What is the construction cost of hotels in Japan in terms of unit price per square meter?
In the previous issue of the “Special Report on Construction Cost per Square Meter,” we introduced construction costs for commercial stores. In this issue, we will introduce the construction cost of hotels in Japan in 2020 by focusing on the unit price per square meter.
The unit price per square meter for hotels by structure was approximately JPY 389,000 per square meter for steel structures.
First, a look at the construction cost of hotels nationwide in 2020 by structure shows that the highest unit cost per square meter was JPY 408,000 per square meter for steel reinforced concrete structures. This was followed by steel structures and reinforced concrete structures at JPY 389,000 per square meter and JPY 324,000 per square meter, respectively. On the other hand, the unit price per square meter for wood structures was JPY 218,000 per square meter. (See figure below)
In the above figure, the average unit price per square meter of all structures is JPY 355,000 per square meter, which is between the cost of steel structures, which cost JPY 389,000 per square meter, and reinforced concrete, which cost JPY 324,000 per square meter. This is probably due to the fact that about 90% of hotels in Japan are constructed as steel or reinforced concrete structures. (See figure below)
Tokyo had the highest unit price per square meter of hotels by prefecture, followed by Shizuoka and Osaka.
Looking at the construction cost of hotels by prefecture in 2020 shows the highest was JPY 448,000 per square meter in Tokyo, followed by JPY 428,000 per square meter in Shizuoka, JPY 426,000 per square meter in Osaka, JPY 414,000 per square meter in Hokkaido, and JPY 385,000 per square meter in Fukuoka. This suggests that construction costs in Tokyo, Shizuoka, Osaka and Hokkaido are notably high compared to those of other regions, exceeding the level of JPY 400,000 per square meter. On the other hand, the lowest unit price per square meter was JPY 236,000 in Hyogo, followed by JPY 237,000 in Gifu, JPY 252,000 in Kagoshima, and JPY 271,000 in Okayama. (See figure below)
Hotel construction costs in Tokyo are falling, but costs nationwide are rising.
(1) Hotel construction costs in Tokyo have shifted to a decline, falling to JPY 448,000 per square meter.
Looking at construction costs for hotels in Tokyo from 2011 to 2020 shows that they were generally flat from 2011 to 2013, then rose sharply from a low of JPY 286,000 per square meter in 2013 to JPY 464,000 per square meter in 2016, before falling to JPY 438,000 per square meter in 2017. Then, it increased to JPY 500,000 per square meter in 2018 and JPY 510,000 in 2019, showing an upward trend for two consecutive years. However, in 2020, it fell to JPY 448,000 per square meter. (See figure below)
(2) Hotel construction costs in Japan continue to rise.
Similarly, when we look at construction costs for hotels nationwide, we see that they have been on a continuous upward from 2011, when they cost JPY 208,000 per square meter, to 2016, when they jumped to JPY 338,000 per square meter. However, as with construction costs in Tokyo, they fell to JPY 335,000 per square meter in 2017. From there, they increased to JPY 351,000 in 2018, JPY 369,000 in 2019, and JPY 389,000 in 2020, indicating an upward trend that has been ongoing for 3 consecutive years. (See figure below)
In this issue of the “Special Report on Construction Costs per Square Meter,” we introduced construction costs per square meter for hotels.
It is worth mentioning that acquiring construction costs using statistical data introduced in this column is suitable for grasping construction cost trends in a large market covering cities or the entire country, but is not as suitable for projects that are highly individualized or require high accuracy.
For more construction cost information, please click below.
- Construction cost for Apartment Complexes
- Construction cost for Detached Residences
- Construction cost for Rental Apartments
- Construction cost for Shared Residences
- Construction cost for Residences
- Construction cost for Office Buildings
- Construction cost for Factories
- Construction cost for Warehouses
- Construction cost for Commercial Stores
- Construction cost for Hotels
- Construction cost for Hospitals
- Construction cost for Welfare and Nursing Care Facilities
- Construction cost for Schools
Reference｜Data List
Construction Costs Per Square Meter in Japan｜Steel Structure Hotels
| Prefectures in Japan | Construction Costs (Unit : Thousand yen per square meter) |
|---|---|
| Tokyo | 448 |
| Shizuoka | 428 |
| Osaka | 426 |
| Hokkaido | 414 |
| Fukuoka | 385 |
| Okinawa | 365 |
| Fukushima | 363 |
| Kyoto | 331 |
| Chiba | 318 |
| Okayama | 271 |
| Kagoshima | 252 |
| Gifu | 237 |
| Hyogo | 236 |
| Nationwide | 389 |
Source: Compiled based on the Statistical Survey of Building Starts (Ministry of Land, Infrastructure, Transport and Tourism) (as of 2020)
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