HVS’s July 13, 2026 development-cost survey uses budgets from projects proposed or under construction during 2025. Its sample includes both ground-up and conversion hotel projects; the reported overall median of approximately $213,000 per room is affected by product mix. HVS cautions against using the survey to price or value a specific project. (publications.hvs.com)
Desk implication: Do not use that median as a boutique renovation allowance or an adaptive-reuse budget.
Before approving a conversion, request separate workstreams for:
- Lawful use, approvals and heritage constraints.
- Measured layouts, accessibility, egress and life safety.
- Structure, envelope and mechanical, electrical and plumbing systems.
- Furniture, equipment, opening supplies and pre-opening costs.
- Financing carry, operating disruption, contingency and opening liquidity.
These are proposed diligence gates. They are not a determination that any particular building complies or can be converted economically.