Hotel CapEx, or capital expenditure, generally refers to money invested in assets or improvements expected to provide value over multiple years. Depending on the property's accounting policies and the nature of the expenditure, this can include renovations, building systems, guest room equipment, technology infrastructure, furniture, and major equipment replacements.

CapEx differs from routine operating expenses associated with the property's day-to-day operation. Replacing a large quantity of aging guest room televisions or PTAC units, for example, may be treated differently from completing an individual repair.

Hotel owners use capital planning to anticipate these larger investments rather than allowing major replacement needs to emerge unexpectedly.