An FF&E reserve is money set aside for the future replacement or improvement of furniture, fixtures, and equipment. Hotels contain a large number of assets that wear out, become obsolete, or require modernization over time, making ongoing reserve planning important to long-term property performance.

Depending on the property's agreements and accounting structure, reserve funds may help support future guest room renovations, furniture replacement, televisions, appliances, HVAC equipment, and other eligible capital needs.

The appropriate reserve strategy varies by hotel, ownership structure, brand, management agreement, asset age, and anticipated capital requirements.