Hotel Renovation Budget as per Room and Categories-A Practical Guide for Hotel Owners & Investors

Hotel renovation is a strategic investment that helps improve guest experience, increase room rates, boost online ratings, and extend the life of a hotel asset. However, without proper planning, renovation projects can easily exceed budgets and timelines.

This post explains hotel renovation budgets as per room count and hotel categories, helping owners plan renovations realistically and profitably.

Why Hotel Renovation Is Important

• Enhances guest comfort and safety

• Improves online reviews and brand image

• Supports higher ADR and occupancy

• Meets changing guest expectations

• Ensures compliance with current standards

Renovation is not an expense—it is an investment.

Key Factors Affecting Hotel Renovation Budget

Before finalizing a renovation budget, consider:

• Hotel category and positioning

• Age of the property

• Scope of renovation (soft vs. hard)

• Room size and inventory

• Quality of materials and finishes

• MEP, fire, and safety upgrades

• Local compliance requirements

Types of Hotel Renovation

1. Soft Renovation

• Painting, wallpaper, lighting

• Furniture polishing or replacement

• Soft furnishings (curtains, mattresses)

• Bathroom fixture upgrades

Lower cost, faster execution

2. Hard Renovation

• Flooring replacement

• Bathroom plumbing and tiles

• Electrical rewiring

• Structural modifications

Higher cost, long-term impact

Hotel Renovation Budget by Category (Per Room)

1. Budget Hotel (1–2 Star)

Scope:

• Basic interiors and furnishings

• Bathroom fixture replacement

• Lighting and painting

Approximate Budget per Room:₹2.5 – ₹5 lakhs

Ideal Renovation Cycle: Every 5–6 years

2. Mid-Scale Hotel (3 Star)

Scope:

• Furniture replacement

• Bathroom upgrades

• Flooring and lighting

• Smart TV and amenities

Approximate Budget per Room:₹5 – ₹8 lakhs

Ideal Renovation Cycle: Every 4–5 years

3. Upper Mid-Scale / Boutique Hotel (4 Star)

Scope:

• Designer interiors

• Premium furniture and fixtures

• Bathroom redesign

• Acoustic and lighting upgrades

Approximate Budget per Room:₹8 – ₹12 lakhs

Ideal Renovation Cycle: Every 4 years

4. Luxury Hotel / Resort (5 Star)

Scope:

• Luxury furnishings

• Bathroom redesign with premium fittings

• Automation and smart room technology

• High-end finishes

Approximate Budget per Room:₹12 – ₹25+ lakhs

Ideal Renovation Cycle: Every 3–4 years

Renovation Budget by Number of Rooms (Indicative)

Rooms	Budget Hotel	Mid-Scale	Luxury
20 Rooms	₹50L – ₹1Cr	₹1Cr – ₹1.6Cr	₹2.5Cr+
40 Rooms	₹1Cr – ₹2Cr	₹2Cr – ₹3.2Cr	₹5Cr+
80 Rooms	₹2Cr – ₹4Cr	₹4Cr – ₹6.5Cr	₹10Cr+

Common Area Renovation Budget (Indicative)

• Lobby & Reception: ₹10–50 lakhs

• Restaurant & Kitchen: ₹20–80 lakhs

• Banquet / Conference Hall: ₹15–70 lakhs

• Exterior & Façade: ₹10–40 lakhs

Hidden Costs to Watch During Renovation

• Temporary room closures (loss of revenue)

• Electrical and plumbing surprises

• Fire & safety upgrades

• GST and compliance costs

• Design changes during execution

Tips to Control Hotel Renovation Costs

• Conduct a professional technical audit

• Phase-wise renovation planning

• Vendor comparison and rate benchmarking

• Standardized specifications

• Clear BOQ and timeline control

Role of Professional Hotel Consultants in Renovation

Professional consultants help in:

• Budget estimation and planning

• Vendor finalization

• Quality and cost control

• Minimizing operational disruption

• Faster ROI post-renovation

Why Choose County Park Suites for Hotel Renovation?

County Park Suites provides:

• Category-wise renovation budgeting

• Technical and cost audits

• Design and vendor coordination

• SOP and operational upgrades

• Complete hotel management solutions

Smart Renovation Builds Profitable Hotels

Hotel renovation done with the right budget and strategy leads to higher guest satisfaction, improved revenue, and stronger brand value. Planning renovation category-wise ensures better cost control and faster returns.

Planning a Hotel Renovation?

Partner with County Park Suites for Expert Guidance

📞 Renovate smart. Control costs. Increase returns.