The city with the highest costs for the construction of a hotel in the United States is Honolulu, where the average construction cost for a 5-star hotel reached over 692 U.S. dollars per square foot. A 3 star hotel in Phoenix, Arizona, on the other hand, cost an average of 230 U.S. dollars per square foot. The hotel pipeline in the U.S. has experienced a steady growth in comparison to other regions of the world. Luxury and upper-scale hotel projects are at record levels.
Construction costs of hotels
In the construction of a hotel, there are a variety of factors to consider such as room amenities, additional on-site services, and interiors. Labor and construction materials must also be considered and these variables can create a wide range in construction costs. Generally, the cost includes the foundation, roof, windows, exterior and interior walls, bathrooms, and heating and cooling systems, among other factors. Hotel projects tend to use higher quality techniques and materials to minimize the need for repair or replacements.
Average construction costs of hotels in the United States as of 1st quarter 2022, by select city
(in U.S. dollar per square foot)
Figures are Statista calculations, based on low and high building costs in the respective market.
The data in the chart below represents estimates of current building costs in each respective market. Costs may vary as a consequence of factors such as site conditions, climatic conditions, standards of specification, market conditions, etc. Values of U.S. locations represent hard construction costs based on U.S. dollars per square foot of gross floor area.
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Rider Levett Bucknall. (March 31, 2022). Average construction costs of hotels in the United States as of 1st quarter 2022, by select city (in U.S. dollar per square foot) [Graph]. In Statista. Retrieved May 29, 2022, from https://www.statista.com/statistics/830378/construction-costs-of-hotels-in-us-cities/
Rider Levett Bucknall. "Average construction costs of hotels in the United States as of 1st quarter 2022, by select city (in U.S. dollar per square foot)." Chart. March 31, 2022. Statista. Accessed May 29, 2022. https://www.statista.com/statistics/830378/construction-costs-of-hotels-in-us-cities/
Rider Levett Bucknall. (2022). Average construction costs of hotels in the United States as of 1st quarter 2022, by select city (in U.S. dollar per square foot). Statista. Statista Inc.. Accessed: May 29, 2022. https://www.statista.com/statistics/830378/construction-costs-of-hotels-in-us-cities/
Rider Levett Bucknall. "Average Construction Costs of Hotels in The United States as of 1st Quarter 2022, by Select City (in U.S. Dollar per Square Foot)." Statista, Statista Inc., 31 Mar 2022, https://www.statista.com/statistics/830378/construction-costs-of-hotels-in-us-cities/
Rider Levett Bucknall, Average construction costs of hotels in the United States as of 1st quarter 2022, by select city (in U.S. dollar per square foot) Statista, https://www.statista.com/statistics/830378/construction-costs-of-hotels-in-us-cities/ (last visited May 29, 2022)