Guide
Hotel insurance cost per key
What hotels pay per room, what moves the number, and how to read it against revenue.
The short answer
The most recent per-room figures we could find published are CBRE's: $939 per available room on average in 2022, from $528 for limited-service hotels to $2,464 for resorts. Insurance expense has risen sharply since, up 19.5% through September 2023 and 17.4% in 2024 per CBRE. Wind exposure, insured value per key, and liability profile explain most of the spread, so a Gulf Coast beachfront hotel and an inland select-service hotel are not comparable.
General information, not legal, tax, or coverage advice. What's covered depends on your specific policy wording, and the policy controls. Current as of October 2026.
Published data
What does hotel insurance cost per key?
CBRE Hotels Research publishes the most widely cited per-room insurance figures, drawn from its Trends in the Hotel Industry survey of operating statements. Insurance is reported per available room (PAR), which is the same as per key.
| Insurance per available room | 2021 | 2022 |
|---|---|---|
| All hotels in the sample | $784 | $939 |
| Resort hotels | $2,224 | $2,464 |
| Limited-service hotels | $482 | $528 |
| Extended-stay hotels | $413 | Not reported |
Mountain/Pacific, 2022
$1,220
per available room
Southeast, 2022
$1,156
per available room
North Central, 2022
$479
per available room
These numbers are old, and the direction since is up. The 2022 figures predate the increases CBRE reported next: insurance expense up 19.5% through September 2023 over 2022, and up 17.4% in 2024. CBRE put the long-run 2015 to 2022 growth rate at 6.2% a year, and estimated 2023 insurance at 1.7% of total operating revenue against a 1.2% long-run average.
What we could not find. We did not find a published per-key figure for full-service hotels as their own category, or for Gulf Coast hotels specifically. The Southeast figure above is a regional average across hotel types, not a coastal benchmark. If you see a precise per-key number for a coastal hotel without a source, treat it with caution.
Sources: CBRE Hotels Research, Hotel Insurance: A Largely Uncontrollable Cost (March 2022, 2021 figures, 3,156 hotels); Hotel Insurance: A Rising Expense with Limited Control (February 2024, 2022 figures and the 19.5% and 6.2% growth rates); All Eyes on Operating Costs in 2025 (May 2025, 17.4% in 2024). All from CBRE's Trends in the Hotel Industry survey.
Pricing
What drives the cost of hotel insurance?
Carriers don't price off room count. Key count is just the denominator we use to compare.
Insured value per key
Property premium follows total insured value, not room count. A 150-key resort with a large lobby, pool deck, and F&B outlets carries far more value per key than a 120-key select-service hotel. A stale replacement cost value understates the base the rate is applied to.
Wind and flood exposure
Distance to the water drives the market you are placed in, the rate, and the named-storm deductible. Two hotels with the same key count can differ several times over because one is inland and one is beachfront.
Liability, liquor, and amenities
Pools, bars, banquets, and events add general liability, liquor liability, and umbrella premium. Guest premises liability is the line most often rising at renewal.
Flag requirements
The franchise agreement sets minimum limits and terms, and those can change mid-term. See the franchise insurance requirements guide for how that plays out.
Loss history and condition
Five years of loss runs, roof age, building age, life-safety systems, and security all move the price. Documented maintenance and mitigation help the submission.
More detail: franchise requirements and Gulf Coast hotel insurance.
Segment and location
How does cost differ for select-service, full-service, and resort hotels?
CBRE's data shows the pattern. Limited-service and extended-stay hotels pay the least per key ($528 and $413 in the 2022 and 2021 data) because the building is smaller and there is little beyond rooms to insure. Resorts pay the most ($2,464 in 2022) because of value per key, amenities, and, often, location.
Full-service hotels sit between the two, but we did not find a published figure for them, so we don't state one. Meeting space, F&B, and a bar program push liability and property values up from select-service.
Inland versus coastal is a separate axis from segment. A beachfront select-service hotel in Gulf Shores, Alabama can cost more per key than an inland full-service hotel, because named-storm wind is priced separately and often sits in the E&S market.
Worked example
What does this look like at $50k+ premium?
Two illustrative hotels. These are not quotes or market data. The per-key premiums are our assumptions, set near the CBRE 2022 figures for limited-service and resort hotels and nudged up for the increases CBRE has reported since. Revenue and expense figures are also assumed. The math is the same as in the hotel insurance calculator.
120-key select-service, Birmingham, Alabama
- Assumed: ADR $130, occupancy 68%, other revenue $150,000, total expenses $2,600,000 including insurance.
- Assumed insurance: $750 per key.
- Annual premium
- $90,000
- RevPAR
- $88
- Insurance per available room night
- $2.05
- Insurance as % of total revenue
- 2.2%
- Insurance as % of expenses
- 3.5%
150-key beachfront, Gulf Shores, Alabama
- Assumed: ADR $260, occupancy 65%, other revenue $2,000,000, total expenses $7,600,000 including insurance.
- Assumed insurance: $2,000 per key.
- Annual premium
- $300,000
- RevPAR
- $169
- Insurance per available room night
- $5.48
- Insurance as % of total revenue
- 2.7%
- Insurance as % of expenses
- 3.9%
The beachfront hotel is not twice as expensive per key. It is a different kind of risk, with named-storm exposure, layered capacity, and a percentage deductible, which is why the comparison between the two is not a rate to shop against.
Benchmarking
How should I read insurance against revenue?
Per key tells you what you pay for the building. It does not tell you whether you can afford it. Two other views do.
Percent of total revenue. CBRE's 2022 long-run average was 1.2% and its 2023 estimate 1.7%. Compare your own ratio on total revenue, including F&B and other income, since that is how CBRE reports it.
Per available room night. Divide the premium by keys times 365 and set the result next to RevPAR. It shows how many dollars of every room-night's revenue go to insurance before anything else.
Insurance sits below gross operating profit, so it comes straight out of EBITDA, and a premium change moves value and debt coverage more than most operating lines. The hotel insurance calculator runs all of it from your own numbers, free, with no email required.
At renewal
What should I do when my hotel renewal jumps?
Start before the renewal date, with the lender and the flag in mind. Four pages cover the next steps: whether the increase puts you under a loan covenant (DSCR covenant guide), whether a higher wind deductible would cut cost (wind deductible buy-down), whether a blanket program makes sense across several hotels (hotel portfolios), and what the flag actually requires (franchise requirements). For where rates are heading, see the rate barometer.
A review is not a quote or a binder, and we can't promise a result until the market responds.
FAQ
Common questions about hotel insurance costs
How much does hotel insurance cost per room?
CBRE's Trends in the Hotel Industry survey reported an average of $939 per available room in 2022, with limited-service hotels at $528 and resorts at $2,464. Costs have risen since then: CBRE reported insurance up 19.5% through September 2023 over 2022 and up 17.4% in 2024. Your number depends on insured value, wind exposure, and liability profile.
How much is hotel insurance for a small hotel?
For a small limited-service hotel, the published CBRE average was $528 per available room in 2022 (all-hotel average $939). Premium for a 60-key hotel is therefore usually well below the $50,000 range where we spend most of our time.
Is insurance per key or per room the same thing?
Yes. CBRE reports it per available room (PAR), which is the same as per key. It is calculated on rooms available, not rooms occupied, so it does not move with occupancy.
Why does a coastal hotel cost so much more than an inland hotel?
Named-storm wind and surge exposure. Coastal properties are often placed in the excess and surplus lines market, with percentage deductibles and layered capacity. CBRE's 2022 regional data shows the Southeast at $1,156 per available room against $479 in the North Central region, though those are regional averages across all hotel types, not Gulf Coast figures.
What percentage of hotel revenue goes to insurance?
CBRE's long-run average through 2022 was 1.2% of total operating revenue, and its 2023 estimate was 1.7%. Extended-stay hotels were highest at 1.9% in 2022, and convention hotels lowest at 1.1%.
Can I lower my hotel insurance cost?
Sometimes, but we can't promise a result until the market responds. Owners who haven't remarketed in a few years, who hold limits that don't match the property's actual exposure, or who have documented roof and life-safety improvements have the most to work with. A pre-renewal review is the place to start.
Working with us
Hotel programs, placed from Birmingham
ACREInsure.com is based in Birmingham, Alabama, and places hotel programs nationwide. Send us your current program and schedule of values and we will review it against your revenue, lender, and flag requirements before renewal.
This article is for general educational purposes only. It isn't legal, tax, accounting, or lending advice and doesn't create a producer–client relationship. Policy terms, exclusions, and availability vary by carrier, state, and property. Only the policy actually issued determines coverage. Regulatory and lender requirements change; confirm current rules with your attorney, lender, or servicer before relying on anything here.
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