How much will it cost to build a 5 star hotel?

Jan Steen

Loves to visit remarkable luxury hotels

Have a look at Schloss Lieser. This 5 star hotel in Germany costed around 20 million EUR. It's located directly along the Moselle in the middle of Europe’a most best wine regions.

It's a old castle renovated into a 5 star hotel. It is being said that it will open very soon (July 2017).

It's a luxurious place. The hotel counts more then 50 rooms and most of them are suites. Full swing wellness facility, modern internet facilities, underground parking and more. They renovated it in such a way that the aunthenticy was preserved. At the same it uses a highly sophisticated energy management system to reduces building costs while it giving any comfort.

It seems to be the perfect place for a wedding or business convention. It has several meeting rooms and a separate huge villa connected to the hotel so that you can go on all night celebrating without disturbing any hotel guests or those that want go to bed early. The even have their own chapel in the hotel in case Las Vegas is too far away :)

It close too Luxembourg, Koblenz, Trier and Frankfurt and if you have your own helicopter you can land next to the hotel. I hope it opens soon. More info: 

Back to question. The costs of opening a 5 start hotel depends on a few factors:

Location. Acquiring property in a city costs a lot.Renovate or build from scratch. Renovating an old castle or building often costs a lot more then building a new building from scratch.Energy investments. If you want to lower energy costs you will often need to invest a lot more in the beginning.Design. Many 5 star hotels all look the same. This reduces designing and material can costs. When renovating a building into a 5 star boutique hotel each room often has it own design.Quality of the facilities. You can build a normal kitchen but what is you also what to serve quality products.

Ananya Bajaj

Travelling is my obsession.

By and large, this question can answered by applying basic thumb rule which is -

The facilities needs to be provided to get classified as 5 star hotels depends onRoom & bathroom size of the type of hotel.Rooms facilities & services provided.Activities needed like swimming pool, Shops, Indoor & Outdoor games, recreation centre, Spa, Saloon, beauty parlour, etcVehicles for the guest use as per the location and category of the hotelFurnitures, fixtures and fitting in the public areas.Food & Beverage facilities to accommodate approximate 2 person per room multiplied by total numbers of rooms. (100 rms X 2 = 200 pax)Minimum F&B Outlets to have - Coffee Shop, Continental Restaurant, Buffet Restaurant, Local Ethnic Restaurant, Speciality Restaurant, Lobby Bar, Pool Bar, Room Service, Conference Hall, Board Room.Kitchen needs to be designed and equipped as per the above F&B Outlets.Restaurants needs to be laid out as per the theme

If the location encourages the local to use the F&B and Banqueting facilitiesPlant and Machinery needed to operate such facilities & services.IT requirements ie. PMS, computers and accessories.Procurement of various licences, NOCs, AMCs, Insurances etc to run the hotel operations.More vertical the structure goes / planned, after every certain level or floors the cost of construction increasesHorizontal spread out structure land cost is high and construction cost is marginally high

The thumb rule suggests, the facilities and the services offered are directly proportionately to the class of the hotel and number of rooms in the hotel. So the Total Cost of Construction can be divided by the number of rooms.

Hence on an average per room for a 5 star Hotel could cost anywhere in between INR 75 Lakhs to 1 Crore for a minimum of 200 rooms. Plus the passion and richness you wish to add into the project.



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Dick Karp

studied at Stanford University

I would guess it varies hugely based on location. Not just the cost of the land, but also how easy or hard it is to do construction in the location. So it is probably very hard to generalize to get a useful answer.


How much will it cost to build a 5 star hotel? How much will it cost to build a 5 star hotel? Reviewed by Chekwube Ofunne on February 25, 2018 Rating: 5

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