Hotel Project Budget Template

As the project progresses, log costs in the Actual Costs sheet each time invoices are reviewed and approved — most hotel projects run on monthly draw cycles, so entering costs once per cycle is practical. Assign each entry to its cost category and the running totals update automatically. Track change orders in the Change Orders sheet as they arise: enter them as pending when submitted, update to approved when the owner signs off. Approved change orders will adjust your revised budget total on the Project Setup sheet, so the budget vs actual comparison always reflects current scope. Hotels tend to accumulate change orders from concealed conditions and brand standard modifications, so keeping this log current is more important than it might seem on a straightforward renovation.

Hotel project budgets need to track five distinct cost components that behave very differently from each other. Hard construction costs — the actual renovation work performed by your general contractor and subs — move through monthly draw requests tied to percent complete and are the easiest to monitor. FF&E procurement runs on purchase orders with long lead times, meaning you can be fully committed before a single piece of furniture arrives on property; the budget needs to reflect PO value, not just received goods. OS&E tends to accumulate in the final months of a project and is chronically underestimated. Soft costs (design, legal, permits, brand application fees) are often fixed at the start of the project but can change with scope creep. And contingency — typically 5–15% of hard costs on hotel renovations — exists to absorb the inevitable, but tracking how it's being drawn down is essential to knowing whether you have enough runway to close the project.