Resort & Homestay Construction Cost Calculator

Budgeting a resort or homestay build

Most new resort and homestay projects in India go over budget for the same reasons: common areas larger than planned, furniture and equipment added late, site work in difficult terrain and no contingency. This calculator builds a first budget from the room count and room size, adds common areas, FF&E, site work, services, professional fees and a contingency, and shows the total project cost and cost per key.

Choosing the inputs

• Quality level: selecting budget, mid-range or premium fills in a starting build cost per square foot and FF&E per room. These are rough planning defaults only. Replace them with rates from local contractors as soon as you have them.
• Room size: include the bathroom and balcony if they are built. Cottages and villas are usually larger than city hotel rooms.
• Common areas: lobby, restaurant, kitchen, corridors, staff rooms and stores. A small homestay may need 20 to 30% of room area; a resort with a restaurant, pool deck and banquet will need much more.
• Services: generator, sewage treatment plant, water storage and treatment, transformer and lifts can be a large lump sum, particularly in remote locations.
• Contingency: keep at least 10% for price rises and surprises in the ground.

Costs people forget

• Approvals, architect, structural engineer and project management fees.
• Access road, retaining walls and drainage on sloping land.
• Pre-opening costs: staff hiring and training, marketing, opening stock and working capital.
• GST on construction and equipment, and interest during construction.

Next steps

Once you have a total, test whether the project can pay for itself with the hotel ROI calculator and check what the finished property could be worth with the hotel valuation calculator. For licences and approvals to plan for, see the hotel licence checklist.

Frequently asked questions