Hotel renovations help give your hotel property a competitive edge in hospitality. But before you can make any renovations, you need to understand the expected hotel renovation costs.
Want to know the cost of hotel renovations per room—and step by step process of hotel renovations?
We’ll tell you below.
What Makes Hotel Renovations Different from Other Commercial Renovations?
Hotel renovations differ from other commercial renovations in several key aspects. Unlike typical commercial projects, hotel renovations must account for the continuous operation of the property because they often remain open during the renovation process. This can present a challenge—one that requires careful scheduling to minimize disruption. (We’ll talk more about this later.)
Overview of Hotel Renovation Costs
Before you can even decide to make any hotel renovation, you need to accurately estimate hotel renovation costs per room. Unfortunately, there is no exact answer.
But there are a series of factors you can consider to determine correct costs. For instance:
Scope of Renovation
Simple updates such as changing decor and replacing furniture typically cost compared to complete overhauls that involve structural changes to the rooms.
Quality of Materials
The choice of materials can also impact the hotel renovation costs, so make sure to consider the return on investment of the materials you’re choosing and the audiences you’re trying to attract. Think about whether you want to use economy, upscale, or luxury materials—all of which have the ability to impact your overall budget.
Timeline and Duration
You should want your renovations to be handled quickly. The longer your renovations take, the less competitive your hotel becomes, and the more expensive your costs become in terms of labor and equipment.
Location
Selecting the location of your hotel is also important. Each region has different elements—whether it’s weather, building codes, or permits—that can impact the cost of the hotel renovations.
Breakdown of Renovation Costs by Hotel Area
When planning a hotel renovation, it’s crucial to break down the costs for specific areas within the hotel to ensure an accurate and comprehensive budget. Here’s what you should consider:
Lobby
Lobby renovations are often one of the first things on many hotel wonders minds, especially after they just start making a purchase. After all, it is the first thing guests see.
However, lobby renovation costs can range from $50,000 to $200,000. Some of the update may include:
- Reception desks
- Seating areas
- Lighting
- Decor.
Recreation Facilities (Gym, Spa)
Recreation facilities such as gyms and spas play a significant role in guest satisfaction. Renovation costs for these areas can typically range from $50,000 to $150,000.
The updates typically include:
- New equipment
- Flooring
- Mirrors
- Lighting
If you’re wanting to create a more modern gym, you could also include a relaxing spa or sana.
Pool Area
The pool area is one of the most popular attractions for guests, and renovating it can enhance the hotel’s value.
Although pool room renovation may costs from $100,000 to $500,000, you can update the following features to give you hotel a competitive edge:
- Pool resurfacing
- Lounge furniture
- Safety features
- Cleaning technology
- Attractions (Slides, Diving boards, climbing walls)
Another thing to consider is adding a hot tub for guests who may not necessarily want to only enjoy a pool.
Restaurants and Bars
Restaurants and bars are central to a hotel’s dining experience. Renovation costs for these areas can range from $100,000 to $500,000.
Key updates include:
- Tables
- Countertops
- Chairs
- Lighting Fixtures
- Kitchen equipment
- Bar area
The Comprehensive Hotel Renovations Process
Now that you know the average cost of hotel renovations, let’s talk about optimizing for cost-effectiveness.
In other words, how can you speed up the hotel renovation process?
To start, you should work with professional designers, architects, and construction management teams who help you with creating a detailed renovation plan.
If you collaborate with a high-quality team like us at Hotel Solutions Group, it will look something this:
Planning Before Construction
During the pre-construction phase, detailed planning and resource allocation happens. This phase involves assessing the current state of the hotel, setting a realistic budget, and creating a timeline. We always work closely with clients to ensure all necessary permits are obtained and that the project is set up for success from the start.
Safety and Comfort Measures During Renovation
During this phase, construction teams will do the following to ensure the safety of guests, construction teams, and hotel employees:
- Schedule noisy activities during hours that are least disruptive to guests
- Erect barriers to keep guests away from construction zones to make sure that they can move safely around the hotel.
- Use clear signage to direct guests away from construction areas and toward amenities.
Execution of Renovation Work
The construction phase is where the actual renovation takes place, and efficient project management keeps the project on track and within budget. That’s why we provide on-site management, coordinate with subcontractors, and ensure that all materials are available as needed to avoid delays.
Post-Renovation Activities
After the construction is completed, the post-construction phase includes final inspections, addressing any punch list items, and ensuring that the renovated areas meet all quality standards. This phase also involves walking staff through the new areas, setting up clear procedures, and training hotel staff on new features.
Ensuring Guest Comfort Post-Renovation
Even after the hotel renovations are complete, you should want to make sure your efforts lead to quality results. As a way to do this, you should:
- Conduct a deep clean of all renovated areas to remove any remaining dust and debris to create a pristine environment for guests. (We do this for you.)
- Test all new installations, systems, and features to confirm they are functioning correctly and efficiently. (We also do this.)
- Establish a mechanism for collecting guest feedback on the new renovations to address any issues promptly and ensure continuous improvement.
Budget and Financing Strategies for Hotel Renovations
Because hotel renovations can be expensive—that is, depending on what you are renovating—you should practice budgeting and financial strategies that make it easier.
For instance:
Creating a Realistic Budget
Setting a realistic budget is the first step in making sure every renovation is successful. It involves considering all potential costs—from materials and labor to permits and contingencies.
Exploring Financing Options
Several financing options are also available for hotel renovations, including traditional loans, SBA 504 loans, and PACE loans for eco-friendly projects. We at Hotel Solutions Group can even assist you in exploring and securing the best financing options for your projects. But we can also help you in a few other ways, which we will talk about next.
Advantages of Partnering with Hotel Solutions Group
Here are some of the major advantages that you get when partnering with Hotel Solutions Group for your hotel renovations.:
Optimizing Resource Management
Hotel Solutions Group stands out from the rest in terms of the industry with its efficient resource management. On-site resources and pre-arranged materials reduce waiting times and labor costs, which ensures that projects are completed swiftly to save both time and money.
Reducing Material Waste
Effective inventory management and recycling of leftover materials is another factor that many construction groups do not consider but is a core element of our approach. By minimizing material wastage, we help control hotel renovation costs and contribute to sustainable construction practices.
Accelerating Project Completion
Our capability to reduce project timelines by up to 90 days enables hotels to open earlier and start generating revenue sooner.
AS a result, we speed up the hotel renovation process through meticulous planning and efficient execution.
Why do we do this?
To ensure that all aspects of the renovation are handled seamlessly and so you begin getting a return on your investment as soon as possible.
Streamline Your Hotel Renovation Process Us
Partner with Hotel Solutions Group for a streamlined, efficient construction process.
Our expertise in managing complex logistics ensures timely delivery and optimal resource allocation.
Contact us today to explore how our comprehensive services can bring your hotel project to life.
