What’s the Real Cost of Hotel Remodeling Services?

In the competitive hospitality industry, your hotel’s appearance isn’t just part of the guest experience, it is the guest experience. Whether you’re managing a boutique inn in Anaheim or a multi-story franchise property, updating your space is essential to stay relevant. But here's the big question: how much do hotel remodeling services actually cost?

Spoiler alert: it depends on a variety of factors. But before we dive into numbers, it’s worth understanding what goes into hotel remodeling and why a strategic investment now can deliver long-term returns.

Why Hotel Remodeling Is More Than Just a Facelift

A hotel remodel isn’t just about making things look nice. It’s about upgrading functionality, boosting occupancy, improving ratings, and staying competitive in a market where guests often decide where to stay based on photos alone.

According to a CBRE Hotels’ Americas Research report, capital expenditures in the hospitality sector are on the rise as brands invest in modernization and sustainability. Even minor upgrades can lead to improved guest reviews and increased repeat business.

But smart remodeling goes beyond aesthetic improvements. It includes:

• ADA compliance and code upgrades
• Mechanical, electrical, and plumbing updates
• Energy-efficient improvements
• Front desk and lobby reconfiguration
• Guestroom modernization

Each of these elements carries different costs and rewards.

Breaking Down the Cost of Hotel Remodeling Services

Let’s take a closer look at what you can expect when budgeting for hotel remodeling services:

• Per Room Costs
For guestroom renovations, the industry average ranges from $10,000 to $40,000 per room, depending on the property class. Economy hotels tend to remodel for less, while luxury properties can spend significantly more on finishes and custom furnishings. A Hospitality Net report notes that upscale hotel renovations often reach $20,000 per room or higher due to added tech and design upgrades.
• Public Spaces
Remodeling lobbies, restaurants, and other public areas can run from $150 to $400 per square foot, depending on layout complexity and brand standards. Spaces like spas or lounges may require higher-end finishes or specialized HVAC systems.
• Back-of-House and Infrastructure
Mechanical upgrades (plumbing, fire safety, HVAC) can represent 15-25% of total renovation costs. These improvements might not be visible, but they significantly impact operational efficiency and safety.
• Permits and Professional Fees
Expect to allocate 10-15% of your budget to design, architectural, engineering, and permit-related services. For hotels in areas like Anaheim, where code compliance is strict, having a general contractor familiar with local regulations is invaluable.

What Factors Impact Hotel Remodeling Costs?

• Hotel Size and Star Rating
A 3-star roadside inn and a 5-star resort have vastly different remodeling standards. Luxury brands require higher-grade materials, design consultants, and brand-specific architectural elements.
• Occupancy During Renovation
Keeping your hotel open during remodeling adds labor and logistical costs due to phased construction and noise mitigation requirements.
• Scope of Work
Are you doing a soft renovation (fabrics, paint, lighting) or a full gut renovation (walls, plumbing, systems)? The latter could double or triple your costs.
• Local Market and Labor Costs
Construction costs in California, and Anaheim specifically, can be higher than the national average due to labor demand, permit wait times, and union requirements.

Is Hotel Remodeling Worth the Investment?

Absolutely. Guests are more likely to leave positive reviews and return when a hotel looks modern, clean, and aligned with current expectations. In fact, a study by Cornell University found that hotel renovations can lead to an average daily rate (ADR) increase of up to 10%.

Moreover, renovations can improve energy efficiency, reduce maintenance costs, and help meet brand standards especially important for franchised properties aiming to avoid penalties or rebranding costs.

Why Choose Parkwest for Hotel Remodeling Services?

At Parkwest General Contractors, we specialize in hotel remodeling services that enhance guest experience without disrupting daily operations. Our team understands the nuances of hospitality construction from ADA compliance to franchise brand requirements, and we manage every phase of the process with precision.

Whether you're planning a full-scale renovation or a phased remodel, our experience with hotel businesses in Anaheim and across Southern California makes us the ideal partner.

Contact us today or call us directly at 714-632-8001 to get the right assistance.

Final Thoughts: Budget Wisely, Remodel Strategically

While the price tag for hotel remodeling services can vary significantly, the long-term benefits from increased occupancy to higher guest satisfaction make it a strategic investment. The key is working with a contractor who understands your goals, brand requirements, and budgetary boundaries.

Whether you're upgrading a boutique hotel or rebranding a franchise property, the right remodeling partner can help you get there on time, on budget, and on brand.

FAQs About Hotel Remodeling Services

Q1: How long does a typical hotel remodel take from start to finish?

Major renovations take 6–12 months; minor updates, 1–3 months, depending on scope and scale.

Q2: Can I remodel in phases to avoid shutting down my entire hotel?

Yes, phased remodeling keeps most areas open, minimizing revenue loss and guest disruption.

Q3: What permits or approvals do I need for hotel renovations in Anaheim?

Most changes need permits; cosmetic work may not. Consult Anaheim’s Planning & Building Department for specifics.

Q4: Are there tax benefits or incentives available for hotel renovations?

Yes, tax credits and deductions exist for energy-efficient upgrades and qualifying hotel renovation projects.