How much does it cost to build or convert a hotel?
Use development-cost surveys as preliminary cross-checks, not as proof of replacement value. HVS’s survey published July 13, 2026 uses budgets for projects proposed or under construction during calendar 2025.
| HVS development category | Median development cost per room |
|---|---|
| Select-service | Approximately $200,000 |
| Full-service | Approximately $467,000 |
| Luxury | More than $1.6 million |
These are broad development categories, not boutique-only benchmarks or contractor quotations for a particular building. HVS includes ground-up and conversion projects and cautions that changing project composition affects the results. (hvs.com)
Buyer application: Do not declare a hotel cheap because its purchase price falls below one of these medians. Compare the acquisition’s post-renovation, all-in basis with a genuinely comparable alternative project. Obtain a property-specific scope, timing plan and contingency assessment before relying on adaptive reuse or a renovation strategy.
What public labor evidence is useful?
BLS’s accommodation-industry page reported August 2026 preliminary average hourly earnings of $24.92 for all employees, and $22.07 for production and nonsupervisory employees. These national industry measures are not local wage quotations, fully loaded employment costs or a boutique hotel staffing budget. (bls.gov)
A separate June 21, 2026 job advertisement from Ascent Hospitality offered $70,000–$85,000 annually plus bonus for a corporate revenue manager overseeing a portfolio. This is one advertised position—not a market salary survey or a property-level management fee. Its practical value is prompting an operator to explain how shared commercial resources are staffed and charged. (hcareers.com)
For acquisition diligence, replace generic payroll assumptions with a role-by-role roster, actual hours, vacancies, overtime, benefits, contract labor and proposed shared-service charges.