Building Costs Per Square Foot for Motel – USA National Average

A Detailed Analysis of Building Small to Medium-Sized Motels in the USA: An In-Depth Look at Costs and Considerations

Holiday Inn Express Scottsdale, Arizona - Three Storey Hotel with 122 rooms, Renovated in 2019 - Price $10,500,000 on Auction

Holiday Inn Express Scottsdale, Arizona – Three Storey Hotel with 122 rooms on Sale, Renovated in 2019 – Price $10,500,000 on Auction

The realm of real estate investment is vast and varied, with each sector offering unique opportunities and challenges. One such sector that has consistently piqued the interest of investors is the motel industry. Offering a perfect blend of affordability and convenience, motels have long catered to travelers across the United States. For those considering an investment in this industry, a clear understanding of the costs associated with constructing a motel is critical. This introduction explores the financial intricacies of building small to medium-sized motels, using data from the USA’s national average.

Constructing a motel involves numerous expenses, each with its own cost per square foot. These costs can vary significantly depending on the number of units and the quality of construction. Our data breaks down these costs in detail, providing insight into the expenses for foundation, framing, windows, roofing, overhang, exterior walls, flooring, interior finish, baths, plumbing, and special features. Each of these categories is further divided into four quality tiers – ‘Best’, ‘Good’, ‘Average’, and ‘Low’ – offering a clear understanding of how material quality can impact the overall cost.

Additional factors to consider include the use of masonry for exterior walls, which can increase costs by 8%, and the decision to build above the first floor, which can add an additional 2% to the total cost. On the other hand, choosing to construct outside metropolitan areas could potentially reduce expenses by 2 to 6%.

For a more tangible grasp of these costs, our data provides a comprehensive overview of the total cost of constructing a motel room, with specific values for motels with 9 units or less, 10 to 24 units, and more than 24 units. Notably, the cost per unit decreases as the number of units increases, highlighting the potential benefits of investing in larger properties.

By providing a detailed overview of the costs associated with motel construction, this introduction aims to equip potential investors with the knowledge necessary to make informed decisions. Whether you’re a seasoned real estate investor or a newcomer to the industry, understanding these costs is crucial to successful investment planning in the motel sector.


Table of Building Costs Per Square Foot for Motel with 9 Units or Less – USA National Average

Quality ClassificationMinimum (USD$/sq ft)Maximum (USD$/sq ft)
1. Best163.61213.50
2. Good139.48181.99
3. Average118.97155.20
4. Low99.71130.22

Note: Add 2% for work above the first floor. Work outside metropolitan areas may cost 2 to 6% less. Add 8% when the exterior walls are masonry. Deduct 2% for area built on a concrete slab.

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