How Much Does It Cost To Build A Hotel ?


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Build Hotel Costs

Professionals & Services Cost Guides      Custom Home Builders      Build Hotel Costs

The hospitality industry is always a lucrative one, and it is why so many people are curious about projects like hotels and motels. Providing accommodations to travelers can be a very wise way to monetize a great location, but as is the case with all other construction projects, the cost to build a hotel depends on a tremendous range of variables and factors. These factors include size, number of rooms, amenities (pool, restaurant, shops, and fitness center, for example), whether it is basic or luxurious, the size of each room, and whether there will be balconies or terraces.

The per square foot price can vary based on factors like the cost of the architectural firm, the contractor, and such things as the price for land purchase, prep work, parking lot pavements, and all of those amenities mentioned.

Build a hotel: 155 rooms, 325 sq.ft. rooms with full bathrooms.

Item Percentage Cost
Architect and Contractor 10-17% (This is on top of actual construction costs and nudges the total amount to more than 100% of anticipated budget) $1,100,000-$3,740,000
Baths 15% $3,300,000
Exterior Finish/Walls 10% $2,200,000
Floor 5% $1,100,000
Foundation 4% $880,000
Interior Finishes 23% $5,060,000
Kitchen 8% $1,760,000
Plumbing 9% $1,980,000
Roofing 6% $1,320,000
Windows and Doors 2% $440,000
Special Features This takes the balance of the total cost $2,860,000
Total Cost   $22,000,000-$25,740,000

Other considerations and costs

  • It is vital to remember that a hotel can be as basic as desired, with only a small office and lobby and minimal service spaces (laundry, kitchen, and so on). However, it might, as noted, be full of amenities that monetize the space to the maximum amount (including conference spaces, event halls, meeting rooms, and much more). This array of spaces was not factored into the “average” cost.
  • Opting for the best materials is a savvy investment over the long term as they withstand the wear and tear that most public spaces endure.
  • Check out our guide if you need a loan for your home improvement project
  • If you are a builder and need insurance check out our Builders Risk Insurance Guide

DIY considerations

  • Hotel construction is a massive undertaking, and it is unwise even to consider working as the contractor since this job typically requires immense experience and the ability to handle everything from permits to hiring and more. If looking for a smart investment in a heavily traveled area, a hotel of this kind may be a perfect choice, just be sure to partner with experts to get the best results.


  • Craftsman Estimator Costbook, complete series year 2019.
  • Latest prices found on Home Depot and other vendor Web sites.
  • Literature review of DIY Web sites.
How much does it cost to build a hotel in your city?
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Cost by city

  • New York, NY$38,344
  • Bronx, NY$31,509
  • Brooklyn, NY$26,261
  • Philadelphia, PA$32,761
  • Washington, DC$28,428
  • Atlanta, GA$25,721
  • Miami, FL$23,393
  • Fort Lauderdale, FL$24,504
  • Minneapolis, MN$28,746
  • Chicago, IL$33,493
  • Houston, TX$34,546
  • San Antonio, TX$23,190
  • Austin, TX$26,258
  • Denver, CO$22,185
  • Phoenix, AZ$23,407
  • Las Vegas, NV$25,690
  • Los Angeles, CA$28,947
  • San Diego, CA$26,268
  • San Jose, CA$31,728
  • Seattle, WA$23,229

Local costs have been calculated by accounting for labor and material cost differences across different cities. To get accurate cost estimates, indicate yours: