Hotel Renovation ROI Calculator
See the extra revenue, payback and ROI from renovating rooms, including the revenue lost while rooms are out of order.
How to use the free Hotel Renovation ROI Calculator
- Enter your figures in the fields above – use real numbers from your PMS, channel manager or accounts.
- Tap the button to see the result instantly. Change any value to compare scenarios.
- Copy, print or save the result and use it in your daily or monthly review.
This Hotel Renovation ROI Calculator runs fully in your browser on mobile or desktop – no sign-up and nothing is uploaded. Free hotel renovation ROI calculator. Enter rooms, cost per room, ADR and occupancy uplift and downtime to get extra revenue, payback and ROI per year.
Will the renovation pay for itself?
Tired rooms show up quickly in guest photos and reviews, and over time they pull your rate down. A renovation can lift both ADR and occupancy, but it costs money twice: once for the work, and again for the room nights you cannot sell while rooms are closed. This calculator includes both, so the payback figure is honest.
Extra profit = Extra revenue after commission − Cost of extra occupied nights
Total cost = Rooms × Cost per room + Net revenue lost during downtime
Payback = Total cost ÷ Extra profit per year
Choosing realistic uplift figures
- ADR uplift: look at what similar renovated rooms in your area sell for on OTAs. A modest uplift of 10% to 20% is easier to defend than a big jump.
- Occupancy uplift: better photos and reviews help conversion, but occupancy is also limited by demand in your market. A few percentage points is a sensible starting assumption.
- Downtime: include the full time a room is out of order, from the first wall broken to the final deep clean.
- Life: soft furnishings may last five to seven years; bathrooms and civil work last longer. Use the period before the next refresh.
Ways to improve the return
- Renovate in phases during your low season, so fewer rooms are closed when demand is high.
- Start with the room type that has the largest gap between your rate and competitors' rates.
- Reshoot photos and update OTA listings on the day rooms reopen. The OTA listing score checker shows what else to fix.
- Raise the rate in steps and watch pickup, instead of waiting a season.
Check your before and after RevPAR with the RevPAR calculator, and test the full project with loan costs in the hotel ROI calculator.
Frequently asked questions
How do I calculate ROI on a hotel room renovation?
Estimate the extra yearly profit from higher ADR and occupancy after commission and room costs, then divide it by the total cost including revenue lost during downtime.
What is a good payback period for a hotel renovation?
It depends on the scope, but a payback well within the life of the renovation is a sensible test. If payback is longer than the life, rethink the scope or cost.
Should I include lost revenue during renovation?
Yes. Rooms out of order cannot be sold, and that lost contribution is a real cost of the project. Planning work in the low season keeps it small.
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