It is the first question of almost every hotel investor: how much does the architectural design of a hotel cost? The honest answer is not a figure in euros but a percentage of the construction budget. And, above all, understanding what that percentage includes and what drives it. We explain it from our experience designing and supervising hotels in Málaga and on the Costa del Sol.
What “the design” of a hotel includes
It is not a single document but four linked pieces of work:
- Concept and feasibility study: defines the operating model, the number of rooms and the regulatory fit.
- Basic design: the document used to apply for the permit.
- Detailed design: the drawings and details used to build.
- Construction supervision: the technical supervision through to opening.
When you compare quotes from two practices, make sure both include all four stages: many differences in price are, in fact, differences in scope.
The fee is calculated as a percentage of the construction budget
In architecture, fees are usually expressed as a percentage of the construction budget (PEM, the material execution budget), not as a fixed amount. That percentage behaves as follows:
- It falls as the construction budget grows (economy of scale): a large hotel has a lower percentage than a small one.
- It rises with complexity: a hotel is far more demanding than a house (tourism regulations, fire protection, accessibility, intensive services).
- It tends to be higher for refurbishment or repositioning than for new build, because what already exists has to be diagnosed and resolved.
As a guide, in a hotel project the design and construction supervision together usually fall between 6% and 12% of the construction budget: closer to the lower end for larger-budget works and straightforward projects, and closer to the upper end for small, highly singular hotels or complex refurbishments. It looks like a small part of the investment; yet it is the decision that shapes everything else.
What drives that percentage
- Category and positioning of the hotel: an urban 3-star does not demand the same as a 5-star resort.
- New build, refurbishment or repositioning of an operating hotel.
- Condition of the existing building: here a good technical due diligence avoids expensive surprises.
- Keeping the hotel in operation: planning the works in phases makes the design more expensive, but usually pays off against the lost revenue of closing.
- Scope of the commission: whether or not it includes interior design and landscaping.
The expensive mistake: choosing by the lowest percentage
The design is precisely the item where it is least worth saving, because it determines how much everything else will cost and how much it will yield. A poorly resolved design is paid for in cost overruns, in deadlines that stretch and in rooms that perform below their potential. A good design, on the contrary, pays for itself: it optimises the number of keys, the efficiency of the services and the use of the communal areas.
How we approach it at Klic Arquitectos
We work with fixed fees from the preliminary design — no “subject to final measurements” — and with a closed construction budget before starting, so that the investor knows the exact figure and can plan the financing. We supervise the works by checking the certificates against the design: in recent years, the average cost overrun on our projects has stayed below 5%. And we plan refurbishments in phases to minimise closure time.
Frequently asked questions
Is the percentage applied to the construction budget or to the total investment?
To the construction budget (PEM). It does not include land, permits and fees, furniture and equipment (FF&E) or the fees of other consultants.
Is the design of a refurbishment more expensive, as a percentage, than a new build?
Usually yes. Refurbishing or repositioning a hotel means diagnosing and resolving what already exists, with more uncertainty and more technical work than starting from scratch.
Does that percentage include construction supervision?
It must always be specified. At Klic we give fixed fees that include design and construction supervision; even so, it is worth checking the scope in any quote you compare.
Can a hotel be refurbished without closing it?
Yes, by planning the works in phases so that part of the hotel keeps operating. It costs somewhat more in design, but usually proves profitable compared with the loss of income from a full closure.
Do you have a hotel project in mind?
At Klic Arquitectos we design and supervise hotels in Málaga and on the Costa del Sol, with fixed fees and direct contact with the partners at every stage. Tell us about it in a first, no-obligation call.
