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Renovating your Hotel? How to Calculate Your Costs

Hotel renovations are one of the most important necessities of your business, especially considering how often they are needed and how much they matter to the visitors, tourists and business officials who stay at your hotel. They affect not only the look of your hotel but also the ratings that people leave online when they leave your hotel. These reviews have the potential to either soar your business or bring it down.

As a hotel owner, it is your responsibility to make sure that your hotel is up to date on all its renovations and that all your facilities are upgraded and in perfect working condition. However, most hotel owners don’t anticipate the costs of renovations because of either lack of experience or simply because they were not anticipating so many of them.

To make things easier for you as a hotel owner, we have come up with a guide that will help you calculate your costs so that if and when you do decide to renovate, you have an estimate in your head about the scale of your operations and the costs associated with the renovations.

Determining the scope of the renovation

The first step in your hotel renovation plan should always be to determine the scope of the renovations. This includes considering how much and how extensive your renovations and remodeling will be. How does one determine this? It’s simple: How much time has passed since the last renovations, and how extensive were those renovations? If the answer to both your questions is that that the previous renovations were quite a while back and weren’t as extensive, then it might be time to take into account the scope for the renovation of the hotel as a whole. However, this depends on the hotel. Other things that contribute as factors for determining the scope are floor coverings, fixtures, wall coverings, furniture, electricity wiring, and so on.

A big mistake many hotel owners make is that they only renovate their hotel when it starts to look run down. By then it’s already too late. Your renovation cost per room can be much higher, depending on the thoroughness of the work required. To avoid this situation, take regular stock of your rooms and facilities by following these rules:

  • You should renovate coverings (wall coverings, floor coverings), bedding, and other soft items once every six years at a minimum.
  • Major renovations require more time, including furniture, fixtures, and other items in the building. These should be done every ten to fifteen years.
  • You should completely restore your entire hotel every twenty-five years.

Now that you know the timelines for renovations, you should assess the timeline for your hotel. When was the last time it was renovated for soft items or major renovations, and when was the last time you had a complete makeover of the hotel?

If your hotel is new, then you needn’t worry about the long-term renovations right now. Instead, what you should do is plan it out over the next two decades and start saving money right now. This way, when the time comes for renovations, you will be prepared. However, if your hotel has been functioning for the past twenty or so years and hasn’t been renovated, then it is due for a complete makeover.

Determining the tier of your hotel

There are six main tiers in which your hotel can fall into:

  • Economy
  • Midscale
  • Extended stay
  • Upscale
  • High upscale
  • Luxury

Depending upon which tier your hotel is in, the costs of your renovations will range from economical to more expensive. For example, if a single hotel room renovation for an economy hotel will cost you two thousand dollars, renovating the same room for an upscale hotel will cost you around six thousand dollars, and renovating the same room for a luxury hotel would cost you approximately fifteen thousand dollars.

Overall hotel renovations cost calculation

This is the most challenging part of your renovation, as this will require you to be thorough when considering all the things that need renovating. You can easily do this, however, if you have a method. You can start by making a list of items that you will have to replace or renovate and how much fees they’d cost individually. For reference, here’s a list:

  • Interior designer
  • General contractor
  • Floor and wall coverings
  • Bedding
  • Windows and window treatments
  • Shower curtains
  • Towels
  • Artwork
  • Furniture and fixtures
  • Technology upgrades
  • Security feature upgrades
  • Lighting
  • Signage
  • Heater and AC units
  • Room amenities like minibar and TV and microwave
  • Labor costs for electricians and plumbers and technicians
  • Fees required for building permits

Now that you have some idea what to look for when making a list, go about your hotel and come up with your list and assign a budget to each item. You don’t have to do this by yourself. A renovation contracting company can take care of this task for you, as well as ensure overlooking the entire process.

Determining individual room renovation costs

The hard part of the whole process is behind us. We have considered the costs of the overall budget, but now we must start thinking about the costs of individual rooms. Do this by taking one room as a sample study and taking into account all the things that comprise it, such as fixtures, furniture, coverings, bedding, etc. Make a list of these things and cross-reference costs either online or by consulting with a firm. This last step will help you in making small renovations on a room-to-room basis, without overwhelming your budget.

There you have it, our guide for calculating costs when renovating your hotel. Remember, changing with the times, especially in the hotel business, is essential. To be resilient to renovating means that with time, your facilities will grow old and worn out, thus making your hotel unappealing to those who visit it, and off-putting to those who intended to stay in it.

Did you know that ProGroup Contracting is a professional hotel renovation company? If you’re looking for interior or exterior hotel renovation services, we have over 25 years of experience. We know how to get the job done fast and done right. Contact our excellent customer service team at 1-800-690-2539 for inquiries and visit our webpage at for a FREE Estimate!