Hotel construction costs in selected cities in the U.S. Q3 2024

In the third quarter of 2024, the city with the highest costs for the construction of a 5-star hotel in the United States is Honolulu at 768 U.S. dollars per square foot. A 3-star hotel in Phoenix, Arizona, on the other hand, cost on average of 268 U.S. dollars per square foot. The average construction costs of housing in those U.S. cities was similarly distributed.

Construction costs of hotels

In the construction of a hotel, there are a variety of factors to consider such as room amenities, additional on-site services, and interiors. Nevertheless, some of the most important elements that can determine the cost of a building are the salary of workers, the cost of the equipment, and the price of raw materials and appliances. Generally, construction cost figures include the foundation, roof, windows, exterior and interior walls, bathrooms, and heating and cooling systems, among other factors. Hotel projects tend to use higher quality techniques and materials to minimize the need for repair or replacements.

Hotel construction pipeline worldwide

Some of the cities with the most rooms under construction were in China and in the United States. Meanwhile, Cancún was the city leading the hotel construction pipeline in Latin America, with figures that were much higher than those for the rest of the cities included in the ranking. One of the tallest skyscrapers under construction in the U.S. was the Waldorf Astoria Hotel and Residences in Miami.