4 ms·
I recently read about the cost of building a hotel. I could barely believe what I was reading. A 2,000 sq ft house with all the amenities that go with it can be
by transfire 11y ago
I recently read about the cost of building a hotel. I could barely believe what I was reading. A 2,000 sq ft house with all the amenities that go with it can be built for around $250,000. But a 500 sq ft hotel room costs over a $1,000,000. It doesn't make a lot of sense. How can there be an inverse economy of scale?
- tamana 11y agoA skyscraper might cost that much. building more than a couple stories gets expensive.
- pliny 11y agoIs that the actual cost per room or the cost of the hotel divided by the number / sq-footage of rooms? Hotels have a lot of things that private homes don't, like gyms and restaurants, and the land is naturally more expensive (because hotels tend to be built inside the city and near attractions, often in ritzy areas), they also have a lot of fixtures and furniture (and you need to stock extra in case they're damaged, and you need an area to keep all your extras...) that might not be included in the cost of building a home. Finally, building a hotel incurs costs like paying bribes or protection money, that private homeowners pay more seldom.