Last Updated on January 3, 2016 at 7:52 pm
Living in a hotel after retirement has been my fantasy for long. Let us calculate how much it would cost to live in a hotel after retirement.
Yes, this is a fantasy post and I will never be able to pull it off, but it is intriguing to calculate the costs and consider the benefits of hotel living.
The first time I was exposed to the idea of hotel living was when I saw the James Bond movie, Diamonds are Forever.
There was a character (a bad guy of course) who live in the top floor of a Las Vegas casino. He was modelled after maverick tycoon, Howard Hughes (the ‘aviator’) who spent years in a hotel (at Las Vegas where he owned several).
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! 🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
Ah! To be a recluse seems so inviting! Only the rich can afford that though.
A fantasy that was gathering dust at the back of my mind was jolted back to life by two events that occurred in the last two weeks:
1) Dadi Balsara, who founded the Mount Everest Water company (and sold it to Tata) died last week. after staying in room no 901 of the TajManSingh Hotel since it started in 1978. That was his official address! The 5-star hotel rewarded his loyalty by charging his only Rs. 15,000 a day. He had Rs. 250 Cr in his account when he died, so it was not much of an issue for him!
2) Omar Sharif who remains immortal on screen in Lawrence of Arabia and Dr. Zhivago, died a few days ago after long hotel stays in Cairo and Paris. He is supposed to have loved that fact that all the staff knew him and he did not have to worry about cleaning and an ambulance was available on call when he needed one!
Hotel living has some serious advantages the way I see it. We don’t have to clean or cook and worry about property and water taxes.
Photo credit: PortoBay Hotels & Resorts (flickr)
We can be as social as we want to be: stay in your room or have an active social life.
Instead of living in a remote retirement villa or alone at home, there would be a doctor on call and an ambulance to take us to the best hospitals in the city.
The more I think about it, the more I fall in love with the idea.
Now, what would it cost a couple (with no children or with independent children) to live in a hotel?
Let us assume they opt for a three-star hotel.
The current tariff in a hotel I know is Rs. 4500 per day (all inclusive+ breakfast).
Taking into account Rs. 1000 (all inclusive) per person, per meal, the couple would need to spend about Rs. 10,000 a day.
That is Rs. 36.5 Lakhs a year on hotel costs alone. If we add tips, other expenses such as travel, medicines etc., let us make it a safe and round Rs. 45 Lakh a year.
Now if this is the current cost, how much would it take to live in such a hotel for 25 years?
The biggest advantage of hotel living is royalty benefit. Your costs will not increase as much as it would elsewhere. So let us assume a low inflation of 6% a year.
We invest in such a way that the entire portfolio earns about 8% a year after taxes. Not easy, but we will go with it.
With these assumptions, the corpus need for 3-star hotel living is about Rs. 9.1 Crores.
This is not such a high figure. Unattainable for me, but it is not as high as I thought it would be.
If I wait for 10 years and then choose to live a hotel, I will need Rs. 23.5 Cr at 10% inflation (no loyalty benefit before you become a guest!) 🙁
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
![Follow Freefincal on Google News Follow Freefincal on Google News](https://freefincal.com/wp-content/uploads/2023/07/Follow-Freefincal-on-Google-News.jpg)
![Subscribe to the freefincal Youtube Channel Subscribe to the freefincal Youtube Channel. Subscribe button courtesy: Vecteezy.](https://freefincal.com/wp-content/uploads/2023/07/Subscribe-to-the-freefincal-Youtube-Channel.jpg)
![Follow freefincal on WhatsApp Channel Follow freefincal on WhatsApp Channel](https://freefincal.com/wp-content/uploads/2023/09/Follow-freefincal-on-WhatsApp-Channel-300x83.jpg)
![Listen to the Lets Get Rich with Pattu Podcast Listen to the Lets Get Rich with Pattu Podcast](https://freefincal.com/wp-content/uploads/2023/07/Listen-to-the-Lets-Get-Rich-with-Pattu-Podcast.jpg)
![Lets Get RICH With PATTU podcast on YouTube Lets Get RICH With PATTU podcast on YouTube](https://freefincal.com/wp-content/uploads/2023/08/Lets-Get-RICH-With-PATTU-podcast-on-YouTube-644x362.jpg)
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
About The Author
![Pattabiraman editor freefincal](https://freefincal.com/wp-content/uploads/2019/11/Pattabiraman-author-freefincal-article-bottom.jpg)
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
![Both boy and girl version covers of Chinchu gets a superpower](https://freefincal.com/wp-content/uploads/2021/02/Article-bottom-Chinchu-gets-a-superpower-front-cover-for-girls-and-boys.jpg)
![Feedback from a young reader after reading Chinchu gets a Superpower (small version)](https://freefincal.com/wp-content/uploads/2021/02/For-bottom-Feedback-from-a-young-reader-after-reading-Chinchu-gets-a-superpower.jpg)
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
![You can be rich too with goal based investing](https://freefincal.com/wp-content/uploads/2016/11/You-can-be-rich-243x300.jpg)
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
![Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you want](https://freefincal.com/wp-content/uploads/2017/05/2-mini-Cover-pink.jpg)
Your Ultimate Guide to Travel
![Travel-Training-Kit-Cover-new](https://freefincal.com/wp-content/uploads/2019/11/Travel-Training-Kit-Cover-new.jpg)