It is the first question almost every hotel investor asks: 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, an understanding of what that percentage includes and what drives it. Here we explain it, drawing on our experience designing hotels and supervising their construction 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 how the scheme fits the regulations.
- Basic design (proyecto básico): the document submitted to apply for the building permit.
- Construction (execution) project: the drawings and details the hotel is built from.
- Construction supervision: technical supervision of the works right 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.
Fees are 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 rises (economies of scale): a large hotel carries a lower percentage than a small one.
- It rises with complexity: a hotel is far more demanding than a home (tourism regulations, fire protection, accessibility, intensive building services).
- It tends to be higher for renovation or repositioning than for new build, because the existing building has to be diagnosed and its problems resolved.
As a guide, on a hotel project the design and construction supervision together usually come to between 6% and 12% of the construction budget: closer to the lower end for higher-budget works and straightforward projects, and closer to the upper end for small or highly distinctive hotels and complex renovations. It looks like a small share of the investment, yet it is the decision that shapes everything else.
What drives that percentage
- Category and positioning of the hotel: a 3-star city hotel does not demand the same as a 5-star resort.
- New build, renovation or repositioning of an operating hotel.
- Condition of the existing building: this is where good technical due diligence prevents costly surprises.
- Keeping the hotel open: phasing the works makes the design more expensive, but it usually pays off compared with the revenue lost by closing.
- Scope of the commission: whether or not it includes interior design and landscaping.
The costly mistake: choosing on the lowest percentage
The design is precisely the item where it pays least to cut corners, because it determines how much everything else will cost and how much it will earn. A poorly resolved design is paid for in cost overruns, in schedules that slip and in rooms that earn less than they could. A good design, on the other hand, pays for itself: it optimises the number of keys, the efficiency of the building services and the use of the common areas.
How we approach it at Klic Arquitectos
We work with fixed fees from the preliminary design stage – no “subject to final measurements” – and with a fixed construction budget agreed before work starts, so the investor knows the exact figure and can plan the financing. We supervise the works by checking contractors’ valuations against the design: in recent years, the average cost overrun on our projects has stayed below 5%. And we phase renovations to keep closure time to a minimum.
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 the land, permits and municipal charges, furniture, fixtures and equipment (FF&E) or the fees of other consultants.
As a percentage, does the design of a renovation cost more than that of a new build?
Usually, yes. Renovating or repositioning a hotel means diagnosing and resolving what is already there, with more uncertainty and more technical work than starting from scratch.
Does that percentage include construction supervision?
It should always be specified. At Klic we quote fixed fees that cover both design and construction supervision; even so, it is worth checking the scope of any quote you compare.
Can a hotel be renovated without closing it?
Yes, by phasing the works so that part of the hotel keeps operating. It costs a little more in design, but it usually pays off compared with the loss of income from a full closure.
Do you have a hotel project in mind?
At Klic Arquitectos we design hotels and supervise their construction 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 an initial, no-obligation call.
