According HVS and their 2009 end-of-year study, the cost per room (when factoring in land costs, site improvements, soft costs and working capital) could be anywhere from $75,000-$400,000, depending on the hotel and location.
What makes a boutique hotel successful?
Boutique hotels prosper when they are tailored to their location. Oftentimes, they’re able to mold their décor and overall aesthetic to the community in which they operate. This not only creates a unique accommodation, but it also creates a destination within a destination.
How much do small hotel owners make?
The profit, or the money you get to take home, is the money that’s made after all the business expenses are paid off. While the industry is pretty tight-lipped about it, it’s estimated that the average profit turned by a hotel chain owner is between $40,000 and $60,000 per year (source).