Is Your Hotel’s On-Premise Laundry Really Saving You Money?

Is Your Hotel’s On-Premise Laundry Really Saving You Money

For many hotels, running laundry on-site feels like the most cost-effective option. The equipment is already there, the laundry is handled in-house, and the process feels familiar.

But the true cost of an on-premise laundry (OPL) goes beyond washing and drying each load.

Labor, utilities, equipment, maintenance, linen replacement, and management time all add up. When those costs are considered together, outsourcing may look very different than it does on paper.

What Is Your OPL Really Costing You?

The costs of running an OPL can include:

  • Laundry wages, benefits, and overtime
  • Water, sewer, gas, and electricity
  • Washers, dryers, ironers, and boilers
  • Repairs and maintenance
  • Laundry chemicals
  • Linen inventory and loss
  • Equipment replacement
  • Management time

Some of these costs are easy to see. Others are spread across different areas of the hotel's budget and may not be considered part of the laundry expense.

That is why looking at the total cost matters.

Compare Total Cost, Not Price Per Pound

Looking at the cost of processing each pound of laundry does not tell the whole story.

A better comparison considers the full cost of operating the laundry:

OPL Total Cost = Labor + Utilities + Equipment + Maintenance + Chemicals + Linen + Loss + Capital Replacement + Management Time

Linen rental(opens in new tab) has a different cost structure. Instead of managing the laundry operation yourself, your hotel pays for a professionally managed service that can include linen processing, inventory management, replacement, and weekly delivery.

Once all of the costs are included, you have a much clearer picture of which option makes sense for your property.

The Costs That Are Easy to Overlook

Running an OPL takes more than equipment. Employees need to sort, wash, dry, finish, fold, and manage linens. Equipment requires maintenance and eventually needs to be replaced. Utility costs continue with every load, and unexpected repairs can disrupt operations.

There is also the management time involved in staffing, inventory, maintenance, and troubleshooting. These costs may not stand out individually, but together they can have a significant impact on the hotel's operating budget.

What Changes With Linen Rental?

With a professionally managed linen rental program, the hotel no longer has to manage the laundry operation itself.

Gunderson handles professional processing, linen inventory and replacement, and weekly delivery. This can reduce laundry staffing pressure and eliminate the need for major laundry equipment investments.

Our Hygienically Clean Hospitality(opens in new tab) certification also provides verified standards for hygienic linen processing.

Run the Numbers Before You Replace Another Washer

There is no one-size-fits-all answer. The right choice depends on your hotel's size, staffing, equipment, utility costs, linen volume, and other operating expenses. That is why a true OPL comparison should use your property's actual numbers.

At Gunderson, we can help compare labor, utilities, equipment, linen, maintenance, and capital costs so you can see the full picture before making your next investment.

Partner with Gunderson(opens in new tab) to understand the true cost of your hotel's laundry operation and determine whether linen rental could be the right fit for your property.