CapEx Forecast Calculator

Understanding CapEx Forecasting

A Capital Expenditure (CapEx) reserve is a fund set aside for major, long-term purchases and renovations, rather than day-to-day operational costs. Properly planning for CapEx is crucial for maintaining a hotel's physical condition and market competitiveness.

A common industry practice is to allocate a percentage of total annual revenue (typically 4-7%) to this reserve fund each year. This calculator helps you visualize how that fund can grow over time.