If you've just received a property improvement plan from your franchisor, your first question is almost always the same: how much is this going to cost? The honest answer is that it depends — but it depends on specific, knowable factors. This guide breaks down hotel PIP renovation costs by brand tier, explains what drives the variance, and gives you per-key ranges you can use right now.

The Short Answer: PIP Costs by Brand Tier

Hotel PIP renovation costs vary primarily by brand tier, not just brand name. Here are typical all-in per-key ranges for a full PIP (not a soft-goods-only refresh):

Economy (Motel 6, Econo Lodge, Super 8): $8,000–$15,000 per key
Midscale (Holiday Inn Express, La Quinta, Comfort Inn): $12,000–$22,000 per key
Upper Midscale (Hampton Inn, Fairfield, Courtyard): $18,000–$32,000 per key
Upscale (Hilton Garden Inn, Hyatt Place, Residence Inn): $25,000–$45,000 per key
Upper Upscale / Full Service (Marriott, Hilton, Hyatt, DoubleTree): $40,000–$80,000+ per key

A 120-key Hampton Inn PIP, for example, typically runs $2.5M–$4M all-in. A 200-key full-service Marriott PIP can exceed $12M.

The 4 Cost Components of Any Hotel PIP

Every hotel PIP renovation budget has four components. Understanding each helps you pressure-test any estimate you receive.

1. FF&E (Furniture, Fixtures & Equipment)

FF&E is typically the largest single line item in a PIP budget, often representing 35–50% of total cost. This covers guestroom furniture (beds, case goods, seating), soft goods (bedding, drapery, carpet), lighting fixtures, artwork, and lobby furnishings. Brand specifications are precise — approved vendor lists, specific fabric weights, minimum quality standards — which limits your ability to shop for cheaper alternatives.

2. Construction & Hard Costs

Construction covers everything from bathroom tile replacements to corridor flooring, lobby renovations, exterior work, and mechanical/electrical upgrades. For upper midscale and above, bathroom renovations alone can run $4,000–$8,000 per key. Construction costs are highly market-dependent — labor rates in New York City or San Francisco are 40–60% higher than in secondary markets.

3. Soft Costs

Soft costs include design fees, project management, permitting, inspections, and brand-required third-party reviews. Budget 8–12% of hard costs for soft costs. If you're hiring an outside PIP consultant or project manager, add their fee on top — typically $15,000–$50,000 depending on project size.

4. Contingency

Never budget a hotel PIP without a contingency line. The industry standard is 10–15% of total project cost. Hidden conditions (asbestos, outdated wiring, plumbing surprises behind walls) are common in older hotels. A 10% contingency on a $3M PIP is $300,000 — real money, but far less painful than running out of budget mid-renovation.

What's Driving Costs Higher in 2025–2026

Tariff Impact on FF&E

The 2025 tariff environment added 5–10% to FF&E costs across the board. Much of the furniture and case goods specified in brand PIP requirements is manufactured in Asia. Owners who locked in FF&E contracts before April 2025 fared significantly better than those purchasing in Q3–Q4.

Labor Market Pressure

Construction labor costs continue to rise in most major markets. Skilled trades — electricians, plumbers, tile setters — are in short supply in many metros. If your property is in a high-demand market, pad your construction budget by 10–15% over published cost guides.

Brand Standard Inflation

Brands update their standards every 3–5 years, and each cycle typically adds scope — new technology requirements (USB-C charging, smart TVs, high-speed Wi-Fi infrastructure), updated fitness center equipment standards, enhanced breakfast areas. Each addition adds cost.

What Drives the Variance Within a Tier

Two Courtyard by Marriott PIPs can differ by $5,000+ per key. The main drivers:

Age of property: Older hotels (pre-2000 construction) typically require more hard construction — plumbing, electrical, structural — on top of soft goods.
Time since last renovation: A hotel that had a partial renovation five years ago will have a smaller PIP than one that hasn't been touched in 15 years.
QA score at time of PIP: Properties flagged for quality issues often receive more extensive PIPs with tighter specifications.
Market location: Labor and material costs vary by 30–50% between low-cost and high-cost markets.
Scope of soft goods vs. hard renovation: A soft-goods PIP (carpet, bedding, window treatments) costs 40–60% less than a full hard-goods renovation.

How to Get a Fast, Defensible Estimate

Most owners get their first PIP cost estimate from a consultant — at a cost of $5,000–$15,000 and a wait of 2–4 weeks. PIPGURU provides the same defensible, line-item estimate in under five minutes, starting at $25 per estimate. You input the brand, property size, and key count. PIPGURU applies the same cost database used by leading hotel architecture firms to produce a per-key and total project estimate — broken down by category.

Use it before your ownership call. Use it to pressure-test a consultant quote. Use it to model what different renovation scopes would cost before you sit down with the brand.

How Much Does a Hotel PIP Cost in 2025?