Hotels must move with the trends to keep them in the front row in the market. Since customer satisfaction and regular up-gradation of facilities are the major factors in the hotel business, renovation is an essential process.
Although hotel owners knew this, the cost is the most important factor that resists them from doing the renovation. Here are the steps to calculate hotel renovation costs.
STEP 1: DETERMINE THE SCOPE OF RENOVATION
Decide the extend of your hotel renovation and think of the last set of hotel renovation projects and how in-depth they were. The timing of hotel renovation projects is:
- Minor renovations every 6 years (hotel floor coverings, wallcoverings, bedding, drapes, etc.)
- Major renovation every 12 to 15 years (furniture, fixtures, and common areas)
- Complete renovation after 25 to 50 years
It is important to know when were your last hotel renovation projects completed to determine the type of renovation that you currently need.
STEP 2: DECIDE THE MARKET TIER
The renovation costs will vary depending upon what market tier to which your hotel belongs to. The common market tiers are economy, midscale, extended stay, upscale, high upscale, luxury. The higher the tier, the more is your hotel renovation cost. For minor renovations at an economy hotel may cost between $2,200 – $3,000 per room. Similarly, renovation at a luxury hotel would cost about $12,000 – $16,000 per room.
STEP 3: CALCULATE OVERALL BUDGET
Creating a budget for the entire project is the most difficult step. Don’t forget to include items such as interior designer fees, general contractor, wall coverings, floor coverings, window treatments, bedding, towels and shower curtains, art, furniture, fixtures, technology upgrades, updated security features, lighting, signage, heating, and air conditioning units, room amenities such as mini-fridge, TV, coffee pot, microwave, etc., fees for building permits, labor costs (electrician, plumber, inspectors, IT, etc.) in your budget.