Services

Purchasing and Capital Renovation

Purchasing is a key to expense control. First Carolina Management reviews vendors and costs on a monthly basis to assure the lowest possible expenses for the hotels. Wherever possible, negotiated company-wide vendor pricing is utilized.

Capital projects are crucial and can redefine any hotel. First Carolina Management has vast experience in managing capital expense items and project purchasing. We make sure the proper decisions are made on repair versus replacement of capital expense items. We analyze return on investments of capital dollars in our decision making process.

Activities

• Specific capital needs for the hotel are determined by operations and management. Also, any franchise requirement needs are taken into account.
• We compile one-year and long-term capital budget plans as part of the capital budgeting process. The annual capital budgets are presented for approval at the annual investors' meetings held in March/April of each year.
• Capital budget items are put out for bid, and decisions are made based on both cost and quality.
• We strongly believe in establishing a capital reserve fund, setting aside funds each month from operations in order for the funds to be available when required for routine capital needs.
• We keep our investors apprised of future major renovation projects and the time frame for such.