Hotel Renovation Costs per Room: Economy, Upscale, and Luxury Breakdown

Sara Hospitality | Oct 19, 2023

Are you searching for the hotel renovation cost? A hotel renovation is considered necessary, especially when required, and how much it means to visitors, guests, travelers and business officials. The guest's impression will affect the hotel's look and the online rating, which the guest will leave while checking out. All these reviews have the potential to either soar or bring down the business entirely. So, as hotel owners, you are responsible for ensuring that the hotel ambiance is updated with its renovation and that all facilities are upgraded in perfect condition. 

While planning for hotel renovation, the hoteliers usually don’t anticipate renovation costs due to a lack of experience or guidance. So, to simplify things for hotel owners, we came up with a guide that allows you to calculate renovation costs and precise estimations of the scalability of the business. 

What is the Hotel Renovation Room Per Cost?

The renovation cost of the hotel will ultimately depend on how much work you intend to do and the type of establishment. But how to calculate the average cost? There is a renovation cycle that starts around the five-star hotel’s third to sixth year, the average cost is around $8000 to $12000 per room and works its way to about 50 years, and it usually costs approximately $100000 for each room. That’s how the average complete room renovation cost is divided for hotels classified as two through five starting in 2017. 

  • Economy - $4130 to $5963
  • Midscale - $9033 to $12470
  • Upscale - $14972 to $20253
  • Upper Upscale - $20241 to $27118
  • Luxury - $33390 to $46419

Where the Prices Come From:

For instance, custom hospitality furniture prices will vary considerably. Due to that one reason, the room per cost is defined in ranges. A bed and nightstand combination alone will vary from $700 to $3000. Moreover, a dresser, desk combination, and TV stand will vary between $1000 to $5000. It is crucial to weigh all your choices when buying custom-made hospitality furniture for guestrooms. Ensure that you completely understand all areas of cost on which renovation takes place. 

How to Calculate a Renovation Budget? 

Before estimating the renovation budget, decide which products will offer the highest value regarding visitor loyalty and repeat bookings. The common products included in the renovation budget are:

  • Bed - linen, and towels
  • Advanced solutions like keyless access
  • Updated furniture, fixtures, and equipment such as lighting, mini-fridge, artistry, and outlets.
  • Newly designed walls and doors
  • Normal contractor costs
  • In-house entertainment
  • Latest blinds, curtains, and flooring

Hotel Areas Where Renovation Cost Per Room is Unpredictable

The hotel owners can determine if you consider it from a broader perspective. So, deciding the price of furniture is only one step. If it customizes, you have the manufacturing process and lead times to consider. So, keep in mind while considering these budget-busting hazards:

  • Lacking behind schedule
  • Selecting inexperienced custom hospitality furniture manufacturer 
  • Material choices
  • Improper furniture packaging and labeling

Any of these mistakes will lead to a waste of time and money. 

How to Keep Furniture Costs in Line with Your Budget

The most cost-effective and stress-free outcomes are achieved by choosing the proper manufacturer, knowing the lead times for materials, meeting all deadlines, and using the correct labeling.

Here are some tips to help you avoid hazards.

1). Do Some Research

Look up the manufacturer and visit the facility and take a tour. Request references and follow up on them.

2). Design should be Cost - Effective and Stylish

A cost-effective and stylish design is possible. You can design a stylish room without breaking the bank. Finding this balance can be challenging, so look for a guide on cost-conscious furniture.

3). Keep Track of your Progress

Regularly check in to see what you can do to make things go smoothly. It is essential to keep on track without compromising on quality.

4). Check the Packaging and Labeling Procedures before the Product is ready for Shipping

Give the labeling info to ensure each item goes to the correct place. You should choose packaging that will protect the furniture so you won't need to spend time on repairs or replacement.

The hotel and furniture manufacturer must work together to control the furniture cost of each room. Custom hotel furniture manufacturers can reduce unexpected costs and help you achieve your desired style and budget.


The hotel and furniture manufacturer must work together to control the furniture cost of each room. Custom hotel furniture manufacturers can reduce unexpected costs and help you achieve your desired style and budget. Check out Sara Hospitality to streamline project management and learn more about the timelines you should consider when choosing a hotel manufacturer.