What is the average cost to furnish a hotel room?

15 Apr.,2024

 

How Much Does It Cost to Furnish A Hotel Room

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Dec 15, 2023

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When you are creating a comfortable and inviting space for guests, the hotel room furnishing plays a critical role. Do you know why? The reason is that the ambiance and aesthetics of a hotel room significantly impact the overall guest experience and satisfaction. However, the cost of furnishing a hotel room can vary widely, depending on several factors like hotel category, room size, location, brand standards, and the level of hotel. In the following article, we will delve into the various aspects of furnishing a hotel room, exploring the key components, estimated costs, and factors that influence the final expenditure.

The Essential Components of Hotel Room Furnishing

Before delving into the costs, it is essential to understand the fundamental elements that constitute hotel room furnishing. The key components typically include as follows,

a. Furniture: Furniture is the backbone of any hotel room. It includes headboard, bedbase, bedside tables, wardrobe, desk, chair, and other necessary fixtures. The quality of furniture significantly influences both guest comfort and the overall durability of the room.

b. Bedding and Linens: It provides guests with comfortable and clean bedding,which will crucial for their restful stay. The bedding and linens are contains mattress, pillows, bedspread, duvet, sheets, and towels.

c. Lighting Fixtures: Making a Proper lighting is a vital case in setting the mood and enhancing the room’s aesthetics. Besides the overhead lighting, desk lighting and bedside lamps are essential for guest convenience.

d. Decorative Elements: Lots of Decorative items can enhance the feeling of a hotel room, such as artwork, curtains, rugs, and decorative pillows. It adds a touch of elegance and personality to the room.

d. Electronics and Appliances: This part is depending on the hotel level, guests may expect amenities like televisions, mini-fridges, coffee makers, kettle and safes.

Estimating the Cost of Hotel Room Furnishing

a. Budget

The cost of furnishing a hotel room is heavily influenced by the segment the hotel falls into, which can be budget, mid-range, or luxury. Budget hotels typically focus on cost-effectiveness, opting for simpler and more affordable furnishings. On the other hand, luxury hotels prioritize high-quality materials and premium brands, resulting in a higher cost per room.

b. Size of the Room

Naturally, a larger room will require more furnishings, resulting in higher expenses. It is very important for hotel owners to strike a balance between maximizing space utilization and guest comfort.

c. Furniture Quality and Material

The quality and material of the furniture significantly impact the cost. Plywood furniture tends to be more expensive than MDF or Particle Board options. Likewise, luxury fabrics and premium upholstery materials come at a higher price, so the quality is depending on the price, the higher price, the nice quality.

d. Brand Standards and Design

If the hotel belongs to a chain or franchise such as the holiday Inn, Super 8, Motel inn ,ect,. It may need to adhere to specific brand standards and designs. Customizing furnishings to meet these standards can increase costs.

e. Manufacturer and Location

The choice of a hotel furniture manufacturer and their location can influence the cost of furnishing. If the factory is located in Foshan City China, the shipping cost is depanding on the distance. Working with local suppliers may offer cost advantages compared to sourcing from international vendors due to shipping and import costs.

Estimated Costs of Hotel Room Furnishing Segment

a. Budget Segment

For budget hotels, the cost of furnishing for a standard room (20–25 SMQ) can range from $2,000 to $5,000 per room. This estimate includes basic furniture, standard bedding, simple lighting fixtures, and budget-friendly decor.

b. Mid-range Segment

Mid-range hotels typically invest more in guest comfort and aesthetics. The cost of furnishing for a standard room (20–25 SQM) can range from $7,000 to $15,000 per room. This budget allows for better quality furniture, improved bedding, upgraded lighting fixtures, and more attractive decorative elements.

c. Luxury Segment

In luxury hotels like Ritz Carlton, Sheraton, Hillton hotel, the cost of furnishing for a standard room (25–35 SQM) can go beyond $20,000 per room. This considerable expense accounts for top-of-the-line furniture, premium bedding, high-end lighting fixtures, exquisite decor, and advanced electronics.

Factors Influencing Costs

a. Customization and Interior Design

Customization and professional interior design services can significantly impact the cost of furnishing. Custom-made furniture and tailored decor items add a personal touch but may come at a premium.

b. Maintenance and Durability

Investing in durable and low-maintenance furnishings can result in long-term cost savings, and high-quality materials and finishes may have a higher initial cost but can save money on replacements and repairs. The labour cost are very high for a day such as the USA, Janpan, etc,.

c. Bulk Purchases and Negotiation

Hotel owner can furnish multiple rooms at once can receive discounts through mass purchases. If you order 10 pcs for an order, the price will be higher than you ordered 50 pcs for the same product, and aslo negotiate with hotel furniture suppliers can also lead to cost reductions.

Conclusion

Furnishing a hotel room is a complex endeavor with costs varying greatly based on factors such as hotel segment, room size, furniture quality, and design preferences. Budget hotels aim to strike a balance between cost-effectiveness and guest comfort, but luxury hotels aim to spare no expense in creating opulent spaces, as a hoter owner, you need to understand the essential components and estimated costs of hotel room furnishing, which can help you making informed decisions that align with their vision, brand identity, and financial objectives.Additionally, investing in high-quality and guest-centric furnishings can result in enhanced guest satisfaction and ultimately contribute to the success of the hotel in a competitive hospitality industry.

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All hotel projects have a budget. From construction to final installation and inspection every dollar is to be accounted for. When calculating your hotel costs these variables will play a major role:

  • Size/scope
  • Where it sits on the sliding luxury scale
  • Location, location, location
  • Innovation and sustainability

Cushman & Wakefield (a commercial real estate powerhouse) published a formula for how much you can reasonably expect to spend in this study.

To get a rough idea of the total cost of a hotel project of any scale, simply include these factors:  

  • Land
  • Hard costs
  • Soft costs
  • Working capital, pre-opening, and supplies
  • Furniture, Fixtures, & Equipment (FF&E)
  • Development fees

The average hotel per-room cost in 2020 was $147,000 - with FF&E, including hotel furniture, being a key component.

Furniture in Hotel Construction Costs

In 2016, the average FF&E costs per hotel room (by scale) were:

  • $12,000 (or 8%) of the total cost per midscale room
  • $24,000 (or 10%) per upper midscale
  • $21,000 (or 10%) per upscale
  • $38,000 (or 10%) per upper upscale
  • $125,000 (or 7%) per luxury room

Of course, there were outliers. The maximum FF&E portion per upper midscale room was $38,000, while the minimum for an upper upscale room was $22,000.

In most cases, you should expect quality custom hotel furniture to cost about 30% of the FF&E total.

So, expect furniture costs to be:

  • $3-4,000 (or 3%) of the total cost per midscale room
  • $5-6,000 (or 4%) per upper midscale
  • $6-7,000 (or 4%) per upscale
  • $10-11,000 (or 3.6%) per upper upscale
  • $30-40,000 (or 2.4%) per luxury room

 

How to Control Hotel Furniture Costs

Controlling Costs vs. Sacrificing Quality

Consider quality and cost when it comes time to start issuing Purchase Orders (PO’s) to your vendors. Some hotels will elect for their hotel furniture to be made overseas versus domestically as a cost-savings technique.

In most cases, they will “see” an up-front savings with the overseas option. They should also expect and plan for the furniture’s life cycle to be much shorter. That means, likely within 5 years, they’ll be placing another order to replace items that have not withstood the test of time, especially in the high-traffic hospitality environment.

The other option  is to go with an American-made, custom casegoods manufacturer. While spending a little more up front, hoteliers can be assured of the following quality benefits:

  • Shorter lead times
  • Responsive communication
  • Quicker access to replacement parts
  • Reduced risk of defects
  • Greater protection against counterfeits
  • Safer materials & products

What’s more, long-lasting quality means your product should remain in great condition beyond the average 8-year hotel-renovation cycle. That’s a definite win for your ROI.

Material Choices

When it comes to design, you’ll likely choose between a laminate and a wood veneer finish. Wood veneer - a thin layer of genuine hardwood glued to another wood surface - is often prized in upscale establishments for its “richer” look and feel.

Laminate is a less-expensive, man-made product composed of pressed synthetic and natural materials. Years ago, a laminate casegood stood out as fake. But laminate technology has made great strides to feature an array of classy, realistic finishes and colors.

While wood veneer can still be considered an upscale investment, laminate has closed the quality gap while remaining more economical. An experienced hotel furniture casegoods manufacturer can accommodate both.

Learn More about Veneer Vs. Laminate

Download our Veneer Vs. Laminate Consideration Guide for Hospitality Casegoods e-book right now! 

Containing Hotel Construction Costs While Achieving Quality

Real estate prices and other key financial factors dictate the cost of building or renovating anywhere. A hotel construction or redevelopment project should be analyzed per room to know if the investment will pay off.

As a rule, consider that building or remodeling a midscale hotel in Manhattan is likely to cost more than building or remodeling an upscale hotel 75 miles south of Chicago. But guests everywhere appreciate quality furniture that’s:

  • Functional
  • Comfortable
  • Aesthetically pleasing

The right choice will boost the brand’s reputation and bring ROI from new bookings and repeat visits.

Let's talk about how value engineering helps you control your hotel furniture costs.

Schedule a free value engineering consultation with one of our experts today! 

 

Editor's Note: This blog post was originally published December 4, 2017 and was updated on June 24th, 2019 to reflect updated information.

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