Cost per Key Calculator
Calculate total hotel investment per completed guest room.
Compare hotels with a consistent standard and cost scope, including the same treatment of land and FF&E.
Continue in the full model.
Move from this screening result to the complete Hotel Development Model.
Get the model · €79 incl. VATHow the Cost per Key calculation works
Cost per key = total hotel development cost ÷ completed hotel rooms.
Example calculation
€30m of total project cost for 150 rooms equals €200k per key.
How professionals use the result
Use cost per key to compare hotel projects, but separate land, construction, FF&E and pre-opening costs when benchmarking.
Common mistakes
- Excluding FF&E or pre-opening costs
- Using gross planned rooms rather than saleable rooms
- Comparing different hotel standards
- Ignoring land and finance definitions
Cost per Key Calculator FAQs
What does the Cost per Key calculator measure?
Calculate total hotel investment per completed guest room.
What formula does the Cost per Key calculator use?
Cost per key = total hotel development cost ÷ completed hotel rooms.
Is the result suitable for a final investment decision?
Use it as a transparent screening calculation. Validate deal-specific tax, timing, financing and legal assumptions in a complete underwriting model before making a decision.
Do I need an account?
No. The calculator is free and runs in your browser. FormulaPlanet does not store your projects, inputs or results.
Is any input sent publicly?
No calculation is public by default. A shareable link is only created when you explicitly choose to copy one; that link contains the assumptions shown in its URL.
Why might my spreadsheet give a different answer?
Differences usually come from timing, compounding, sign conventions, fees or a different definition of the numerator or denominator. Match every period and definition before comparing.
What should I review alongside this result?
Use cost per key to compare hotel projects, but separate land, construction, FF&E and pre-opening costs when benchmarking.
Which mistakes are most common?
Excluding FF&E or pre-opening costs; Using gross planned rooms rather than saleable rooms; Comparing different hotel standards; Ignoring land and finance definitions.