Commercial laundry vs in-house hotel laundry

When it makes sense for a London hotel to outsource, and when an in-house laundry earns its keep.

At a glance

For London hotels under about 100 rooms, commercial laundry is almost always the right answer — the capital cost of industrial washing equipment, the square footage required, the staffing complexity, and the compliance overhead rarely justify in-house operation. In-house starts to make sense above ~150 rooms with predictable volume, and is standard in large international-brand hotels.

When Commercial laundry (outsourced) wins

  • Hotels under 100 rooms
  • Boutique hotels with variable occupancy
  • Hotels without dedicated back-of-house laundry space
  • Operators wanting to avoid laundry staffing complexity
  • Hotels that prefer operating expense over capital expenditure

When In-house hotel laundry wins

  • Hotels with 150+ rooms and stable occupancy
  • International-brand hotels with brand-standard laundry requirements
  • Hotels with dedicated back-of-house space and ventilation infrastructure
  • Campuses with multiple properties on one site

Side-by-side comparison

DimensionCommercial laundry (outsourced)In-house hotel laundry
Upfront capitalZero.£150,000–£500,000+ for industrial washers, dryers, ironers, folders.
Ongoing costPer-item / per-kilo / per-room billed monthly. Scales with occupancy.Fixed: staff salaries, utilities, maintenance, detergents, replacement parts.
Floor space requiredNone — handled off-site.Dedicated laundry room with ventilation, drainage, power (3-phase typical).
Compliance burdenSupplier holds BS EN 14065 RABC certification.Hotel must maintain own certification, audits, staff training.
StaffingNone required.Laundry attendants (typically 2–4 per shift for mid-size hotels), plus supervisor.
Variable cost behaviourDrops with low occupancy.Fixed cost base — low occupancy means higher per-room laundry cost.
Service continuity riskSupplier outage is possible — mitigate with backup stock agreement.Internal equipment failure is expensive and disruptive.
Capacity flexibilityScales up and down easily.Capped by installed equipment capacity.

Our verdict

For London hotels under ~100 rooms, commercial laundry is the clear right answer. For 150+ room hotels with stable occupancy and back-of-house space, in-house can pay back — but the break-even calculation needs to include staff, compliance, and equipment depreciation honestly, not just consumables.

FAQ

How many rooms does a hotel need before in-house laundry pays back?

Roughly 150 rooms with stable occupancy is the threshold where in-house laundry starts to make sense in London. Below that, commercial laundry is usually cheaper once you account for equipment, staffing, compliance and space.

What goes wrong when a hotel runs laundry in-house?

The most common failure modes are equipment downtime (single-point failure on a critical washer can stop service), compliance lapses (BS EN 14065 certification requires active RABC management), and staffing gaps during holidays or sickness.

Can a hotel mix in-house and commercial laundry?

Yes. Some hotels handle room linen in-house and outsource banqueting linen to a commercial laundry, or vice versa. Hybrid models are practical when in-house capacity is fixed and demand is variable.

Need help deciding?

Share your property details — we'll quote both models so you can compare on real numbers for your specific operation.