Hotel Construction Cost Overview
Hotel construction is a complex, multi-system undertaking with costs heavily influenced by the property class (budget vs. luxury), room count, amenity package, and location. In 2026, hotel construction costs range from $222 to $385 per square foot, or approximately $80,000 to $250,000+ per room depending on the service level.
Hotel Construction Cost by State — 2026
The table below shows the estimated cost per square foot for hotel construction in all 50 US states plus DC, sorted from lowest to highest cost.
| State | Cost / Sq Ft | 2,500 Sqft Estimate | 5,000 Sqft Estimate | Cost Index |
|---|---|---|---|---|
| Mississippi | $222 | $555,000 | $1,110,000 | Below Avg |
| Arkansas | $228 | $570,000 | $1,140,000 | Below Avg |
| Alabama | $234 | $585,000 | $1,170,000 | Below Avg |
| West Virginia | $234 | $585,000 | $1,170,000 | Below Avg |
| Kentucky | $245 | $612,500 | $1,225,000 | Below Avg |
| Oklahoma | $245 | $612,500 | $1,225,000 | Below Avg |
| Louisiana | $251 | $627,500 | $1,255,000 | Below Avg |
| South Carolina | $251 | $627,500 | $1,255,000 | Below Avg |
| South Dakota | $251 | $627,500 | $1,255,000 | Below Avg |
| Tennessee | $251 | $627,500 | $1,255,000 | Below Avg |
| Indiana | $257 | $642,500 | $1,285,000 | Below Avg |
| Kansas | $257 | $642,500 | $1,285,000 | Below Avg |
| New Mexico | $257 | $642,500 | $1,285,000 | Below Avg |
| Wyoming | $257 | $642,500 | $1,285,000 | Below Avg |
| Missouri | $262 | $655,000 | $1,310,000 | Below Avg |
| North Dakota | $262 | $655,000 | $1,310,000 | Below Avg |
| Texas | $262 | $655,000 | $1,310,000 | Below Avg |
| Iowa | $271 | $677,500 | $1,355,000 | Below Avg |
| Nebraska | $271 | $677,500 | $1,355,000 | Below Avg |
| North Carolina | $271 | $677,500 | $1,355,000 | Below Avg |
| Georgia | $274 | $685,000 | $1,370,000 | Below Avg |
| Ohio | $274 | $685,000 | $1,370,000 | Below Avg |
| Maine | $279 | $697,500 | $1,395,000 | Below Avg |
| Michigan | $279 | $697,500 | $1,395,000 | Below Avg |
| Montana | $279 | $697,500 | $1,395,000 | Below Avg |
| Florida | $285 | $712,500 | $1,425,000 | Average |
| Idaho | $285 | $712,500 | $1,425,000 | Average |
| Utah | $291 | $727,500 | $1,455,000 | Average |
| Virginia | $291 | $727,500 | $1,455,000 | Average |
| Wisconsin | $291 | $727,500 | $1,455,000 | Average |
| Arizona | $299 | $747,500 | $1,495,000 | Average |
| Delaware | $299 | $747,500 | $1,495,000 | Average |
| Vermont | $302 | $755,000 | $1,510,000 | Average |
| New Hampshire | $308 | $770,000 | $1,540,000 | Average |
| Pennsylvania | $308 | $770,000 | $1,540,000 | Average |
| Rhode Island | $308 | $770,000 | $1,540,000 | Average |
| Minnesota | $314 | $785,000 | $1,570,000 | Average |
| Nevada | $314 | $785,000 | $1,570,000 | Average |
| Colorado | $319 | $797,500 | $1,595,000 | Average |
| Illinois | $319 | $797,500 | $1,595,000 | Average |
| Maryland | $331 | $827,500 | $1,655,000 | High |
| Oregon | $336 | $840,000 | $1,680,000 | High |
| Washington | $348 | $870,000 | $1,740,000 | High |
| New Jersey | $353 | $882,500 | $1,765,000 | High |
| Connecticut | $356 | $890,000 | $1,780,000 | High |
| Massachusetts | $365 | $912,500 | $1,825,000 | High |
| Washington DC | $365 | $912,500 | $1,825,000 | High |
| New York | $376 | $940,000 | $1,880,000 | High |
| Alaska | $385 | $962,500 | $1,925,000 | High |
| California | $385 | $962,500 | $1,925,000 | High |
| Hawaii | $393 | $982,500 | $1,965,000 | High |
* Costs based on BuildGenius 2026 regional pricing database. Actual costs vary by specific location, project complexity, and market conditions.
Hotel Cost Breakdown — Where Does the Money Go?
Guest Room Buildout
35%Room finishes, bathrooms, millwork, furniture (FF&E), and technology packages. Budget hotels: $60K/room. Luxury: $200K+/room.
Public Areas & Amenities
20%Lobby, restaurant, bar, meeting rooms, pool, fitness center, and spa. Amenity costs vary dramatically by hotel class.
MEP Systems
22%Individual room HVAC (PTAC or fan coil units), plumbing for every bathroom, electrical distribution, and fire/life safety systems.
Structure & Envelope
15%Multi-story structural frame, exterior cladding, windows, and roofing. Hotels typically require 4–8 story construction.
Permits & Soft Costs
8%Brand compliance reviews, impact fees (often $2K–$5K per room), architectural and engineering fees, and franchise fees.
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Try BuildGenius Free →Hotel Construction — Frequently Asked Questions
How much does it cost to build a hotel per room?▼
Budget/select-service hotels: $80,000–$120,000 per room. Mid-scale full-service: $150,000–$200,000. Luxury/resort: $250,000–$500,000+. These figures include FF&E but exclude land.
How long does it take to build a hotel?▼
Select-service hotels (100–150 rooms): 12–18 months. Full-service hotels: 18–24 months. Luxury/resort properties: 24–36 months. Modular construction can reduce timelines by 30%.
What is FF&E in hotel construction?▼
FF&E stands for Furniture, Fixtures & Equipment — everything not permanently attached to the building: beds, desks, chairs, TVs, draperies, artwork, and case goods. FF&E typically runs $15,000–$50,000 per room.
What is the most profitable hotel type to build?▼
Select-service hotels (e.g., Hampton Inn, Fairfield Inn) offer the best ROI with lower construction costs ($80K–$110K/room), lower operating costs (no full restaurant), and strong brand demand.
What hotel brand has the lowest construction cost?▼
Economy brands like Microtel, Super 8, and Red Roof Inn have the lowest per-room construction costs at $60,000–$85,000. However, revenue per room is also proportionally lower.
Do hotels need sprinkler systems?▼
Yes. IBC and NFPA 101 require automatic sprinkler systems in all new hotel construction regardless of size. Hotel sprinkler systems cost $3–$8 per sq ft installed.
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