Introduction: Are Hotels Really the Cheaper Option?
When companies arrange accommodation for contractors working away from home, hotels are often the first choice. They feel familiar, easy to book, and straightforward. But when you dig into the numbers — and the day-to-day reality for contractors — hotels can turn out to be far more expensive than expected.
Serviced accommodation, particularly large serviced homes, is quietly becoming the smarter, more cost-effective option for contractor stays across the UK. At Luke Stays, we work with businesses every day who’ve made the switch — and never looked back.
In this guide, we break down the real cost of contractor accommodation, comparing hotels vs serviced homes, so you can see exactly where the savings (and benefits) lie.
1. The Headline Cost: Nightly Rates vs Long-Term Value
At first glance, hotels often appear cheaper. A £90–£120 nightly rate might seem reasonable, especially for short stays. But contractor accommodation is rarely just a few nights.
The Hotel Reality
For a contractor staying 5–6 nights per week over several weeks:
- Nightly hotel rates add up quickly
- Prices fluctuate due to demand, events, and seasons
- Discounts are often limited for longer stays
- Additional charges creep in over time
The Serviced Home Advantage
Serviced homes typically offer:
- Fixed weekly or monthly rates
- Significant discounts for longer stays
- No surprise price increases mid-project
- Better value per person for teams
When multiple contractors are sharing one property, the cost per person drops dramatically, making serviced accommodation far more economical than booking several hotel rooms.
2. Hidden Costs Hotels Don’t Advertise
Hotels rarely show the true cost upfront.
Common Hotel Extras:
- Daily breakfast costs
- Evening meals or takeaway expenses
- Laundry services
- Parking fees
- Wi-Fi upgrades in some cases
Over a multi-week project, these extras can add hundreds — even thousands — of pounds to the total bill.
Serviced Homes Keep Costs Predictable
With serviced accommodation from Luke Stays:
- Fully equipped kitchens reduce food costs
- Laundry facilities are included
- Parking is usually free
- High-speed Wi-Fi comes as standard
For finance teams and project managers, this means clear budgeting with no nasty surprises.
3. Space: One Room vs a Proper Living Environment
A standard hotel room is designed for short stays — not weeks or months.
Hotel Living Limitations:
- One bed, one chair, one desk (if you’re lucky)
- No separation between work and rest
- Limited storage for tools or equipment
- Claustrophobic for long stays
Serviced Homes Feel Like Home
Serviced homes offer:
- Multiple bedrooms
- Separate living and dining areas
- Full kitchens
- Outdoor space in many properties
For contractors working long hours, having space to unwind, cook, and relax properly improves morale — and productivity.
4. Team Stays: The Biggest Cost Difference
This is where serviced accommodation truly outperforms hotels.
Booking Hotels for Teams
- Each contractor needs a separate room
- Costs multiply quickly
- Teams are split across different floors or hotels
- Communication becomes harder
Booking One Serviced Home
- Teams stay under one roof
- Shared costs reduce overall spend
- Better team bonding
- Easier transport logistics
For companies booking accommodation for 3, 4, or 6+ contractors, serviced homes often cost less than half the price of equivalent hotel bookings.
5. Productivity & Wellbeing: The Cost You Don’t See on Invoices
Accommodation affects performance — even if it’s not listed on a spreadsheet.
Hotel Fatigue Is Real
- Eating out every night becomes draining
- Poor sleep due to noise or lack of space
- No comfortable place to relax
- Increased burnout over long projects
Serviced Homes Support Wellbeing
- Comfortable sofas and living areas
- Quiet residential locations
- Home-cooked meals
- Better sleep routines
Happier contractors mean fewer complaints, better performance, and higher retention, all of which reduce long-term business costs.
6. Flexibility for Changing Project Timelines
Construction and infrastructure projects rarely stick perfectly to schedule.
Hotel Booking Challenges
- Limited flexibility for extensions
- Price increases at short notice
- Availability issues during busy periods
Serviced Accommodation Works With You
Luke Stays regularly supports:
- Extended stays
- Short-notice changes
- Flexible check-in and check-out
- Repeat bookings for ongoing projects
This flexibility saves time, stress, and administrative costs for project managers.
7. Location Matters: Close to Site, Not the Tourist Trail
Hotels are often located:
- In town centres
- Near tourist hotspots
- Far from actual work sites
Serviced homes are usually:
- Located near business parks and industrial areas
- Close to major road links
- Positioned for easy commuting
Reducing daily travel time also reduces fuel costs and fatigue.
8. The True Cost Comparison (Example)
Let’s compare a 4-person contractor team staying for 4 weeks:
Hotel Option:
- £110 per room x 4 rooms x 28 nights = £12,320
- Meals, parking, laundry (approx.) = £2,000+
- Total: £14,000+
Serviced Home Option:
- 4-bed serviced house (weekly rate) = £5,500–£6,500
- All utilities included
- Total savings: £7,000–£8,000
That’s money that can be reinvested elsewhere in the project.
9. Why Companies Choose Luke Stays for Contractor Accommodation
At Luke Stays, we specialise in large serviced homes designed for working professionals.
What Sets Luke Stays Apart:
- Contractor-ready properties
- Spacious layouts for teams
- Fully furnished and fully serviced
- Reliable Wi-Fi and work-friendly spaces
- Flexible booking terms
- Competitive long-stay rates
We understand contractor needs because this is what we do every day.
Conclusion: Hotels Are Familiar — Serviced Homes Are Smarter
Hotels might feel like the easy option, but when you look at:
- Total cost
- Team efficiency
- Contractor wellbeing
- Long-term flexibility
Serviced accommodation consistently delivers better value and better outcomes.
If your business regularly books accommodation for contractors, it’s time to rethink the default hotel stay.
Luke Stays offers a smarter, more cost-effective alternative — without compromising comfort.