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How much does it cost to build a 5-star hotel?

How much does it cost to build a 5-star hotel?

Five-star hotels are more expensive as they are at the top of the world for luxury and comfort in the hospitality industry. With exceptional service, first-class facilities and meticulous attention to detail, these establishments are a discerning traveller’s dream. However, behind the imposing façade and impeccable services lies a complex and costly construction process. How […]

Five-star hotels are more expensive as they are at the top of the world for luxury and comfort in the hospitality industry. With exceptional service, first-class facilities and meticulous attention to detail, these establishments are a discerning traveller’s dream.

However, behind the imposing façade and impeccable services lies a complex and costly construction process. How much does it really cost to build a five-star hotel? This question is the subject of a detailed analysis, covering various aspects, from the location and size of the hotel to the quality of the materials and the level of personalisation.

 

Factors to take into account in construction

Here at IHCS we are going to detail the main factors that intervene in the cost of construction:

 

Location and size

The cost of building a five-star hotel varies significantly depending on the geographic location and size of the project. In affluent urban areas and renowned tourist destinations, construction costs tend to be higher due to the demand for skilled labour and competition for resources.

On the other hand, in more remote or less developed locations, costs are lower, but the quality of facilities must still be maintained to meet five-star standards.

The size of the hotel also influences costs. The more rooms and services the establishment has, the higher the investment required. Five-star boutique hotels, with a limited number of rooms and a focus on exclusivity, have a higher construction cost per room compared to larger, more conventional chain hotels.

To give you an idea, in Spain, building a 5-star hotel costs around 260,000 euros per room, twice as much as a 4-star hotel where the cost is around 140,000 euros.

 

Styling and Finishing

Design and architecture are crucial elements in the construction of a five-star hotel. These establishments are set apart from the rest by their elegance and sophistication, which requires a meticulous approach to every architectural detail.

From the façade of the building to the layout of the rooms and common areas, every aspect must be precisely designed to create a unique and unrepeatable luxury experience.

These costs vary according to the reputation and experience of the professionals hired. Renowned architects such as Frank Gehry will charge a higher fee, but their experience adds significant value to the project.

Do you want the architect of the Guggenheim in Bilbao to do a hotel for you? Well, he has already done it, as in the case of the Hotel Marqués de Riscal, but you will pay more for it.

The quality of the materials and finishes is another determining factor in the final price. From the foundations to the finishing touches, every element is expected to reflect a standard of excellence. This includes the selection of durable, high-quality materials such as marble, hardwood, stainless steel and luxurious textiles.

Custom finishes, such as bespoke joinery, original artwork and exclusive furnishings, also contribute to the final cost of the project. These details are essential to create a unique atmosphere and distinguish your hotel from its competitors.

 

Cost overrun of extra services in a 5-star hotel

When it comes to building a five-star hotel, additional services are an integral part of the luxury experience offered to guests. However, these extra services not only add value to the establishment, but also generate significant cost overruns during the construction process.

It will not be the same cost for a 5-star hotel that has a spa, a casino or a golf course within its facilities. And if, in addition to these extras, touches of distinction are added, such as a golf course designed by a famous golfer.

This is the case of the Riviera Maya Country Club, a course designed by the Spanish golfer Sergio Garcia.

In addition to the services mentioned above, five-star hotels offer a variety of additional services, such as transportation, excursions, luxury laundry, and conference and event services. The inclusion of these services increases construction costs, either through the creation of specialised facilities for such services.

You see how building a five-star hotel is a complex and costly process involving a variety of factors to consider. However, this investment is highly profitable, as these establishments generate significant revenue and set standards of excellence in the hotel industry.

Do you want to know why a 5 star hotel is so profitable? Contact IHCS and we will tell you. You will be surprised by the high revenue of these hotel establishments.

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