A survey conducted in 2021 on the cost of hotel development in India indicated that the most significant share of expenditure incurred in the development of budget hotels was attributed to construction, amounting to nearly 48 percent. In comparison, while the cost share of building luxury hotels was slightly smaller, other costs incurred such as for furniture, fixtures, equipment and interest during construction were noticeably larger than the other hotel types.
Distribution of hotel development costs in India in 2021, by market positioning
Characteristic
Total building cost
MEP*
FF&E**
Professional and legal fee
Pre-opening cost
Interest during construction
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Self reported data from hotels across 102 Indian cities
Supplementary notes
*Mechanical, electrical, plumbing
**Furniture, fixtures and equipment
Note: The source stated that for this specific analysis, a subset of
104 hotels comprising 13,322 rooms was looked at, thereby, eliminating entries with insufficient information.
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Hotelivate. (November 19, 2021). Distribution of hotel development costs in India in 2021, by market positioning [Graph]. In Statista. Retrieved August 25, 2024, from https://www.statista.com/statistics/1281271/india-hotel-development-cost-by-market-positioning/
Hotelivate. "Distribution of hotel development costs in India in 2021, by market positioning." Chart. November 19, 2021. Statista. Accessed August 25, 2024. https://www.statista.com/statistics/1281271/india-hotel-development-cost-by-market-positioning/
Hotelivate. (2021). Distribution of hotel development costs in India in 2021, by market positioning. Statista. Statista Inc.. Accessed: August 25, 2024. https://www.statista.com/statistics/1281271/india-hotel-development-cost-by-market-positioning/
Hotelivate. "Distribution of Hotel Development Costs in India in 2021, by Market Positioning." Statista, Statista Inc., 19 Nov 2021, https://www.statista.com/statistics/1281271/india-hotel-development-cost-by-market-positioning/
Hotelivate, Distribution of hotel development costs in India in 2021, by market positioning Statista, https://www.statista.com/statistics/1281271/india-hotel-development-cost-by-market-positioning/ (last visited August 25, 2024)
Distribution of hotel development costs in India in 2021, by market positioning [Graph], Hotelivate, November 19, 2021. [Online]. Available: https://www.statista.com/statistics/1281271/india-hotel-development-cost-by-market-positioning/
