Fixed Assets Management
- Askar DG KAMIS
- Dec 19, 2025
- 4 min read
Objective:
This policy is to ensure the compliance with the terms of Management Agreement to which the Hotel has to strictly adhere to. This is especially important in the case of establishing, adding of FF&E, disposal and relocation of assets. All department heads must be made aware that the hotel management is the trustee of these assets which belong to the Owners and therefore has an obligation to ensure to safeguard their assets at all time.
Procedure:
Obtain from owners a proper fixed asset register when hotel opens. Ensure that these have been delivered and installed accordingly. Ensure pictures are available at property level. The opening list needs to be signed and submitted as with the initial operating equipment to the corporate office for safe keeping. If the hotel does not receive the list as requested an official request in writing must be made by the General Manager with copy to the Area / AGM /RGM and sub-regional teams.
Any additions, discards or relocation of assets will have to be properly recorded. Detailed information pertaining to the particular asset will have to be completed by the respective department.(Refer to the Fixed Asset Disposal Request form)
Addition of Hotel Assets
In the case of an addition, an asset code number will be given by the Finance department so that it will be registered into the asset registration card.
Original invoices and Receiving Record for additional assets must be copied to the Owner Company for their recording purposes.
All new asset code will have to be updated in the asset register by the Owning Company.
Relocation of Hotel's Assets
(1) The concerned department will prepare a Fixed Assets Relocating Request form, as per the format given in AC-FA-02.
(2) The item that is to be relocated will have to be acknowledged by the respective receiving department or the issuing section supervisor.
(3) These forms must be approved by the Department Head and sent to the Finance Department for verification and proper record.
(4) After verification, the Manager / Director of Finance & Business Support should initial the forms and then forward these to the General Manager for approval.
(5) Upon approval by the General Manager, all relocated asset code will have to be updated in the asset registration by the Owning Company.
Disposal of Hotel's Assetts
These procedures cover disposal and scrapping of Fixed Assets and low value fixed asset items.
(1) The concerned department will initiate the fixed assets disposal process by preparing the Fixed Assets Disposal Request form, as per the format given in AC -FA-03
(2) These forms must be approved by the Department Head and sent to the Finance Department for verification and assignment of a serial number.
(3) After verification, the Manager / Director of Finance & Business Support should initial the forms and then forward these to the General Manager.
(4) Upon approval by the General Manager, the forms will be presented to the Owner for approval.
(5) The approval from Owners could be on a case-to-case basis, or as per some general guidelines mutually agreed by the owners. These general guidelines could delegate the power to the General Manager up to a specific value limit or for certain classes of assets or on any other criteria. The value limits should be with reference to the original purchase price.
(6) After obtaining approval by the Owners, the Purchasing Department should invite at least three independent tenders of disposal of the asset, and award the tender to the highest bidder. The Finance Department will then make the necessary entries in the books of accounts after ensuring that the tendering process was satisfactorily performed and did not compromise the Company’s interests.
(7) In case of small value items, operating equipment etc., the General Manager may recommend to the Owners that the items may be disposed of by way of sales / auction to the staff members. The minimum price, if any and modalities of the sale / auction must be approved by the Owners.
(8) Related original document for disposal assets must be copied to the Owning Company for their recording purposes.
Attachments
Coding
All coding will standardize for all items FFE generate starting beginning when the item request and receipted by the hotel, however the coding can implement when the new FFE install on budgeting preparation.
Enclosed the Standardize of the coding starting when the hotel open or for new FFE when adding on yearly budgeting preparation :
Coding when the hotel open (sample) :
FO_BM_4/4_042014_NEW_TROLLEY_LOCAL
Explanation :
FO : Division/Department
BM : Location item used, BELLMAN
4/4 : Number of Items
042014 : Receipt the items > April 2014
NEW : Really New Item, whenever open hotel or after operation
TROLLEY : Name Items
LOCAL : Brand Name
Coding when we must to replace the equipment by FF&E (sample) :
FO_BM_4/4_042014_RPLCM_TROLLEY_LOCAL
Explanation :
FO : Division/Department
BM : Location item used, BELLMAN
4/4 : Number of Items
042014 : Receipt the items > April 2014
RPLCM : Replacement old items
TROLLEY : Name Items
LOCAL : Brand Name
Coding when we must to make additional the equipment by FF&E (sample) :
FO_BM_4/4_042014_ADD_TROLLEY_LOCAL
Explanation :
FO : Division/Department
BM : Location item used, BELLMAN
4/4 : Number of Items
042014 : Receipt the items > April 2014
ADD : Additional Items
TROLLEY : Name Items
LOCAL : Brand Name
Coding on requisition upon prepare the FF&E budget, will make without “Receipt the Items” description as they not receipt yet.
Filing
All items receipted will documented with fully picture, names and coding, so we easily us to control. And the list will continuously update and filing at the Manager / Director of Finance & Business Support.
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