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How Much Does It Cost to Build A Hotel

$150 - $500
cost to build a hotel (SF)
$15 million - $35 million
average cost to build a hotel
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Key Takeaways

Key PointDetails
Cost Per Square Foot$150 – $500
Cost Per Room$50,000 – $800,000
Total Average Cost$15 million – $35 million
National Average Cost$25 million
Minimum Cost$7 million
Maximum Cost$70 million

Building a hotel can be a significant investment, but it offers the potential for substantial returns through tourism and business travel. Understanding the costs involved and the different options available can help you plan your hotel construction project effectively.

Cost to Build a Hotel

The cost to build a hotel varies based on its size, type, and rating. Below is a breakdown of average costs:

Average Cost to Build a Hotel

National Average Cost$25 million
Minimum Cost$7 million
Maximum Cost$70 million
Average Range$15 million – $35 million

Cost to Build a Hotel by Rating

The star rating of a hotel influences the cost per square foot and per room.

Number of StarsAverage Cost Per Square FootAverage Cost Per Room
5$330 – $550$500,000 – $800,000
4$260 – $410$250,000 – $500,000
3$190 – $380$150,000 – $250,000
2$130 – $230$50,000 – $150,000

Five-Star Hotels

Five-star hotels offer luxurious amenities and high-end finishes, leading to higher construction costs. These hotels often feature upscale restaurants, spas, and concierge services to provide an exceptional guest experience.

Four-Star Hotels

Four-star hotels provide upscale accommodations with more amenities than lower-rated hotels. They typically include fine dining options, fitness centers, and well-appointed rooms to cater to business and leisure travelers.

Three-Star Hotels

Three-star hotels offer moderate accommodations with some additional amenities. They often provide comfortable rooms, basic dining options, and facilities like swimming pools or fitness centers.

Two-Star Hotels

Two-star hotels provide basic accommodations at a lower cost. These hotels generally offer standard rooms with limited amenities, suitable for budget-conscious travelers.

Cost to Build a Specialty Hotel by Type

Different types of specialty hotels come with varying costs.

Hotel TypeAverage Cost Per Square Foot
Guest House$100 – $500
Boutique Hotel$190 – $550
Casino$300 – $550
Resort$300 – $550

Guest House

Guest houses are smaller, often more personalized accommodations. They typically offer a cozy and intimate atmosphere, making them ideal for small groups or individual travelers.

Boutique Hotel

Boutique hotels offer unique, stylish accommodations, often in urban settings. These hotels focus on providing a distinct and memorable experience with customized services and décor.

Casino

Casinos require additional space and infrastructure for gaming facilities. Building a casino involves specialized construction to accommodate gaming floors, security systems, and entertainment areas.

Resort

Resorts offer extensive amenities and recreational facilities, increasing the cost. They often include features such as swimming pools, spas, golf courses, and multiple dining options to provide a comprehensive vacation experience.

Hotel Construction Cost Factors

Several factors influence the overall cost of building a hotel, including materials, labor, and additional features.

Foundation Cost

The foundation provides stability and support for the hotel structure. The cost varies based on the soil conditions, building size, and type of foundation used.

Framing Cost

Framing forms the skeleton of the building, supporting walls and floors. The cost depends on the materials used, such as wood or steel, and the complexity of the design.

Drywall Cost

Drywall installation is essential for finishing interior walls and ceilings. The cost includes materials and labor, with prices varying based on the quality and type of drywall used.

Flooring Cost

Flooring materials and installation impact the overall look and feel of the hotel. Options include carpet, tile, hardwood, and vinyl, each with different price points and durability.

Plumbing Cost

Plumbing is critical for bathrooms, kitchens, and other water-related facilities. The cost includes pipes, fixtures, and labor for installation and can vary based on the complexity of the plumbing system.

Interior Trim Cost

Interior trim adds decorative elements to doors, windows, and baseboards. The cost depends on the materials used, such as wood or composite, and the level of detail required.

Siding Cost

Siding protects the exterior of the building and adds aesthetic appeal. Common materials include vinyl, wood, and fiber cement, each with different costs and maintenance requirements.

Roof Cost

The roof protects the building from weather and enhances its design. The cost varies based on the materials used, such as asphalt shingles, metal, or tile, and the complexity of the roof design.

Insulation Cost

Insulation helps maintain temperature and reduce energy costs. The cost depends on the type of insulation used, such as fiberglass, foam, or cellulose, and the required R-value.

Electrical Wiring Cost

Electrical wiring is essential for lighting, appliances, and other electrical needs. The cost includes materials and labor for installation and can vary based on the complexity of the electrical system.

HVAC System Cost

The HVAC system provides heating, cooling, and ventilation for the hotel. The cost depends on the size of the building, the type of system used, and the efficiency of the equipment.

Interior Painting Cost

Painting the interior walls and ceilings adds color and finish to the rooms. The cost includes materials and labor, with prices varying based on the quality of paint and the number of coats required.

Countertops Cost

Countertops are used in kitchens and bathrooms, providing functionality and style. The cost depends on the materials used, such as granite, quartz, or laminate, and the complexity of the installation.

Door Installation Cost

Doors provide access to rooms and enhance security and privacy. The cost varies based on the type of door, such as solid wood, hollow core, or metal, and the complexity of the installation.

Window Replacement Cost

Windows allow natural light and ventilation while adding to the building’s aesthetics. The cost depends on the type of window, such as double-hung, casement, or sliding, and the materials used.

Lighting Fixture Installation Cost

Lighting fixtures illuminate the hotel, enhancing its ambiance and functionality. The cost includes materials and labor, with prices varying based on the type and quality of fixtures used.

Toilet Installation Cost

Toilets are essential for guest bathrooms and other facilities. The cost includes materials and labor for installation, with prices varying based on the type and quality of the toilet.

Sink Installation Cost

Sinks are used in bathrooms and kitchens, providing water access. The cost depends on the type of sink, such as pedestal, undermount, or vessel, and the materials used.

Cabinet Installation Cost

Cabinets offer storage space in rooms, kitchens, and other areas. The cost depends on the materials used, such as wood or laminate, and the complexity of the installation.

Labor Cost

Labor costs vary based on the complexity of the project and the region. Skilled labor for specialized tasks, such as electrical or plumbing work, can significantly impact the overall cost.

Hotel Building Cost FAQs

Is Building a Hotel a Good Investment?

Building a hotel can be a good investment, offering the potential for substantial returns through tourism and business travel. However, it requires careful planning, a significant initial investment, and a thorough understanding of the market.

How Long Does It Take to Build a Hotel?

Building a hotel typically takes 12 to 36 months, depending on the size and complexity of the project. This timeline includes planning, permitting, construction, and finishing.

Is It Cheaper to Buy or Build a Hotel?

Building a hotel allows for customization and can potentially offer better returns in the long run, but it is generally more expensive upfront compared to buying an existing hotel. Buying an existing hotel provides immediate operational capacity but may require renovations.

How Big Is the Average Hotel Room?

The average hotel room size varies by rating and type, typically ranging from 250 to 400 square feet. Luxury hotels may offer larger rooms and suites, while budget hotels provide more compact accommodations.

Getting Estimates from Hotel Construction Companies

When seeking estimates for your hotel construction, consider the following tips:

  1. Get Multiple Quotes: Compare prices and services from different contractors.
  2. Check References: Look for reviews and testimonials from previous clients.
  3. Verify Credentials: Ensure the contractor is licensed, insured, and experienced in hotel construction.
  4. Ask About Customization: See if they offer custom solutions to meet your specific needs.

Questions to Ask Hotel Builders

  • How long have you been in business?
  • Can you provide references from similar projects?
  • What services are included in your standard package?
  • Do you offer any specialized hotel designs?
  • What are your rates for additional services?
  • How do you handle unexpected issues or additional requests?

Cost to Build a Hotel Summary

Building a hotel can be a significant investment with the potential for substantial returns. By understanding the costs, benefits, and available options, you can make an informed decision that meets your needs and budget.

For more information on hotel construction and to explore other cost-related guides, visit our detailed articles on home improvement cost and commercial building construction cost.

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