioned as an upscale brand catering to business travelers and tourists.

How OS&E Applies

As part of the acquisition, Apex Hospitality Partners conducted a detailed review of the hotel’s Operating Supplies and Equipment (OS&E) to assess its readiness for continued operations. OS&E represents a critical component of the hotel’s functionality and guest experience, encompassing items like dishware, cutlery, staff uniforms, luggage carts, cleaning supplies, and guest room accessories such as irons and ironing boards.

Upon acquiring the hotel, the team identified several OS&E categories that needed replenishment or replacement to maintain the property’s high-quality service standards. For example:

  • The banquet department required updated serving trays and chafing dishes to better support large-scale corporate events.
  • Housekeeping needed an additional stock of vacuums and cleaning carts to handle peak occupancy periods efficiently.
  • The front desk and concierge departments required refreshed uniforms to match the hotel’s premium brand image.

Financial Implications

Apex Hospitality Partners allocated $250,000 as part of the post-acquisition budget to address OS&E upgrades. This investment ensured a smooth transition of ownership while maintaining operational standards and guest satisfaction.

Formula for OS&E Budget Planning

A typical OS&E budget for a hotel is estimated at:

  • OS&E Budget = Number of Rooms × Per Room OS&E Cost

For The Windy City Grand Hotel, the formula was:

  • 300 Rooms × $800 Per Room = $240,000

An additional 5% contingency was added, bringing the total OS&E budget to $250,000.

Conclusion

By carefully planning and managing OS&E, Apex Hospitality Partners ensured The Windy City Grand Hotel remained a competitive and operationally efficient asset. This example highlights the importance of OS&E in the seamless operation of a full-service hotel and its role in guest satisfaction and operational success.

Frequently Asked Questions about Operating Supplies and Equipment (OS&E)

OS&E stands for Operating Supplies and Equipment. It refers to the wide range of items a hotel needs to function daily, excluding larger equipment that requires installation. Examples include dishware, cutlery, trashcans, cleaning supplies, irons, luggage carts, and uniforms.

Items included in OS&E typically consist of:

Dishware and cutlery

Trashcans and trays

Cleaning supplies and vacuums

Staff uniforms

Office supplies

Irons, ironing boards, and luggage carts

These are essential for daily operations but do not include large equipment such as washing machines or stoves.

Apex Hospitality Partners reviewed and replenished OS&E at The Windy City Grand Hotel after acquisition. For instance:

The banquet department needed updated trays and chafing dishes.

Housekeeping required new vacuums and cleaning carts.

Front desk staff received refreshed uniforms to align with the hotel’s upscale branding.

These upgrades ensured high operational standards were maintained.

A common formula for budgeting OS&E is:

OS&E Budget = Number of Rooms × Per Room OS&E Cost

For example, for The Windy City Grand Hotel:

300 Rooms × $800 = $240,000

Adding a 5% contingency raised the total budget to $250,000

OS&E is vital for ensuring a seamless operational transition post-acquisition. It directly impacts the quality of guest service and the efficiency of day-to-day hotel operations. In this case, Apex Hospitality Partners used a $250,000 OS&E budget to maintain The Windy City Grand Hotel’s high standards.

Click here to get this CRE Glossary in an eBook (PDF) format.
by