As travel rebounds and hotel occupancy climbs back toward pre-pandemic highs, hospitality development is accelerating across the country. Fueled by renewed demand for leisure travel, business trips, and group events, hotel construction is on the rise once again. In many markets, revenue per available room (RevPAR) has already surpassed 2019 levels, signaling a strong recovery and long-term growth for the industry.

At the same time, hotel brands and developers are evolving to meet new expectations. From sustainable design and extended-stay formats to mixed-use developments made possible by new housing legislation, the next generation of hotels looks very different than the last.

But even as the outlook improves, one persistent hurdle continues to slow projects down: permitting. The process remains time-consuming, inconsistent, and often opaque—especially for developers working across jurisdictions. Delays at this stage can have a ripple effect, impacting timelines, budgets, and bottom lines.

After helping permit boutique hotels, national rollouts, and large mixed-use hospitality projects across the U.S., we’ve put together this guide to share what we’ve learned.

Major Hotel Construction Challenges: Permit Delays

Despite the clear demand for new hotels and major renovations, developers face a major bottleneck: permitting delays. In cities across the U.S., securing entitlements and building approvals has become a longer, costlier process. McKinsey reports that permitting and zoning challenges have contributed to extended project timelines, making it harder to bring hotels to market quickly.

Hotels often require additional approvals beyond standard commercial projects, including zoning variances, environmental impact assessments, and occupancy permits. In high-growth markets such as New York City and Austin, local governments are struggling with permitting backlogs, exacerbating an already complex process.

Below, you’ll find essential steps, common challenges, and expert strategies to navigate the hotel permitting process—so you open your hotel faster, minimize costly delays, and maximize revenue.

Overview of Hotel Permitting

Key Types of Permits Required for Hotels

Developing and operating a hotel typically requires navigating a range of permits across multiple government agencies. While requirements vary depending on the location, most hotel projects will need to secure the following core permits:

• Zoning and Land Use Permits
• Building Permits
• Fire Safety and Life Safety Approvals
• Health Department Permits
• Environmental Impact Permits
• Signage and Exterior Permits
• Occupancy and Business Licenses

Understanding Local Jurisdiction and Multiple Permits

Most hotel permitting is governed at the local level (city or county), requiring developers to secure land use approvals (such as zoning or special use permits) before obtaining site and building permits. Depending on the project scope, additional permits may be needed for environmental impact, public works (like sidewalk or utility connections), and life safety systems (such as fire department, health department for pools and restaurants). Developers must submit detailed plans and reports to multiple agencies to demonstrate compliance with regulations.

Navigating Special Permit Processes like M1 Zones in New York City

In New York City's M1 zoning districts, hotel development now requires obtaining a special permit from the City Planning Commission (CPC). This change was expanded citywide in 2021, and aims to ensure that new hotels align with the surrounding area's character and do not conflict with existing uses. The special permit process involves a comprehensive review, including public input, to assess potential impacts on the neighborhood. Having an additional layer of approvals makes hotel development in NYC significantly more complex and time-consuming.

Hotel Construction Costs and Additional Factors

Construction Timelines and Delays

Obtaining all necessary approvals can be a lengthy process. Nationally, hotel permitting turnaround times have nearly doubled over the past decade. In markets like California and Florida, developers often face six to eight months of permitting delays. In New York City, the permitting phase alone takes 56% longer for hotels than for other building types, contributing to a development timeline that is, on average, one year longer than that of other commercial properties.

The True Cost of Hotel Permits

Permit fees and related costs such as impact fees, plan check fees, and consultant retainers can represent a small but essential portion of a hotel development budget. While these costs are predictable and easy to account for, unforeseen costs often come from delays in the permitting process.

For every week spent waiting on approvals, carrying costs like loan interest, insurance, property taxes, and staff overhead grows. For large-scale hotel projects, this can translate into tens or even hundreds of thousands of dollars in holding costs per month. These delays also push back the property’s revenue-generating timeline, which can affect everything from construction phasing to brand launch strategy.

In an industry where timing is critical, especially when aligning with peak travel seasons or event calendars, delayed permits can mean missing key market windows and reducing long-term profitability.

Seasonal Impacts on Hotel Permits

Seasonality can significantly impact the hotel permitting process, especially in locations with weather-related construction constraints. In cold climates, winter construction may require special permits for temporary heating and protective measures. Coastal and resort areas often experience high permitting demand before peak tourist seasons, potentially leading to processing delays. Developers should factor in lead times for permit approvals and align their construction schedule accordingly to avoid missing critical market windows. Early engagement with permitting authorities can help mitigate bottlenecks and prevent project slowdowns.

Permit Processes for New Construction vs. Renovation or Conversion

New Hotel Construction Permits

Secure entitlements: Developers must secure zoning approvals before applying for site and building permits. This may require rezoning, conditional use permits, or special permits, often involving public hearings and community engagement.

Comprehensive plan reviews: Submitted plans undergo extensive review for life safety, accessibility, and environmental compliance. Hotels face additional scrutiny due to occupancy load and safety features.

Environmental and infrastructure permits: Large hotels may require stormwater management permits, traffic impact analyses, or infrastructure connection approvals.

Health permits: Hotels that include multiple kitchens (restaurants, bars, room service) will require approvals from the relevant health jurisdiction. Often, amenity spaces like pools also require review.

Hotel Renovation or Conversion Permits

Zoning and land use code compliance: If you’re converting a non-hotel building (e.g., office, historic structure), developers must verify zoning compatibility or secure variances.

Building code upgrades: Hotels must meet updated fire safety, seismic, and accessibility standards, often necessitating retrofits (e.g., adding sprinklers, elevators).

Historic preservation: If working with a landmarked property, additional permits from historic commissions may be required.

Renovations: Pulling permits for simple renovations with interior-only scope (e.g., cosmetic updates) is often much faster and may only require over-the-counter approvals. However, major alterations can trigger full plan reviews.

Leverage Floor-by-floor Phasing for Simpler Reviews

The repetitive nature of hotel floor plans may allow for simple phasing of both design and plan reviews. This could open up more tailored timelines for developers.

Understanding Different Permit Approvals for Hotels

Zoning and Land Use Approvals

Zoning laws dictate where hotels can be built and establish requirements such as height restrictions, density limits, and parking provisions. Developers should begin by verifying that the chosen site is zoned for hotel use. If a zoning change or variance is required, the approval process can take months and involve public hearings. Engaging with local planning departments early and working with land use attorneys can help anticipate potential obstacles and build community support. Additionally, some jurisdictions have special requirements for hotels, such as mixed-use integration, environmental impact assessments, or affordable housing contributions.

Building Permits and Code Compliance

Multiple building permits are needed, including general construction, electrical, plumbing, and mechanical permits. The permitting process ensures compliance with building codes, fire safety standards, and accessibility regulations. Because hotels serve the public, they must meet stringent requirements under the Americans with Disabilities Act (ADA), which mandates accessible entrances, rooms, and amenities. Working with architects and engineers who specialize in hospitality projects can facilitate compliance and smooth the permitting process. Additionally, phased permitting—where foundational permits are approved before full construction permits—can help accelerate project timelines.

Environmental and Sustainability Regulations

Many jurisdictions impose environmental regulations, including stormwater management, energy efficiency standards, and green building requirements. Some cities require hotels to obtain LEED certification or comply with sustainability ordinances, and you may also need permits related to coastal zone management, wetlands protection, or historic preservation if the site has unique environmental or cultural considerations. Incorporating sustainable design elements, such as energy-efficient HVAC systems, solar panels, and water conservation measures, can not only meet regulatory requirements but also enhance operational cost savings and market appeal.

Tips for a Smoother Hotel Permitting Process

1. Conduct Thorough Due Diligence Upfront

Before acquiring a site, developers should review zoning codes, identify all potential permitting requirements, and flag any environmental or historic preservation concerns.

2. Engage Local Experts Early

Working with land use attorneys, permitting experts, and architects experienced in hospitality projects can help streamline the process and anticipate hurdles.

3. Build a Permitting Roadmap & Timeline

Developers should map out critical path approvals and consider parallel work streams to prevent one delayed permit from idling the entire project.

4. Anticipate Code Compliance Requirements

For conversions, an early code compliance study can identify necessary upgrades (e.g., fire sprinklers, seismic reinforcements) before they delay approvals.

5. Leverage Phased Permitting

Some jurisdictions allow phased permits (e.g., foundation permits issued before full construction approval) to accelerate timelines.

6. Find Land Use Bonuses

Some cities offer incentives—like additional floors or expedited land use reviews—when a building incorporates green technology, energy efficiency, or affordable housing.

7. Stay Organized and Responsive

Promptly addressing plan check comments, keeping documentation organized, and tracking expiration dates for permits can prevent setbacks.

8. Monitor Legislative and Code Changes

Developers should stay updated on evolving zoning laws and permit processing changes to adapt strategies accordingly.

Successfully permitting a hotel requires a proactive, well-planned approach. Project teams who understand zoning laws, adhere to building code requirements, account for seasonality, and engage community stakeholders can navigate the process efficiently. By leveraging best practices and working with experienced permitting professionals, hotel projects can move from concept to completion with fewer delays and optimized costs.

Get Hotel Permits Faster with Pulley

Navigating the permitting process for your hospitality project can be tricky and time-consuming. Pulley offers powerful workflow software and expert permitting services to help you submit more accurate permit applications and save on costly delays.

A few of the ways we can help get your rooms online ASAP:

• Reduce re-submissions
• Leverage any possible phased permitting
• Coordinate across contractors, the Authority Having Jurisdiction (AHJ), and the entire project team
• Deliver accurate approval forecasting so you can better plan and allocate resources
• Get to approval in weeks, not months

Interested in learning more? Request a demo.

‍