Hotel Laundry Payback Calculator

In-house laundry pays back fast at 100+ rooms but requires capex and operational skill.

Annual lbs processed

Outsource cost / lb

In-house cost / lb

In-house capex

Payback

1 yr

Annual savings

$357,500

5-year net

$1,437,500

How the math works

Savings = outsource cost − in-house cost. Payback = capex / savings.

550k × $1.20 = $660k outsource − 550k × $0.55 = $303k = $358k savings. $350k / $358k = 12 months.

How to Use

Enter annual lbs processed.
Enter outsource cost / lb.
Enter in-house cost / lb.
Enter in-house capex.
Read payback.

Frequently Asked Questions

In-house vs outsourced math?

In-house: $200–500k capex (washer-extractors, dryers, ironer, soft goods), $0.40–0.80/lb processing cost (labor + utilities + chemicals). Outsourced: $0.90–1.60/lb. Break-even threshold: 100–150 occupied rooms typical. Brand requirements: many flag franchises require in-house above 200 rooms. Capacity sizing: 1.5x peak occupancy load. Reject linen tracking: par stock 3.0–3.5 sets per room target.

How does this support hotel underwriting?

Hotel investors and operators use this calculator alongside RevPAR, GOP, and flow-through analysis to validate operating assumptions. Pair it with a comp set benchmark (STR or HotStats data), brand/franchise standards, and seasonal demand patterns. Output is most useful when triangulated against trailing twelve-month financials and a forward booking pace report.

Brand vs independent treatment?

Branded hotels (Marriott, Hilton, Hyatt, IHG, Choice, Wyndham) typically follow USALI 11th edition reporting which dictates how this metric flows through the P&L. Independent and lifestyle hotels have flexibility but most lenders still expect USALI-aligned reporting. Use brand standards or local CVB data when defaults aren't representative of your asset.

Seasonal sensitivity?

Inputs based on annual averages mask peak/shoulder/trough volatility. Resort properties may see 60–80% of annual revenue concentrated in 4–6 months. Urban transient is more even but dips for weekends. Model peak month, shoulder month, and trough month separately if seasonality exceeds 20% swing. Stress test with a 10–15% RevPAR shock for cycle planning.