Travelling is one of the common elements of people around the world. The majority of people love to explore various countries, while some travel to learn and grow in the world. Whatever the reason is, the hotel is the mandatory element in the life of the travelers. No matter, either it’s a conference in another city, or celebrating the new year in Las Vegas, you will need to stay in the hotel.
In the travel diaries, there are many top hotels that are highlighted and people love to visit. Therefore, investing in building a hotel is the ideal option to generate a huge amount of money every year. The top businessmen and real estate investors, always try to construct or purchase a hotel to double their annual revenue. But when it comes to constructing hotels it is important to calculate the cost you need to spend.
From suspended ceiling systems prices to the designing of the hotel, you will be required to manage all the work. To easily surmise hotel construction cost per room lets continue reading this blog.
Determine The Type of Hotel You Want to Build
Before surmising hotel construction costs, it is mandatory to know which type of hotel you are planning to build. As the hotel business expands, the hotels divided into categories. The top three categories include
- 3-star Hotel: The three-star hotel basically offers the average services to their customers. It’s cheaper in rates as compared to 4 and 5-star hotels with limited facilities.
- 4-star Hotel: This class of hotel provides full services with a well-equipped gym, lobby lounge, and restaurants & bar.
- 5-star Hotel: A luxury property that provides numerous extra perks to their customers. Generally, it is more expensive than 3 and 4-star hotels with more facilities.
Construction Cost of Building an Average Hotel
The cost of building an average hotel varies depending on the land and the state policies. Though it is not difficult to calculate the construction cost if you know what facilities you are willing to add. You will need to answer the questions like does the hotel have a conference facility? Are you willing to add a gym or restaurant? Is the lobby fancy or plain?
For the average hotel in the United States, you will require 48 thousand square fit space with 115 rooms that occupy 325 square feet. The overall cost of an average hotel will be 22.2 million dollars. Whereas the hotel construction cost per room are as follows
- Construction Cost of 3 Star Hotel: the hotel construction cost per room will be around 221 dollars. The overall cost will be depending on the variables like location, nearby competition, dining, lobby lounge, swimming pool, and gym.
- Construction Cost of 4 Star Hotel: The 4-star hotel rooms are larger and well furnished with more facilities as compared to 3 stars. The average construction cost per room will be 318,200 dollars. The overall cost for a 100 room hotel will be approximately 31.8 million dollars.
- Construction Cost of 5 Star Hotel: This is the luxury hotel that cost 604,200 dollars for the construction of per room. The overall average cost for the hotel will be over 60 million dollars for 100 rooms.