U.S. hotel construction costs by select city 2018

The city with the highest costs for the construction of a hotel in the United States is Chicago, Illinois, where the average construction cost for a 5-star hotel reached 520 U.S. dollars per square foot. A 3 star hotel in Portland, Oregon, on the other hand, cost an average of 195 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 in 2018, by select city

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Release date

April 2019


United States

Survey time period


Supplementary notes

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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Statistics on "Construction cost of U.S. commercial buildings"

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