At first glance, doing laundry in-house seems like the economical choice for a hotel or gym. You already have the space and staff, so why pay an outside company to wash towels and linens?
The problem is that the true cost of in-house commercial laundry goes far beyond detergent. Labor, water, energy, equipment, repairs, chemicals, linen replacement, management and even the space occupied by your laundry operation all have a cost.
For high-volume businesses, outsourcing to a professional commercial laundry service can eliminate many of those expenses and operational headaches. LaundryPro, the premier commercial laundry service in Los Angeles, helps hotels, gyms and other businesses turn laundry from an internal operation into a scalable professional service.
What Does In-House Commercial Laundry Really Cost?
The true cost of in-house commercial laundry includes every expense associated with collecting, sorting, washing, drying, folding, storing and redistributing textiles.
For a hotel, that can include sheets, pillowcases, bath towels, hand towels, washcloths, robes, pool towels and other linens. A busy gym may process hundreds or even thousands of towels over a relatively short period.
Businesses should calculate:
- Employee wages and benefits
- Water and sewer charges
- Electricity and natural gas
- Detergents and laundry chemicals
- Commercial washers and dryers
- Equipment maintenance and repairs
- Replacement parts
- Linen and towel replacement
- Laundry carts, shelving and storage
- Employee training and supervision
- Space dedicated to laundry operations
Only after calculating all of these expenses can a business accurately compare its commercial laundry cost with an outsourced laundry service.
Labor Can Be One of the Largest Costs
Every towel and sheet requires someone’s time.
Employees must collect, sort, load, unload, dry, fold, organize and redistribute laundry. At a hotel, those responsibilities compete with housekeeping and guest-service duties. At a gym, employees doing laundry aren’t assisting members, maintaining equipment or handling other operational responsibilities.
Labor is already a major concern for the hospitality industry. In a 2026 American Hotel & Lodging Association survey, 65% of hotel owners and operators identified labor costs as a financial pressure. More than half also reported their properties were somewhat or severely understaffed.
Outsourced commercial laundry doesn’t simply eliminate loads from your machines. It can allow employees to spend more time doing the jobs that directly serve your guests and customers.
Water and Energy Costs Add Up
Laundry requires substantial amounts of water and energy, especially when machines operate throughout the day.
The U.S. Environmental Protection Agency identifies laundry as one of the largest uses of water in hotels, along with bathrooms, landscaping and kitchens.
Equipment efficiency also makes a significant difference. ENERGY STAR reports that certified commercial clothes washers use approximately 45% less water and 9% less energy than standard commercial models.
For hotels and gyms processing thousands of pounds of laundry, even relatively small efficiency differences can accumulate into significant operating expenses over time.
Equipment Isn’t a One-Time Expense
Buying commercial washers and dryers is only the beginning.
Businesses must also budget for installation, preventive maintenance, repairs, replacement parts and eventually new equipment.
Then there’s downtime.
If a hotel’s washer fails during a sold-out weekend, the problem isn’t limited to the repair bill. Housekeeping still needs clean sheets and towels to turn rooms.
If a gym loses laundry capacity during peak hours, members still expect clean towels.
With an outsourced laundry service, the commercial laundry provider assumes much of the equipment and processing responsibility.
Linen and Towel Replacement Can Be Expensive
Sheets and towels are business assets, but they don’t last forever.
Repeated washing, excessive temperatures, incorrect chemical concentrations, over-drying and improper handling can accelerate fabric deterioration. Poor stain treatment can also cause usable linens to be discarded prematurely.
Professional commercial linen service uses controlled processes designed to deliver consistent results while properly caring for textiles.
For businesses maintaining hundreds or thousands of sheets and towels, extending textile life can have a meaningful impact on operating costs.
Don’t Forget the Cost of Your Laundry Room
There’s another expense that’s rarely included when calculating commercial laundry cost: real estate.
Washers, dryers, sorting areas, folding tables, laundry carts, chemical storage and linen shelving all occupy valuable square footage.
For a Los Angeles hotel or fitness center, that space has economic value.
When comparing in-house and outsourced laundry, ask another question: Could that space be used more productively for storage, housekeeping operations, fitness equipment, amenities or another revenue-producing purpose?
In-House vs. Outsourced Commercial Laundry
| Cost or Responsibility | In-House Laundry | Outsourced Laundry |
| Laundry labor | Business | Laundry provider |
| Washer/dryer investment | Business | Laundry provider |
| Equipment maintenance | Business | Laundry provider |
| Equipment breakdowns | Business | Laundry provider |
| Water and energy for processing | Business | Laundry provider |
| Laundry chemicals | Business | Laundry provider |
| Processing capacity | Limited by equipment | Scalable with provider |
| Laundry management | Business | Primarily provider |
| Pickup and delivery | Not applicable | Available with provider |
| Linen ownership/replacement | Typically business | Depends on agreement |
For many businesses, the value of outsourcing isn’t tied to one expense. It’s the ability to transfer multiple costs and operational responsibilities simultaneously.
Outsourcing Makes It Easier to Scale
Laundry demand isn’t always predictable.
Hotels experience busy weekends, conventions, weddings, holidays and seasonal occupancy changes. Gyms encounter membership growth, seasonal demand and fluctuations in daily towel usage.
An in-house operation must have enough equipment and staff to accommodate peak demand, even when that capacity isn’t necessary every day.
A professional business laundry service provides greater flexibility. Laundry volume can increase without requiring the business to purchase another washer, find additional space or add another laundry employee.
That’s one of the biggest advantages of outsourced commercial laundry: capacity can grow with the business.
Is It Cheaper for a Hotel or Gym to Outsource Laundry?
It can be, but outsourcing isn’t automatically less expensive for every business.
A high-volume hotel with modern equipment, inexpensive utilities, adequate space and an efficient laundry staff may find that operating an on-premise laundry makes financial sense.
The important comparison is not the outsourced price versus the cost of detergent and utilities.
Businesses should compare the outsourced price against their total internal cost, including labor, utilities, chemicals, equipment depreciation, repairs, downtime, linen replacement, management and facility space.
Only then can you determine which model makes financial sense.
Why Hotels and Gyms Choose LaundryPro
LaundryPro provides professional commercial laundry service for hotels, gyms, fitness centers, Airbnb and vacation rental operators, spas, medical offices and other businesses throughout the Los Angeles area.
As the premier commercial laundry service in Los Angeles, LaundryPro offers businesses a scalable alternative to managing high-volume laundry internally.
Commercial services can include professional processing of towels, sheets, bedding, linens and other washable business textiles along with dependable turnaround and convenient pickup and delivery.
Instead of staffing and operating your own laundry facility, your team can concentrate on what matters most: your guests, members and customers.
Frequently Asked Questions About Outsourcing Commercial Laundry
What are the hidden costs of in-house commercial laundry?
Hidden commercial laundry costs can include employee labor, water, energy, equipment depreciation, maintenance, repairs, chemicals, textile replacement, supervision, downtime and the value of space occupied by the laundry operation.
Why do hotels outsource their laundry?
Hotels may outsource laundry to reduce staffing and equipment demands, obtain additional processing capacity, maintain consistent turnaround and allow housekeeping employees to concentrate on rooms and guest service.
Should gyms outsource towel laundry?
Gyms with high towel volume may benefit from outsourcing when employee labor, equipment, utilities, processing time and storage make managing towels internally inefficient or difficult to scale.
Is outsourced commercial laundry cheaper than doing it in-house?
It depends on the business. The most accurate comparison includes all in-house expenses-not just detergent and utilities. Labor, equipment, maintenance, repairs, replacement textiles, management and space should also be included.
What should I look for in a commercial laundry service?
Businesses should consider processing capacity, reliability, turnaround time, pickup and delivery options, quality control, textile care, scheduling flexibility and the provider’s experience handling their type of commercial laundry.
Find Out What Your Laundry Is Really Costing You
The biggest problem with in-house laundry may not be that it’s expensive. It’s that many businesses don’t know exactly how much they’re spending on it.
Calculate the complete cost. Include your employees, utilities, equipment, chemicals, repairs, linens, management and space. Then compare that figure with outsourcing.
If the numbers-or the operational headaches-no longer make sense, talk to LaundryPro.
As the premier commercial laundry service in Los Angeles, LaundryPro can develop a commercial laundry program around your business’s volume, schedule and textile needs, giving you one less operation to manage and more time to concentrate on your customers.
