A compiled reference of 45 verified statistics on hotel renovation and property improvement plan (PIP) costs. It covers soft goods and full renovation cost per key across six chain scales, what a PIP costs and what the brands charge to write one, the soft goods and case goods cycle, the FF&E reserve lenders and brands require, and what renovation does to RevPAR and NOI. Every figure is drawn from a named public source (the Nehmer and HVS Design cost guide, Marriott, Hilton and IHG franchise disclosure documents, Host Hotels and Pebblebrook SEC filings, HVS and Hotel and Leisure Advisors studies) and independently checked before publishing. The one number everyone repeats, $35,000 to $40,000 per key, is traced to its origin below.
Key statistics
8 highlights from this report
Key statistics
Key takeaways
Renovation cost scales with chain scale far more than with anything else: a luxury room costs nearly seven times an economy room to refresh. The reserve most owners fund covers a fraction of the renovation it is meant to pay for, the brands write the fees and deadlines into their franchise documents but not the cost, and the one number everyone quotes for a PIP is an opinion, not a measurement.
A soft goods room renovation runs $2,261 per key at economy to $21,054 per key at luxury.
A full luxury room renovation adds $24,283 to $32,954 per key on top of soft goods.
The famous $35,000 to $40,000 per key PIP figure traces to one advisor's 2024 remark, not a study.
A 4% reserve is about $1,264 per room a year. The average renovation HVS studied cost $19,937 per room.
IHG can require a capital reserve of up to 5% of gross revenue. Marriott charges $12,000 to write a Courtyard PIP.
Renovated hotels gained 12.5% in RevPAR penetration in the first year after completion.
Hyatt put up $40 million in guarantees to cover disruption on a $550 million to $600 million renovation program.
Building new costs a median $219,000 per room, from $167,000 at limited-service to over $1,057,000 at luxury.
How we built this report
Every figure was compiled in September 2026 from named public sources and verified against the original document before publishing.
- Compiled from primary sources
The Nehmer and HVS Design Hotel Cost Estimating Guide, franchise disclosure documents published by Marriott, Hilton, and IHG, Form 10-K and 8-K filings from Host Hotels and Pebblebrook, HVS's development cost survey and renovation study, and advisory analyses from Hotel and Leisure Advisors, The Plasencia Group, Matthews, and LW Hospitality Advisors.
- Only explicitly stated figures
We include only numbers a named source states directly, and attribute each inline at the point it appears. Where we add two published ranges together, the table says so.
- Disagreements shown, not averaged
Three sources give three renovation cycles. We show all three rather than blending them into a single false number.
- Independent review
Written by one co-founder, reviewed by the other before publishing.
Scope caveat: the per-key cost figures come from the 2021 edition of the Nehmer and HVS Design guide, the most recent edition published as an open PDF; newer editions exist behind a registration form, and the guide's own authors reported a 6.25% increase from 2022 to 2023. The guide's figures are budgeting ranges for model hotels, not bids, and exclude fees, contingency, freight, and tax. PIP figures from advisory articles are estimates and quoted opinion, not audited spend. Confirm any figure against the specific source before relying on it.
The hotel renovation lifecycle, by the numbers
All 45 figures, grouped into six themes plus a short list of claims we could not verify. Each figure names its source and was checked against that source before publishing.
Renovation cost per key by chain scale
The most detailed public, line-item source we found for hotel renovation cost by tier is the Hotel Cost Estimating Guide from Nehmer and HVS Design (hvs.com), built from contractor and purchasing-firm unit prices for six model hotels. According to the 2021 edition, a guestroom soft goods renovation (carpet, wallcovering, window treatments, lighting, seating, artwork, paint) runs $2,261 to $3,277 per guestroom at an economy hotel and $15,329 to $21,054 at a luxury hotel. Going to a full renovation, which adds case goods, headboards, and built-ins, costs another $2,187 to $2,819 per key at economy and another $24,283 to $32,954 at luxury. Bathrooms, corridors, public space, freight, and fees sit on top. The table below lays the six tiers side by side.
Guestroom renovation cost per key, six tiers
Nehmer and HVS Design, Hotel Cost Estimating Guide 2021. Construction and FF&E only.
| Tier (model hotel) | Soft goods | Add for full | Soft + full, combined | Bathroom, full add | Scale |
|---|---|---|---|---|---|
| Economy90 rooms, 3 stories | $2,261 to $3,277 | $2,187 to $2,819 | $4,448 to $6,096 | $3,819 to $5,332 | |
| Extended stay150 rooms, 4 stories | $6,462 to $9,004 | $10,731 to $14,954 | $17,193 to $23,958 | $7,826 to $10,320 | |
| Midscale135 rooms, 5 stories | $5,207 to $7,122 | $4,897 to $6,342 | $10,104 to $13,464 | $7,300 to $9,766 | |
| Upscale304 rooms, 9 stories | $7,239 to $9,912 | $9,223 to $12,125 | $16,462 to $22,037 | $8,116 to $11,438 | |
| Upper upscale192 rooms, 7 stories | $9,182 to $12,551 | $14,296 to $19,811 | $23,478 to $32,362 | $10,201 to $15,489 | |
| Luxury200 rooms, 6 stories | $15,329 to $21,054 | $24,283 to $32,954 | $39,612 to $54,008 | $17,481 to $26,920 |
Soft goods and add-for-full ranges are quoted from the guide's summary sheet. The combined column is our arithmetic (soft goods range plus add-for-full range, low to low and high to high) and is not a figure the guide prints. Bars are scaled to the high end of the luxury combined figure. Excludes corridors, public space, professional fees, contingency, OS&E, attic stock, freight, and sales tax.
Statistic 1
A guestroom soft goods renovation at an economy hotel cost $2,261 to $3,277 per guestroom in the 2021 Nehmer and HVS Design cost guide.
Nehmer and HVS Design, Hotel Cost Estimating Guide (2021)
Statistic 2
Upgrading an economy guestroom from a soft goods to a full renovation added $2,187 to $2,819 per guestroom in 2021.
Nehmer and HVS Design, Hotel Cost Estimating Guide (2021)
Statistic 3
An extended-stay guestroom soft goods renovation cost $6,462 to $9,004 per guestroom, and a full renovation added $10,731 to $14,954 more, in 2021.
Nehmer and HVS Design, Hotel Cost Estimating Guide (2021)
Statistic 4
A midscale guestroom soft goods renovation cost $5,207 to $7,122 per guestroom, and a full renovation added $4,897 to $6,342 more, in 2021.
Nehmer and HVS Design, Hotel Cost Estimating Guide (2021)
Statistic 5
An upscale guestroom soft goods renovation cost $7,239 to $9,912 per guestroom, and a full renovation added $9,223 to $12,125 more, in 2021.
Nehmer and HVS Design, Hotel Cost Estimating Guide (2021)
Statistic 6
An upper-upscale guestroom soft goods renovation cost $9,182 to $12,551 per guestroom, and a full renovation added $14,296 to $19,811 more, in 2021.
Nehmer and HVS Design, Hotel Cost Estimating Guide (2021)
Statistic 7
A luxury guestroom soft goods renovation cost $15,329 to $21,054 per guestroom, and a full renovation added $24,283 to $32,954 more, in 2021.
Nehmer and HVS Design, Hotel Cost Estimating Guide (2021)
Statistic 8
A full guest bathroom renovation added $3,819 to $5,332 per guestroom at an economy hotel and $17,481 to $26,920 per guestroom at a luxury hotel in 2021.
Nehmer and HVS Design, Hotel Cost Estimating Guide (2021)
Statistic 9
The cost guide's figures exclude professional fees, contingency, operating supplies and equipment, attic stock, freight, and sales tax.
Nehmer and HVS Design, Hotel Cost Estimating Guide (2021)
Statistic 10
Freight adds an estimated 10.50% to guestroom FF&E at an economy hotel and 5.00% at a luxury hotel, with warehousing adding 6.50% and 3.00% respectively.
Nehmer and HVS Design, with Audit Logistics, Hotel Cost Estimating Guide (2021)
Statistic 11
Renovation costs in the Nehmer and HVS cost guide rose 6.25% from 2022 to 2023.
Matthews, PIP advisory article (2024)
What this means: The tier, not the scope, decides the bill. An economy operator can do a full room for less than a luxury operator spends on carpet and curtains. For anyone documenting condition, the guide is also a useful map of what a soft goods cycle actually touches: every item on that list is a wear surface a room inspection should be looking at long before the PIP does.
What a PIP costs per key, and where the famous number comes from
Search for PIP cost and one figure comes back everywhere: $35,000 to $40,000 per key. We traced it. According to a 2024 advisory article from Matthews (matthews.com), the number is a remark by Lee Hunter, chief operating officer of Hunter Hotel Advisors, that "PIPs now cost between $35,000 to $40,000 per key for a midmarket property." It is an experienced advisor's estimate, not a survey. The same article carries brand program numbers that mostly sit below it: Holiday Inn Express's Formula Blue 2.2 at $10,000 to $25,000 per room, and Hampton's Forever Young at $20,000 to $30,000 per room for 1990 to 1995 buildings, though Hampton's 1980s buildings can pass $40,000. The only measured figure we found is older: according to HVS's 2014 renovation study (hvs.com), hotels that completed a renovation spent an average of $19,937 per room, within a range of $11,057 to $30,677.
Statistic 12
Lee Hunter of Hunter Hotel Advisors put PIP cost at $35,000 to $40,000 per key for a midmarket property in 2024.
Matthews, PIP advisory article (2024), quoting Hunter Hotel Advisors
Statistic 13
PIP costs in 2024 were more than 30% above pre-COVID levels.
Matthews, PIP advisory article (2024)
Statistic 14
Holiday Inn Express's Formula Blue 2.2 renovation was expected to cost $10,000 to $25,000 per room, or $940,000 to $2,600,000 per hotel, in 2024.
Matthews, PIP advisory article (2024)
Statistic 15
Hampton Inn's Forever Young renovation was expected to cost $20,000 to $30,000 per room for hotels built 1990 to 1995, and more than $40,000 per room for 1980s hotels, with exterior work alone at $1,000,000 to $1,750,000.
Matthews, PIP advisory article (2024)
Statistic 16
Hospitality vendors reported price increases of 90% to 300% on renovation products, with the steepest increases on low-margin items ordered by economy hotels.
Matthews, PIP advisory article (2024)
Statistic 17
Hotels that completed a renovation in HVS's 2014 study spent an average of $19,937 per room, within a range of $11,057 to $30,677.
HVS, renovation and market penetration study (2014)
Statistic 18
Hospitality contractor Amerail Systems puts a full-scale PIP renovation at about $30,000 to $40,000 per key, with the overall range running from a couple thousand dollars to more than $40,000.
Amerail Systems, PIP cost per room article (2026)
Statistic 19
A $500,000 PIP on a 50-room hotel that lifts ADR by $5 and occupancy by 5 points pays back in 5.81 years, before counting the revenue lost during construction.
Matthews, PIP advisory article (2024)
What this means: Cite the $35,000 to $40,000 figure as what it is: one advisor's 2024 estimate for a midmarket hotel. Most of the brand program ranges and the HVS sample land lower, and the spread inside a single brand program ($20,000 versus $40,000 for a Hampton, depending on decade of construction) says the age and condition of the building drive cost more than the flag does. That is exactly the variable a documented condition history lets an owner argue with.
What the brands put in writing
Franchise disclosure documents are the one place a brand states its PIP terms for the public record. According to Marriott's 2026 Courtyard FDD (marriott.com), the brand charges $12,000 to inspect a hotel and write its PIP, and the PIP is good for 12 months. A relicensing PIP that runs late costs the owner 1% of gross room sales for every month of delay plus $10,000 per re-evaluation. The same document budgets $14,900 to $20,600 per guestroom for furniture and fixtures in a new-build Courtyard, then says of conversions and PIPs: "We are not able to give you a meaningful estimate of such costs." According to Hilton's 2026 Hampton FDD (hilton.com), the PIP fee is $10,000. According to IHG's 2025 Holiday Inn Express FDD (ihg.com), the PIP fee is $10,000, each extension or re-inspection can cost up to $5,000, and the brand may require a capital reserve of up to 5% of gross revenue. Our brand standards audit statistics page covers the inspection side of the same documents.
Statistic 20
Marriott charges a $12,000 property improvement plan fee to inspect a Courtyard hotel on conversion, transfer, or relicensing, and the resulting PIP is valid for 12 months.
Marriott International, Courtyard by Marriott franchise disclosure document (2026)
Statistic 21
A Courtyard franchisee that misses a relicensing PIP deadline owes Marriott 1% of gross room sales per month of delay, plus $10,000 for each re-evaluation until the work passes.
Marriott International, Courtyard by Marriott franchise disclosure document (2026)
Statistic 22
Marriott budgets $14,900 to $20,600 per guestroom for furniture and fixtures in a new-build Courtyard, and states it cannot give a meaningful estimate of conversion or PIP costs.
Marriott International, Courtyard by Marriott franchise disclosure document (2026)
Statistic 23
Marriott's Fairfield franchise agreement requires periodic replacement of soft goods FF&E and case goods FF&E and recommends a regularly funded reserve account, without naming a percentage.
Marriott International, Fairfield by Marriott franchise disclosure document (2024)
Statistic 24
Hilton charges a $10,000 PIP fee to prepare a property improvement plan for a Hampton conversion, change of ownership, relicensing, room addition, or renovation project.
Hilton, Hampton by Hilton franchise disclosure document (2026)
Statistic 25
IHG charges a $10,000 fee to inspect a Holiday Inn Express and prepare its PIP, up to $5,000 for each PIP extension or re-inspection, and up to $10,000 if a required soft goods or case goods renovation is late.
IHG, Holiday Inn Express franchise disclosure document (2025)
Statistic 26
IHG can require a Holiday Inn Express owner to fund a capital reserve of up to 5% of gross revenue for renovations and FF&E replacement.
IHG, Holiday Inn Express franchise disclosure document (2025)
Statistic 27
A new-build 104-room Holiday Inn Express costs $12,847,351 to $19,461,100, or $123,532 to $187,126 per guest room, excluding land.
IHG, Holiday Inn Express franchise disclosure document (2025)
What this means: The brands price the paperwork and the penalties precisely, and leave the renovation itself unpriced, because it depends on the condition of the building they are about to inspect. The 1% of room sales per month clause turns a late PIP into a recurring bill, so the owner's leverage lives in the inspection: every item that can be shown as already replaced, already compliant, or in good condition is an item that can be negotiated off the plan. See what a hotel PIP is for how that inspection works.
The renovation cycle and the FF&E reserve
Two numbers govern the lifecycle: how often the brand wants the room redone, and how much revenue is set aside to pay for it. According to HVS's 2014 renovation study (hvs.com), summarizing the ISHC CapEx 2007 study, lenders and investors require reserves for replacement of 4% to 5% of total revenue. HVS then showed the arithmetic: on a 126-room hotel at 72.7% occupancy and a $115 rate, 4% is $159,277 a year, or $1,264 per available room, while the renovations in its sample averaged $19,937 per room. The cycle itself is not written in any franchise document we read. Advisors state it: according to The Plasencia Group (tpghotels.com), brands generally require soft goods every six or seven years and case goods every fourteen years or so; contractor Amerail Systems (amerailsys.com) says 5 to 7 and 10 to 12; capital planner Zepth (zepth.com) says 6 to 7 and 12 to 15. The timeline below shows all three.
The renovation cycle, three sources side by side
Years since last full renovation. Bands show each source's stated replacement window; the black marks are the fixed dates the FDDs do state.
Second soft goods bands are the first window repeated once, shown for orientation only. Amerail also cites a brand conversion or repositioning at 15 to 20 years, off the right edge of this chart. No brand FDD we read states a cycle in years; Marriott's Fairfield FDD says replacement is required "periodically as required by our then-current standards."
Statistic 28
Hotel lenders and investors require reserves for replacement of 4% to 5% of total revenue, per the ISHC CapEx 2007 study as summarized by HVS.
HVS, renovation and market penetration study (2014)
Statistic 29
A 4% reserve on a 126-room hotel running 72.7% occupancy at a $115 rate equals about $159,277 a year, or $1,264 per available room, against an average renovation of $19,937 per room.
HVS, renovation and market penetration study (2014)
Statistic 30
Brands generally require soft goods replacement every six or seven years and case goods replacement every fourteen years or so.
The Plasencia Group, PIP advisory article (2023)
Statistic 31
Hospitality contractor Amerail Systems puts soft goods renovations every 5 to 7 years, full hard-goods renovations every 10 to 12 years, and brand conversions every 15 to 20 years.
Amerail Systems, hotel renovation frequency article (2025)
Statistic 32
Capital planning firm Zepth puts soft goods at six to seven years, case goods at twelve to fifteen, and building systems at fifteen to twenty-five years.
Zepth, hotel capex and reserves guide (2026)
Statistic 33
PIPs can arrive as often as every seven years.
Matthews, PIP advisory article (2024)
Statistic 34
Ordering a PIP takes up to a month for the brand to tour the hotel and another four to six weeks for the final report, and deadlines can sometimes be pushed back two to three years on certain items.
The Plasencia Group, PIP advisory article (2023)
Statistic 35
Nehmer and HVS Design's sample full-service renovation schedule allows 6 months for design documents, 16 weeks to order FF&E, 2 months for permitting and bidding, and 5.5 months of construction.
Nehmer and HVS Design, Hotel Cost Estimating Guide (2021)
What this means: Fund 4% for seven years and you have about $8,850 per room by HVS's math, against a $19,937 average renovation. The gap is the reason PIPs get deferred and the reason a sale so often triggers one. The cycle is also a wear clock: a room in year six of a seven-year soft goods cycle looks it, and the inspection record from years one to five is what separates fair wear from damage when the bill arrives.
Displacement, disruption, and what renovation returns
No public source states a per-room displacement cost. What exists are cases and disclosures. According to Hotel and Leisure Advisors (hladvisors.com), a focused-service hotel saw its RevPAR Index hit its lowest point in the year of its $9 million renovation, then recorded NOI about 33% higher in the 12 months after than in the 12 months before. According to HVS's 2014 study of limited-service hotels, the 18 that renovated gained 12.5% in RevPAR penetration in the first year after completion. On the disruption side, according to Host Hotels and Resorts' 2024 Form 10-K (sec.gov), Hyatt agreed to $40 million of operating profit guarantees to offset expected disruption from a six-hotel program costing $550 million to $600 million. Pebblebrook's 2024 earnings release (sec.gov) puts its own repositioning program at $525 million since 2018.
Statistic 36
In Hotel and Leisure Advisors' case study, a focused-service hotel's RevPAR Index hit its lowest point in the year of its $9 million renovation, then its NOI as a share of revenue improved 14.5% from 2014 to 2016.
Hotel and Leisure Advisors, renovation financial impact analysis (2016)
Statistic 37
The same hotel recorded NOI about 33% higher in the 12 months after renovation than in the 12 months before, after 14 years of guest use.
Hotel and Leisure Advisors, renovation financial impact analysis (2016)
Statistic 38
Renovated hotels in HVS's 2014 study gained 11% in RevPAR penetration in the first year after most renovations finished, and 12.5% when each hotel's first post-renovation year was aligned.
HVS, renovation and market penetration study (2014)
Statistic 39
A hotel at 85% RevPAR index before renovation could reach or exceed 100% after a comprehensive renovation, while a hotel already at 110% is unlikely to gain much from soft goods alone.
The Plasencia Group, PIP advisory article (2023)
Statistic 40
Hyatt agreed to $40 million of operating profit guarantees to offset the business disruption from Host Hotels' six-hotel, $550 million to $600 million transformational renovation program, which runs at $125 million to $200 million a year.
Host Hotels and Resorts, Form 10-K for 2024 (2025)
Statistic 41
Host Hotels planned $580 million to $670 million of capital expenditures in 2025, including $240 million to $275 million of renewal and replacement spending.
Host Hotels and Resorts, Form 10-K for 2024 (2025)
Statistic 42
Pebblebrook Hotel Trust reinvested about $525 million to reposition its hotels since 2018, spent $91 million in 2024, and budgeted $65 million to $75 million for 2025 once the program wound down.
Pebblebrook Hotel Trust, fourth quarter 2024 earnings release, SEC Form 8-K exhibit (2025)
What this means: The return shows up as penetration against the comp set, not as a fixed percentage, and the hotel that gains most is the one that had fallen furthest behind. The disruption is real enough that a brand will guarantee tens of millions against it. Both point the same way: the value of a renovation is measured against the hotel's condition before it, which is only knowable if that condition was documented room by room.
Development cost and transaction context
Renovation numbers make more sense next to the cost of building new and the price hotels trade at. According to the HVS U.S. Hotel Development Cost Survey 2025 (hvs.com), the median development cost was $219,000 per room, from $167,000 to $169,000 at limited-service and midscale extended-stay to over $1,057,000 at luxury, with several luxury projects above $2 million per room. According to HOTELS Magazine (hotelsmag.com), LWHA's Evan Weiss put luxury construction costs as much as 45% above pre-COVID levels. On the transaction side, according to LW Hospitality Advisors (lwhospitalityadvisors.com), 356 U.S. hotels sold for more than $10 million in 2024 at an average of $243,000 per room, and the firm names deferred PIPs as one of the forces pushing non-discretionary sellers to market.
Statistic 43
The median U.S. hotel development cost was $219,000 per room in HVS's 2025 survey: $167,000 to $169,000 for limited-service and midscale extended-stay, $223,000 for select-service, $265,000 for upscale extended-stay, $409,000 for full-service, and over $1,057,000 for luxury.
HVS, U.S. Hotel Development Cost Survey (2025)
Statistic 44
Several luxury projects in HVS's 2025 survey had all-in costs above $2 million per room, and LWHA's Evan Weiss said luxury construction costs are as much as 45% higher than before COVID.
HVS, U.S. Hotel Development Cost Survey (2025); HOTELS Magazine, luxury development report (2025)
Statistic 45
LW Hospitality Advisors counted 356 U.S. hotel sales over $10 million in 2024, totaling $14.3 billion and 58,900 rooms at an average of $243,000 per room, with deferred PIPs cited as a reason non-discretionary sellers must exit.
LW Hospitality Advisors, Q4 2024 Major U.S. Hotel Sales Survey (2025)
What this means: A full luxury room renovation at $39,612 to $54,008 per key (our combined figure from the cost guide) is about 4% to 5% of the median luxury build cost; an economy full renovation at $4,448 to $6,096 is about 3% to 4% of a limited-service build. Renovation is cheap relative to replacement and expensive relative to the reserve. That squeeze is why the PIP lands at the closing table.
Claims we could not verify
Four numbers circulate widely enough that a writer will meet them. We looked for the primary source behind each and report what we found rather than reprinting them as facts.
Claim 1
"A hotel PIP costs $35,000 to $40,000 per key." This is a quoted remark by one advisor (Lee Hunter, Hunter Hotel Advisors) in a Matthews article from April 2024, later repeated by contractor and lender blogs. We found no study, survey, or dataset behind it. We print it above as attributed opinion, not as a measured figure.
Traced to Matthews (2024); no primary dataset
Claim 2
"Hotels spent 9% of revenue and $5,147 per available room on capital, per the ISHC CapEx 2023 study." The study is sold by ISHC and not public. The ISHC press release we could read confirms a sample of more than 900 hotels and over 3,100 annual data points but does not print those two figures; the trade coverage that does was inaccessible to us. Not printed as verified.
ISHC press release (2023); study paywalled
Claim 3
"Four percent is not enough." Attributed to the ISHC CapEx 2018 authors in trade reporting we could not access. We use the 4% to 5% lender range from the ISHC 2007 study as summarized by HVS instead, and IHG's own "up to 5%" clause.
Attributed in trade press; original not reachable
Claim 4
"Brands require soft goods every 5 to 7 years and case goods every 12 to 15." No franchise disclosure document we read states a cycle in years. Marriott's Fairfield FDD says replacement is required "periodically as required by our then-current standards." The cycle comes from advisors and contractors, whose ranges span 5 to 7 years for soft goods and 10 to 15 years for case goods.
Advisor and contractor estimates; no brand document
Cite this study
Academic or press use: copy a ready-made reference. RapidEye is the publisher.
Quick FAQ
How much does a hotel renovation cost per key?
A guestroom soft goods renovation ranges from $2,261 to $3,277 per key at an economy hotel to $15,329 to $21,054 per key at a luxury hotel, per the Nehmer and HVS Design Hotel Cost Estimating Guide (2021). Moving to a full renovation adds $2,187 to $2,819 per key at economy and $24,283 to $32,954 per key at luxury. Bathrooms, corridors, public space, freight, fees, and contingency are extra.
How much does a hotel PIP cost per key?
There is no measured industry figure. The widely repeated $35,000 to $40,000 per key for a midmarket hotel is a 2024 remark by Lee Hunter of Hunter Hotel Advisors, quoted by Matthews. Brand program estimates cited in the same piece run $10,000 to $25,000 per room for Holiday Inn Express Formula Blue and $20,000 to $30,000 per room for Hampton Forever Young, exceeding $40,000 for 1980s buildings. Marriott's 2026 Courtyard FDD says it cannot give a meaningful estimate of PIP cost.
How often do hotels renovate?
Advisors and contractors put soft goods replacement every 5 to 7 years and case goods or full renovation every 10 to 15 years. The Plasencia Group says six or seven years for soft goods and about fourteen for case goods. No brand franchise disclosure document states a fixed cycle in years; Marriott's Fairfield FDD requires replacement periodically as required by its then-current standards.
What is the FF&E reserve percentage for hotels?
Hotel lenders and investors require reserves for replacement of 4% to 5% of total revenue, per the ISHC CapEx 2007 study as summarized by HVS (2014). IHG's 2025 Holiday Inn Express FDD lets the brand require a capital reserve of up to 5% of gross revenue. HVS showed a 4% reserve equals about $1,264 per room per year on a 126-room hotel, against an average renovation of $19,937 per room.
How much revenue does a hotel lose during a renovation?
No public source states a per-room displacement figure. Hotel and Leisure Advisors found a focused-service hotel's RevPAR Index hit its lowest point in the year of its $9 million renovation, then NOI rose about 33% in the following 12 months. Host Hotels disclosed that Hyatt agreed to $40 million of operating profit guarantees to offset expected disruption on a $550 million to $600 million six-hotel renovation program.
Data sources
Every figure on this page traces to one of these named public sources, each checked against the original document before publishing.
HVSU.S. hotel development cost survey (2025); renovation and market penetration study (2014)hvs.com
Nehmer and HVS DesignHotel cost estimating guide, renovation cost by tier (2021)hvs.com
Marriott InternationalCourtyard (2026) and Fairfield (2024) franchise disclosure documentsmarriott.com
HiltonHampton by Hilton franchise disclosure document (2026)hilton.com
IHG Hotels and ResortsHoliday Inn Express franchise disclosure document, state franchise filing (2025)ihg.com
Matthews Real Estate Investment ServicesHotel PIP advisory article (2024)matthews.com
The Plasencia GroupPIP negotiation advisory article (2023)tpghotels.com
Hotel and Leisure AdvisorsRenovation financial impact case analysis (2016)hladvisors.com
Host Hotels and ResortsAnnual report on Form 10-K for 2024, via SEC EDGAR (2025)hosthotels.com
Pebblebrook Hotel TrustFourth quarter 2024 earnings release, Form 8-K exhibit via SEC EDGAR (2025)pebblebrookhotels.com
LW Hospitality AdvisorsQ4 2024 major U.S. hotel sales survey (2025)lwhospitalityadvisors.com
HOTELS MagazineLuxury hotel development cost report (2025)hotelsmag.com
Amerail SystemsHotel renovation frequency and PIP cost per room articles (2025, 2026)amerailsys.com
ZepthHotel capex, reserves, and renovation cycle guide (2026)zepth.com