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How much does it cost per square meter to build a guest room in an economy hotel?

Expert Q&ATony Zhao · Cost ExpertUpdated 2026-06-24
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Tony Zhao
Cost Expert

How much does it cost per square meter to build a guest room in an economy hotel?

I am Tony Zhao, an MEP engineering cost expert. The budget cost of economy hotel guest rooms you mentioned is a key benchmark parameter in project investment decisions and cost control, directly affecting the project's investment payback period and operational profitability. Based on my years of experience participating in chain economy hotel projects (such as Home Inn, Hanting, 7 Days Inn, etc.), this indicator needs to be comprehensively broken down from three dimensions—civil construction, decoration, and MEP—to derive a relatively accurate cost per square meter.

From the cost composition logic of GB 50500 "Code of Bills of Quantities and Valuation for Construction Works," the cost per square meter of economy hotel guest rooms (approximately 25-35㎡ standard rooms) typically includes three major parts: civil structure (including foundation), interior fine decoration, and MEP systems (HVAC, plumbing and drainage, electrical, fire protection, intelligent systems). According to statistics from the China Hotel Association and my project experience, the comprehensive cost per square meter of economy hotel guest rooms (including public area allocation) generally ranges between 2800-3500 RMB/㎡, of which MEP systems account for approximately 25%-30% (i.e., 700-1050 RMB/㎡), decoration accounts for approximately 40%-45%, and civil construction accounts for approximately 25%-30%. This ratio differs significantly from the 35%-45% MEP share of five-star hotels, mainly because economy hotels simplify the air-conditioning system (mostly using split-type air conditioners rather than central air conditioning), weaken intelligent systems (no RCU guest room intelligent control), and lower equipment grade and brand premium.

Specifically, the MEP system cost breaks down as follows:

Actual engineering case: I once participated in an economy hotel project in East China (200 guest rooms, single room area 28㎡, total building area approximately 12,000㎡). The total project investment was approximately 42 million RMB, equivalent to a cost per square meter of 3500 RMB/㎡. Of this, the total MEP cost was approximately 10.5 million RMB (accounting for 25%), equivalent to an MEP cost of approximately 52,500 RMB per guest room. Specific data: air conditioning used Midea split wall-mounted units (1.5 HP), at a cost of 2800 RMB per room, totaling 560,000 RMB; electrical system (including distribution boxes, lighting, sockets, weak current cabling) at approximately 12,000 RMB per room, totaling 2.4 million RMB; plumbing and drainage (including sanitary fixtures and hot water system) at approximately 8,000 RMB per room, totaling 1.6 million RMB; fire protection system (including alarm, sprinklers, fire hydrants) at approximately 5,000 RMB per room, totaling 1 million RMB; intelligent systems (access control, surveillance, network) at approximately 3,000 RMB per room, totaling 600,000 RMB; MEP labor and measure costs of approximately 4.34 million RMB. This case shows that by selecting domestic brands, simplifying system configurations, and standardizing design, the MEP cost of economy hotel guest rooms can be controlled at 50,000-60,000 RMB/room, with a cost per square meter of approximately 1000 RMB/㎡.

Summary: The comprehensive cost per square meter of economy hotel guest rooms is approximately 2800-3500 RMB/㎡, of which MEP systems account for 25%-30% (approximately 700-1050 RMB/㎡). Within the MEP cost, the air-conditioning system's share drops to approximately 25% because split-type rather than central systems are used; the intelligent system's share drops to 5%-8% because there are no high-end configurations such as RCU. It is recommended to carry out limit design at the schematic design stage, allocating the MEP budget in the proportions of HVAC 30%-35%, electrical 25%-30%, plumbing and drainage 15%-20%, fire protection 10%-12%, and intelligent systems 5%-8%, and to give priority to domestic brand equipment (such as Midea air conditioners and Arrow sanitary fixtures) to control costs.

The above are reference opinions. The actual project situation still needs to be further comprehensively evaluated and implemented in combination with specific working conditions, site conditions, and other factors.

Standard reference

GB 50500GB 50016

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