Cost of Hotel Renovation in the USA 2026. Average Per Room & Budget Guide

Renovating a hotel is a strategic investment that can boost property value, elevate guest satisfaction, and ensure competitiveness in the U.S. hospitality market. Understanding the average hotel renovation cost in the USA requires knowledge of key budget factors and clear calculation methods. This guide covers typical per-room and total renovation costs in 2026, what influences them, and how to calculate your renovation budget effectively.

Typical Hotel Renovation Costs in the USA

The cost of hotel renovation varies depending on property size, market, and scope of work:

• Economy & Midscale Hotels: $6,000 - $12,000 per room: covers cosmetic updates, and minor system repairs
• Midscale Full Renovations: $15,000 - $30,000 per room.
• Upscale & Luxury Hotels: $35,000+ per room: includes full structural upgrades, high-end finishes, and advanced technology integration.

Example: Renovating a 75-room midscale property at $25,000 per room results in a $1,875,000 renovation budget.

Key Factors Affecting Hotel Renovation Budget

Several elements influence hotel remodeling expenses:

1. Hotel Segment. Economy hotels focus on cost-effective durability, while luxury projects demand premium finishes.
2. Location & Market. Urban areas (West Coast, Northeast) increase labor and permit costs by 10-25% compared to Midwest or Southern states.
3. Scope of Work. A light refresh costs less than a full gut renovation with plumbing and electrical changes.
4. Compliance & Permitting. ADA upgrades and building code compliance add to the budget but are essential.
5. Material & Labor Costs. Supply chain and labor availability still affect pricing, though more predictable in 2026.
6. Unforeseen Expenses. Always allocate 10-15% contingency for hidden damages or operational disruptions.

How to Calculate Your Hotel Renovation Budget

To estimate your renovation budget, follow these steps:

1. Assess Hotel Size & Segment. Use per-room averages for your property type (economy, midscale, luxury).
2. Define Scope of Work. Cosmetic refresh, full room remodel, or structural renovation.
3. Obtain Line-Item Estimates. Construction, FF&E, labor, permits, compliance costs.
4. Add Contingency Buffer. 10-15% of the total budget for unforeseen changes.
5. Aggregate Total Cost. Multiply per-room estimate by number of rooms to get overall project budget.

Market Context & Trends for 2026

• Occupancy Rates: Stable near 63%
• Average Daily Rate (ADR): ~$160
• Renovation vs. New Builds: Rising construction costs and cautious lending slowed new hotel development, making renovation projects critical for competitiveness and revenue growth.

For more insights into design and innovation, check our article on hotel design trends in the USA for 2026.

Why Accurate Budgeting Matters

Proper planning ensures projects finish on time and within financial limits. Benefits of accurate budgeting include:

• Avoiding overruns and delays
• Maximizing ROI and property value
• Enhancing guest satisfaction and loyalty
• Boosting brand status and RevPAR growth

In Summary: Average Hotel Renovation Costs in the USA

• Economy & Midscale Hotels: $6,000-$12,000 per room
• Midscale Full Renovation: $1,800,000-$2,200,000 total for medium-sized properties
• Luxury Hotels: $55,000+ per room with advanced upgrades

Renovation budgets depend on segment, scope, location, and material choices, but careful calculation protects investment and strengthens market positioning.

Partner with Liberty Way Renovation LLC

At Liberty Way Renovation LLC, we specialize in cost-efficient hotel remodeling services and high-quality renovations aligned with brand standards.

Ready to start your hotel room renovation? Contact our team today for a free consultation and get a customized plan tailored to your property.