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I would like to build a motel about 40 rooms.Not a franchise. how much minimum it could cost me.

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Adams Ruben

Sep 24, 2016
Phil Morgan
Positive Revolution
San Diego County, CA

depends where

Apr 29, 2013
William A. Price
Business Lawyer
DuPage County, IL

The Dodge Construction Cost Statistics is the standard reference in the Chicago area for developers, architects, and others interested in possible project costs. You can and should use a good architect and general contractor to help estimate and manage costs.

Your question is not, however, the right one, since cost minimization is a lot less important in realizing return on your equity investment than the following:

-- Local bank or other specialized lender availability in the proposed motel site area and nationally for the type of property you propose to build;

-- Minimum capitalization requirements to qualify for construction and then for working capital loans to build and operate the facility;

-- Market needs for particular types of hospitality properties, and a clear niche (with sustainable competitive advantage, such as Interstate highway visibility, or historic property use, or local economic development and tourism entities records of and promises for marketing support) for the proposed property type and site. If your target area would support a luxury property better (and with higher margins) than a dump, you don't want to build a dump, even if it would be cheaper per square foot.

Hope this helps,

Bill Price

Mar 26, 2013
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The BAF Group LLC

Developing or building a non-franchised motel is extremely difficult. Generally speaking, you will probably need 25% to 30% down. You will need to show that you have a huge amount of experience and expertise, in building such a business. Lenders are still very timid about motels, generally; one of the only things that gives them the incentive to back such businesses is the franchise.

Jan 14, 2013

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