Cost and Profit Planning for a Laundry Processing 1,000 Hotel Linen Sets per Day

A laundry designed to process 1,000 hotel linen sets per day is a typical medium-scale operation. The figures below are planning estimates based on Chinese market conditions and should be replaced with local quotations, utility tariffs, labor costs and customer contracts before any investment decision.

Daily production volume

One standard hotel linen set may include one sheet, one duvet cover, two pillowcases, one bath towel, one hand towel and one bath mat. A daily volume of 1,000 sets is approximately 3–5 metric tons, depending on linen weight and the mix of rooms and towel products.

Indicative equipment investment

• Three to four 100 kg washer-extractors, or four to five 50 kg units
• Two to three 100 kg tumble dryers
• At least one four-roll flatwork ironer
• An automatic folder
• A linen feeder, stacker, air compressor, water-treatment equipment, carts and worktables
• A 0.5–1 ton steam boiler where a central steam supply is not available

The original Chinese estimate places equipment investment at approximately RMB 800,000–1.5 million. The final amount depends on capacity, automation level, heating method, brand, configuration and whether equipment is new or used.

Facility and infrastructure

A plant of this size may require about 300–500 square meters for sorting, washing, drying, finishing, storage, utilities and administration. The production layout should include safe drainage, ventilation, electrical capacity, steam piping, fire protection and wastewater treatment. The source estimate for first-year rent, modification and infrastructure is RMB 300,000–750,000.

Operating costs

Major monthly costs include labor, water, electricity, steam or gas, chemicals, packaging, delivery, maintenance and administration. The source article estimates a team of roughly 8–12 people and total monthly operating costs of RMB 120,000–220,000. Actual staffing depends heavily on the level of feeding, folding and stacking automation.

Revenue and profitability

Using an illustrative service price of RMB 8–14 per linen set and 26 operating days per month, gross monthly revenue could range from about RMB 208,000 to RMB 364,000. However, utilization, customer mix, payment terms, rewash rates, linen-loss responsibility and regional competition can materially change the result.

The source article suggests a possible annual net profit of RMB 500,000–1.5 million under normal operation, with an estimated payback period of about 1.5–3 years. These are not guaranteed returns.

Key profit drivers

• Capacity utilization: Fixed costs become difficult to absorb when utilization remains below roughly 60%; stable contracts are essential.
• Labor productivity: Automated feeding and folding can reduce repetitive manual work, but must be justified by throughput.
• Energy and water control: Optimized wash programs, heat recovery and water reuse can reduce utility costs.
• Customer concentration: Avoid relying on one account for a disproportionate share of revenue.
• Cash flow: Hotel payment cycles of 30–90 days require sufficient working capital.
• Compliance: Wastewater, emissions, fire safety and boiler requirements must be included in the project budget.

Important: This article is for preliminary planning only and is not financial advice. A feasibility study should use verified local prices, contracts, regulations and equipment quotations.