Many hotels and large facilities manage their laundry in-house, thinking it’s the most cost-effective solution. However, hidden expenses related to equipment, utilities, and labor often make outsourcing a smarter financial choice. Here’s why outsourcing laundry can lead to substantial savings and free up resources for other priorities.
1. High Equipment and Maintenance Costs
Operating an on-premise laundry (OPL) involves high upfront costs and ongoing maintenance expenses. The initial capital outlay for equipment alone can reach CAD $100,000 to $150,000 for a 100-room hotel . On top of this, annual maintenance costs and repairs quickly add up, creating a significant financial burden.
2. Reduced Utility Bills
Running an in-house laundry is resource-intensive, with frequent use of water, electricity, and gas. For example, the average 100-room hotel spends between CAD $25,000 and $30,000 annually on utilities for laundry operations . This includes inefficient use due to under-trained staff who may not operate machines optimally.
3. Labor Cost Savings
In-house laundry requires a dedicated team to handle washing, drying, folding, and inventory management. For a 100-room hotel, this could mean around CAD $20,000 per year just in wages for part-time laundry attendants . Outsourcing reduces the need for extra staff, allowing hotel personnel to focus on guest services and other high-priority tasks.
4. Optimized Space Usage and Opportunity Costs
Maintaining an in-house laundry operation requires dedicated space that could otherwise generate revenue. For example, a hotel in Chicago turned its laundry room into a ballroom, generating a food and beverage minimum of $25,000 per event . Similarly, a resort that transformed its laundry space into guest rooms generated an additional $20,500 annually at a 70% occupancy rate.
5. Consistent Quality and Hygiene Standards
Maintaining strict cleanliness standards in-house can be challenging, especially for facilities without specialized laundry expertise. A dedicated laundry provider ensures linens are cleaned to the highest standards, meeting guests’ expectations for hygiene and quality. According to Hotelier Magazine, 96% of guests are less likely to return if linens appear unclean.
Conclusion
For hotels and large facilities, in-house laundry often becomes more expensive than anticipated. The costs associated with equipment, utilities, labor, and space can quickly add up, while outsourcing offers a streamlined, cost-effective alternative. By partnering with a professional laundry provider, facilities can focus on delivering exceptional guest experiences while benefiting from significant cost savings.
