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Hotel Laundry Outsourcing ROI Calculator
Outsourcing laundry can free space, reduce labor, and improve quality — quantify the trade-off.
Annual savings
$35,500
Outsource cost
$321,750
In-house cost
$272,250
How the math works
Lbs = nights × lbs/night. Direct diff = in-house − outsource. Total savings = direct diff + space/labor.
55k × 9 = 495k lbs. $321,750 outsource vs $272,250 in-house. ($-49,500) direct + $85k space = $35,500 net.
How to Use
- Enter annual room-nights.
- Enter pounds linen / room-night.
- Enter outsource $/lb.
- Enter in-house cost / lb.
- Enter equipment + space savings annual.
- Read annual savings.
Frequently Asked Questions
When to outsource?
Properties under 150 rooms: usually outsource (volume too low for in-house economics). 150-300 rooms: depends on space + labor cost. 300+ rooms with available basement space: usually in-house. Resort properties: in-house common (linen specs unique). Urban high-rises: outsource common (space too valuable). 50+ properties in market: regional commercial laundries cost-competitive.
Cost breakdown?
Outsource: $0.45-0.85/lb total cost. Includes pickup, washing, ironing, folding, return delivery. In-house: $0.35-0.65/lb labor + utilities + chemicals + equipment amortization. In-house seems cheaper but excludes: space opportunity cost ($30-100/sqft/yr × 1,500 sqft laundry = $45-150k/yr), supervisor labor allocation, equipment downtime + repairs, linen replacement higher rate (worse care).
Operational considerations?
Pickup/delivery schedule: daily for high-volume, 2-3x/wk small. Linen pool ownership (CL Direct, Boelter, Linen King): no in-house inventory required. Quality control: contracted cleanliness + ironing standards. Linen replacement cost: $25-60/sheet, $15-40/towel, $40-150/duvet. Major supply chain disruption (covid era): outsourced more resilient.
Hybrid models?
Outsource bulk linen + in-house spot cleaning: balanced. Outsource banquet/event linen, in-house guest room linen: common. Owner-purchased linen pool, contracted laundry: hybrid. F&B / spa towels: separate workflow common. Best fit varies by property + market. Typical break-even point for in-house: 175-275 rooms with stable volume.
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