U.S. hotel construction costs by select city 2019

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 530 U.S. dollars per square foot. A 3 star hotel in Portland, Oregon, on the other hand, cost an average of 270 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.