Capex categories that owners actually track
Most GMs talk about capex as a single number — "we spent €1.2M on capex this year." Owners do not think that way. An owner with a portfolio of properties tracks capex in four distinct categories because each category has a different return profile, a different urgency, and a different funding source. A GM who reports a single capex number is signalling they do not understand how the money is being judged.
The four categories
USALI 11th edition formalised what good owners had been tracking informally for decades. The four buckets are: FF&E (furniture, fixtures and equipment — the things that wear out on a 7-10 year cycle), building maintenance (the structural and mechanical replacements on a 15-25 year cycle), PIP / brand-mandated investment (the work the brand requires to keep the flag), and ROI / discretionary capex (revenue-generating projects the owner chose to fund).
Why the split matters
FF&E is funded from an FF&E reserve — typically 3% of total revenue set aside monthly into a restricted account. The owner is not "deciding" whether to fund FF&E. The reserve is already funded. The decision is when to spend it, on what, and in what sequence. A GM proposing FF&E without referencing the reserve balance is wasting the conversation.
Building maintenance is funded from owner equity or debt. The owner is making an active capital decision. The conversation is different — the GM needs to present multiple options, NPV calculations, and a defensible deferral cost if the work waits another year.
PIP is non-discretionary in a useful sense — the owner can refuse, but refusal triggers brand termination and the loss of the distribution channel and loyalty program. The conversation is not "should we" but "how do we negotiate scope and timing." That is a different module.
ROI capex is the most negotiable. The owner is making an investment decision against alternatives. A €600k pool refurbishment with a 4-year payback competes with the owner buying another property, returning capital to LPs, or paying down debt. A GM who frames the pool refurbishment as a "we need it" rather than a "here is the IRR" loses the argument before it starts.
What I track at the property level
At the Bodrum property I run a single capex tracker — a Google Sheet, nothing exotic — with one row per active or planned project. Each row carries: category (FF&E, building, PIP, ROI), description, year of need, year of funding, estimated cost, actual cost when committed, status (planned, in design, in procurement, in build, complete), funding source (reserve, owner equity, debt draw), and the page reference to the owner approval memo. The sheet is shared with the asset manager. When the owner asks "what is happening with capex," I send the sheet. No PowerPoint. No narrative slide. Just the sheet.
Owners do not buy stories about capex. They read trackers.