Building a hotel is perhaps the most expensive part of opening your own lodging business. If building a house or an apartment is expensive, constructing a hotel complex—regardless of the number of beds—will undoubtedly be many times more expensive.
One of the countries currently experiencing the strongest growth in tourism is Colombia. To capitalize on this boom, many entrepreneurs have set their sights on this coffee-growing country to build hotels, but how much does it cost to build a hotel in Colombia? What budget should I allocate for the project?
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Factors You Should Consider
To estimate the costs of building a hotel in Colombia, several factors must be taken into account, such as:
Hotel Type
According to experts, building a budget hotel for business travelers is not the same as building a beach resort. Construction requirements, the number of rooms, amenities, and even the size of the parking lot will vary depending on the type of hotel.
It is essential to determine the type of hotel, as this will influence the development of the architectural project. Similarly, the type of hotel will influence the choice of materials and the final finishes of the project, which, in turn, affects the cost of building a hotel.
Size and number of rooms
Another factor that will play a decisive role in determining how much it costs to build a hotel in Colombia is the hotel’s size. Logically, a hotel with just 20 rooms will be much less expensive to build than one with 100, 200, or 500 rooms, for example.
The more rooms you have, the larger the building you’ll need to construct. Similarly, the more rooms there are, the larger your facilities will need to be. The restaurant, parking lot, lobby, etc., will all need to be scaled to match your hotel’s capacity. The same applies to the number of bathrooms, the electrical system, plumbing, furniture, water tanks, etc.
Hotel Amenities
The more amenities a hotel has, the higher its cost will be, since you’ll have to invest in its construction and development. Having a pool, for example, is expensive because you have to build it, maintain it, and install a heating system.
Restaurants, bars, swimming pools, sports courts, gyms, parking lots, etc. All of these amenities involve direct costs for their construction and installation. Even something as simple as Wi-Fi comes at a cost, since the hotel must set up the network of routers.
Location
Location is another factor that is directly related to how much it costs to build a hotel in Colombia. Building a hotel on a mountain—for example, in the coffee-growing region—is not the same as building one on the beach or in the capital, Bogotá.
The cost of building your hotel will depend on the city, the state, its popularity, and the number of travelers. In addition, it is important to take into account the cost of permits and the average price of land, labor, and construction materials.
Materials and Labor
It is important to take into account the materials and labor costs when estimating how much it costs to build a hotel in Colombia. Construction materials range from basic materials such as sand, gravel, steel, and concrete to finishing materials such as flooring, moldings, and decor, among others.
When it comes to labor costs, it’s important to know how much it costs to hire masons, builders, engineers, and architects in Colombia. The easiest way to handle this is through a construction company or a contractor.
Permissions
Finally, it’s important to consider the permits and licenses required to build a hotel in Colombia. That’s right—just like in any other country, you’ll need to obtain government authorization to carry out the construction project and avoid having it shut down due to a lack of permits.
Keep in mind that licenses must be obtained at both the local and federal levels. Also, remember that obtaining them involves costs, as you’ll have to pay for the permits. In addition, you’ll also have to invest time and effort in navigating these bureaucratic processes.
Average Construction Costs in Colombia
We’ll give you an idea of how much it costs to build a hotel in Colombia. To understand this, you should know that the average cost ranges from 15 to 60 million dollars for a small hotel. According to industry data, the cost per room can start at $20,000 for budget hotels and go up to $150,000 for luxury hotels.
Materials alone are estimated to account for 45% of the total construction cost. As for labor, the minimum wage in Colombia is 43,000 Colombian pesos per day.
It’s worth noting that the total construction costs and the costs per room will depend on your project. There are hotels that have even been built for less than the range mentioned above. This is because owning the land or property makes construction much more affordable.
Since we already own a property, there’s no need to build the hotel from scratch. We simply need to renovate, remodel, and adapt it. According to market data, the cost of these renovations to open a hotel can range from $2 million to $30 million, depending on the type of hotel and the property.
We help you accurately estimate your construction costs
If you want to make the most of your budget, it’s essential to have the support of experts. They can help you accurately estimate costs. At IHCS, our expert consultants will help you determine how much it costs to build a hotel in Colombia based on your project.
Through our consulting services, you’ll be able to optimize your budget and reduce construction costs while avoiding cost overruns. This way, your project will turn out exactly as you expected, without having to worry about budget constraints or compromising the quality of your hotel.
Just contact us, and we’ll help you create the most accurate budget for your hotel construction project.
