Hotel guests are expecting more from their stay than ever before. With competition at an all-time high, hotels must offer stylish rooms, welcoming social spaces and a warm environment. Hotels of all shapes and sizes plan refurbishments before things start to look too tired, and bookings begin to take a hit.
When planning a hotel refurbishment, one of the biggest questions is how much it will cost. Hotel refurbishment costs can seem like a constantly moving scale, but with the right partner, good planning and a clear understanding of the main cost drivers, it becomes easier to set a realistic budget.
Cost drivers for hotel refurbishment
No two hotel refurbishment projects are the same. Each will have different needs and unearth surprises mid-way through, so it is impossible to give a single price that fits every project. However, several factors influence the cost, and understanding them can help you better plan your budget.
The main cost drivers for hotel refurbishments are:
- Scope of work: is it a full fit-out or a light refresh?
- Age and condition of the building
- Size of building, i.e. number of rooms, communal spaces, etc
- Compliance requirements
- Sustainability upgrades, such as LED lighting or solar power
- Location
- Labour availability
For example, a small boutique hotel that is five years old may require far less investment than a large city centre hotel in an old building with ageing infrastructure. Additionally, a hotel refurbishment that prioritises sustainability may cost more upfront, but can save energy costs long-term.
Hotel refurbishment costs you should plan for
Understanding the scope of work can help you get a clearer idea of the budget you’ll need. The different types of hotel refurbishment can be categorised in the following ways:
- Light refresh: Cosmetic updates such as new paint, carpets and soft furnishings
Mid-scale refurbishment: New bathrooms, upgraded case goods, flooring and lighting - Full refurbishment: Structural changes, MEP upgrades and full furniture packages
Light refreshes tend to be the most budget-friendly, as no major infrastructure work is needed. Mid-scale hotel refurbishments tend to require a bigger investment, while full refurbishments involve deeper work and therefore bigger budgets.
Avoid the hidden costs of hotel refurbishments
As with any renovation or refurbishment project, something will always come up that you didn’t budget for. While planning is key, it cannot see the unknown, which is why it’s vital to include a contingency in your budget. Common examples of hidden costs include:
- Structural issues you only discover once walls or floors are knocked down
- Outdated wiring or plumbing that needs replacing
- Extra fire safety or accessibility upgrades to meet current regulations
- Storage and transport for the furniture you need to remove
- Additional design fees if the brief changes midway
- Lost revenue from temporary closures or reduced occupancy
Are you looking for a hotel refurbishment partner?
If you’re considering a hotel refurbishment and want to explore how much your hotel refurbishment will cost, get in touch to discuss your requirements. At IH Group, we are your trusted refurbishment partner, here to guide you at every stage of your project.
