Hotel renovation in Riyadh ranges from a cosmetic soft refurbishment costing SAR 30,000–60,000 per key to a full gut renovation that costs as much as building new. Understanding which scope your asset requires — and what drives cost within each scope — is the starting point for any credible renovation business case.
This guide provides current cost benchmarks for hotel renovation in Riyadh across all renovation types, including brand-mandated Property Improvement Plans (PIPs), MEP upgrades, and conversion projects. For new-build hotel cost benchmarks, see our hotel construction cost guide.
Why Hotels Require Renovation
Hotels in Saudi Arabia typically require renovation on three timescales:
- Soft goods cycle (5–7 years): Carpets, soft furnishings, bedding, curtains, and paint deteriorate through guest use. A soft refurbishment replaces these items without structural or MEP work.
- Full room refurbishment (8–12 years): Bathroom tiles and sanitaryware, joinery, wall finishes, and guest room MEP controls require replacement. International brand standards typically trigger a full PIP at this interval.
- Major renovation (15–25 years): Complete replacement of MEP systems, structural modifications, and full fit-out across all areas. At this stage, renovation costs approach new-build.
Vision 2030 is accelerating renovation activity across Riyadh's hotel stock. Assets built in the 2000s and early 2010s are being renovated to compete with the new supply entering the market. Operators are requiring brand-standard upgrades as part of management contract renewals.
Renovation Cost by Scope
Soft Refurbishment (Cosmetic Only)
Scope: replacement of soft furnishings, carpets, curtains, bedding, paint, and artwork. No demolition, no MEP work, no structural changes.
| Hotel Category | Cost per Key (SAR) | Notes |
|---|---|---|
| Economy / 2-star | SAR 15,000 – 30,000 | Basic FF&E replacement |
| Limited service / 3-star | SAR 30,000 – 55,000 | Brand soft goods specification |
| Full service / 4-star | SAR 55,000 – 100,000 | Brand-specified FF&E package |
| Upper upscale / 5-star | SAR 100,000 – 200,000 | Custom FF&E, bespoke fabrics |
Soft refurbishments are typically completed room-by-room with the hotel remaining open. A 150-room hotel can complete a rolling soft refurbishment in 4–6 months with 10–15 rooms out of service at any time.
Full Room Refurbishment (PIP Scope)
Scope: strip out and replace all bathroom finishes (tiles, sanitaryware, vanity), joinery (wardrobes, headboard unit, minibar housing), bedroom finishes (flooring, ceiling, feature wall), and guest room MEP (fan coil unit, sockets, USB points, room controls). Soft goods are replaced as part of the same project.
| Hotel Category | Cost per Key (SAR) | Typical Duration per Room |
|---|---|---|
| Economy / 2-star | SAR 55,000 – 95,000 | 5 – 8 days |
| Limited service / 3-star | SAR 90,000 – 160,000 | 7 – 12 days |
| Full service / 4-star | SAR 150,000 – 280,000 | 10 – 18 days |
| Upper upscale / 5-star | SAR 280,000 – 550,000 | 14 – 25 days |
Full room refurbishments require the room to be fully vacated and handed over to the contractor. Most operators run a rolling programme with 15–25% of rooms under renovation at any time, allowing the hotel to continue trading. Dar Anan's hospitality fit-out team is experienced in managing rolling renovation programmes in occupied hotels, with strict noise and dust protocols between 08:00 and 18:00.
Public Area Renovation
Lobby, restaurant, meeting rooms, pool, fitness, and back-of-house renovation typically runs in parallel with or immediately follows a guest room PIP programme. Public areas are more complex to renovate in an operational hotel because they cannot be taken out of service room-by-room — they must be closed in phases or temporarily relocated.
| Area | Renovation Cost (SAR/sqm) | Notes |
|---|---|---|
| Lobby and reception | SAR 4,000 – 11,000 | Stone, feature ceilings, lighting |
| Restaurant / all-day dining | SAR 4,500 – 12,000 | Kitchen adjacency may require MEP work |
| Meeting rooms | SAR 3,500 – 8,000 | AV upgrades often included |
| Fitness centre | SAR 3,000 – 7,000 | New equipment typically excluded |
| Pool area | SAR 5,000 – 16,000 | Pool resurfacing, deck, landscaping |
| BOH / corridors / service areas | SAR 1,000 – 2,500 | Functional finish only |
MEP Systems Overhaul
MEP system overhaul is the most disruptive and often most expensive component of a major hotel renovation. Chilled water plants, electrical distribution boards, plumbing risers, and fire systems have design lives of 20–30 years, but hotel-grade equipment is run continuously and often reaches the end of its effective life sooner.
| MEP Scope | Cost Range (SAR/sqm of GFA) |
|---|---|
| HVAC — chiller plant replacement | SAR 300 – 700 |
| HVAC — FCU replacement (guest rooms) | SAR 150 – 350 |
| Electrical — LV board replacement and rewire | SAR 200 – 500 |
| Plumbing — riser and hot water system replacement | SAR 180 – 400 |
| Fire systems — detection and suppression upgrade | SAR 120 – 280 |
| Low voltage — BMS, IT, security upgrade | SAR 150 – 400 |
A full MEP overhaul of a 150-room, 9,000 sqm hotel in Riyadh typically costs SAR 12M–28M depending on system condition and specification level. MEP overhaul almost always requires a full hotel closure or phased floor-by-floor closure, as the work is incompatible with occupied operations. See our hotel MEP requirements guide for detailed system specifications.
Full Gut Renovation
A full gut renovation strips the building back to structure and rebuilds all fit-out, MEP, and finishes from scratch. This is appropriate when the asset has reached end-of-life on all systems simultaneously, or when the hotel is being repositioned to a higher category that requires structural changes.
| Hotel Category (post-renovation) | Full Gut Renovation Cost (SAR/sqm) | Cost per Key |
|---|---|---|
| 3-star repositioned | SAR 3,500 – 5,500 | SAR 200,000 – 380,000 |
| 4-star repositioned | SAR 5,500 – 9,000 | SAR 380,000 – 650,000 |
| 5-star repositioned | SAR 9,000 – 14,000 | SAR 650,000 – 1,100,000 |
Full gut renovation costs are typically 55–75% of new-build cost for the same category, reflecting the saving on structure and foundations while carrying the additional cost of demolition, working around existing structure, and coordination with building systems that are being replaced in sequence.
Sample Renovation Budgets
100-room 3-star hotel — full PIP renovation (rooms only):
- Guest room refurbishment (100 keys × SAR 130,000): SAR 13,000,000
- Corridor and lift lobby finishes: SAR 1,200,000
- Contingency (10%): SAR 1,420,000
- Total: SAR 15,620,000 (SAR 156,200 per key)
150-room 4-star hotel — PIP including public areas:
- Guest room refurbishment (150 keys × SAR 220,000): SAR 33,000,000
- Lobby renovation (600 sqm × SAR 7,500): SAR 4,500,000
- Restaurant renovation (400 sqm × SAR 9,000): SAR 3,600,000
- Meeting rooms (300 sqm × SAR 6,000): SAR 1,800,000
- Corridors and public toilets: SAR 2,000,000
- Contingency (12%): SAR 5,388,000
- Total: SAR 50,288,000 (SAR 335,000 per key)
200-room 5-star — major renovation including MEP overhaul:
- Guest room refurbishment (200 keys × SAR 420,000): SAR 84,000,000
- Public area renovation: SAR 18,000,000
- MEP systems overhaul: SAR 22,000,000
- Contingency (15%): SAR 18,600,000
- Total: SAR 142,600,000 (SAR 713,000 per key)
Renovation vs New-Build: Which Makes More Sense?
The decision between renovation and demolition/new-build depends on three factors: structural condition, repositioning potential, and land value. As a general rule:
- If renovation cost exceeds 65% of new-build cost for the same category, new-build should be seriously evaluated.
- If structural condition is poor (concrete carbonation, rebar corrosion, foundation issues), new-build is almost always preferable.
- If the land value significantly exceeds the value of the existing hotel as a going concern, demolition and redevelopment may generate better returns.
Dar Anan's team can conduct a condition survey and provide a comparative cost analysis for renovation versus new-build as part of our pre-construction services. Contact us to discuss your asset.
How Long Does Hotel Renovation Take?
| Renovation Scope | Typical Duration | Hotel Closure Required? |
|---|---|---|
| Soft refurbishment (rolling) | 4 – 8 months | No — 10–20% of rooms at a time |
| Full PIP — rooms only (rolling) | 8 – 18 months | No — phased programme |
| Full PIP including public areas | 10 – 24 months | Partial — public areas closed in phases |
| MEP overhaul | 6 – 14 months | Usually yes — floor by floor |
| Full gut renovation | 18 – 36 months | Yes — full closure |
For permit requirements for hotel renovation in Saudi Arabia, including MOMRA and Civil Defence approvals, see our hotel construction permits guide. To discuss your renovation project, contact Dar Anan.