Every hotel construction or renovation project typically follows a tight budget. One of the most significant and often underestimated components is furniture.
Whether you're opening a midscale hotel or an upscale resort, knowing how much to allocate for FF&E (furniture, fixtures & equipment) can help you plan accordingly and avoid budget overruns.
This 2025 guide breaks down hotel furniture costs by room type, tips to control those cots without sacrificing quality, and how to make smart decisions that drive long-term ROI.
Hotel Construction Cost Breakdown: Where Furniture Fits In
According to Cushman & Wakefield and updated industry insights, your total hotel project budget typically includes:
- Land acquisition
- Hard costs (construction, labor, materials)
- Soft costs (architecture, design, permits)
- FF&E
- Working capital
- Pre-opening expenses & supplies (training, marketing, licenses, guest amenities, operating supplies)
- Development fees
On average in 2025, hotel construction costs per room are:
- Midscale: $175,000
- Upper Midscale: $205,000
- Upscale: $225,000
- Upper Upscale: $290,000
- Luxury: $550,000+
Furniture in Hotel Construction Costs
FF&E typically accounts for 7-10% of total construction costs. With that, furniture costs typically make up 30-40% of FF&E.
Here's a simple breakdown of furniture costs per room based on 2025 data:
|
Hotel |
Avg. Cost / Room |
FF&E % |
Est. Furniture Cost |
|
Midscale |
$175,000 |
8% |
$4,200-$5,600 (3%) |
|
Upper Midscale |
$205,000 |
10% |
$6,000-$8,000 (4%) |
|
Upscale |
$225,000 |
10% |
$7,000-$9,000 (4%) |
|
Upper Upscale |
$290,000 |
10% |
$10,000-$12,000 (3.5%) |
|
Luxury |
$550,000 |
7% |
$30,000-$40,000 (2.5%) |
Note that prices fluctuate based on location, material choices, and whether furniture is mass-produced or custom-manufactured.
How to Control Hotel Furniture Costs
When it comes to managing furniture costs, hoteliers often face a choice: spend more up-front for high quality goods or cut costs that may need more frequent repairs or replacement.
Domestic vs. Overseas Manufacturing
In most cases, they will “see” an up-front savings with the overseas option. They should also expect and plan for the furniture’s life cycle to be much shorter. That means, likely within 5 years, they’ll be placing another order to replace items that have not withstood the test of time, especially in the high-traffic hospitality environment.
The other option is to go with an American-made, custom case goods manufacturer. While spending a little more up front, hoteliers can be assured of the following quality benefits:
- Shorter lead times
- Responsive communication
- Quicker access to replacement parts
- Reduced risk of defects
- Greater protection against counterfeits
- Safer materials & products
What’s more, long-lasting quality means your product should remain in great condition beyond the average 8-year hotel-renovation cycle. That’s a definite win for your ROI.
Material Selection: Laminate vs. Wood Veneer
When it comes to design, you’ll likely choose between a laminate and a wood veneer finish. Wood veneer - a thin layer of genuine hardwood glued to another wood surface - is often prized in upscale establishments for its “richer” look and feel.
Laminate is a less-expensive, man-made product composed of pressed synthetic and natural materials. Years ago, a laminate case good stood out as fake. But laminate technology has made great strides to feature an array of classy, realistic finishes and colors.
|
Wood Veneer |
Laminate |
|
Real wood finish |
More affordable |
|
Premium look & feel |
Durable & modern with advanced finishes |
|
Common in upscale / luxury hotels |
Ideal for midscale / upper-midscale properties |
While wood veneer can still be considered an upscale investment, laminate has closed the quality gap while remaining more economical. An experienced hotel furniture case goods manufacturer can accommodate both.
Learn More about Veneer Vs. Laminate
Download our Veneer Vs. Laminate Consideration Guide for Hospitality Case goods e-book right now!
Containing Hotel Construction Costs While Achieving Quality
Real estate prices and other key financial factors dictate the cost of building or renovating anywhere. A hotel construction or redevelopment project should be analyzed per room to know if the investment will pay off.
As a rule, consider that building or remodeling a midscale hotel in Manhattan is likely to cost more than building or remodeling an upscale hotel 75 miles south of Chicago. But guests everywhere appreciate quality furniture that’s:
- Functional
- Comfortable
- Aesthetically pleasing
The right choice will boost the brand’s reputation and bring ROI from new bookings and repeat visits.
Budget Rooms Smartly & Invest Wisely
Whether you're developing a boutique property or renovating a 300-room chain hotel, furniture is more than just a cost - it's a statement. It affects guest comfort, reviews, and brand image. Investing wisely in furniture today can pay off for years to come through durability, functionality, and style.
Let's talk about how value engineering can help your project succeed. Speak with a hotel furniture specialist today about your budget needs:
Editor's Note: This blog post was originally published December 4, 2017 and was updated on July 18th, 2025 to reflect updated information.