Hotel phone systems are being replaced across Ontario as carriers retire copper lines and older PBXs reach end of support. The first question owners ask is what a new system will cost. The answer depends on three choices: cloud or on-premise, whether you keep your existing room phones, and how you connect to the phone network.
All figures below are planning estimates in CAD before HST. Your quote depends on room count, existing wiring and the features you need.
The Three Main Options
| Option | How it works | Best for |
|---|---|---|
| On-premise IP PBX | A PBX on site (for example, a Grandstream UCM) connected to SIP trunks, with gateways for analog room phones | Most limited- and select-service hotels; keeps existing room phones and wiring |
| Cloud PBX | The phone system runs in the provider’s cloud; phones connect over your network | Properties with good networking and in-room data cabling, or that want no on-site hardware |
| Hybrid | Cloud or hosted service with an on-site gateway for analog room phones | Hotels moving to cloud while keeping existing room phones |
For a deeper comparison, see cloud PBX vs on-premise for hotels.
One-Time Costs
| Item | Typical range (CAD) | Notes |
|---|---|---|
| IP PBX hardware | Roughly $800 to $3,000 | Not needed with a pure cloud PBX |
| Analog (FXS) gateway | Roughly $1,500 to $3,500 per 48 ports | Lets you keep existing analog room phones and wiring |
| Room phones (if replacing) | Roughly $30 to $100 each analog; more for IP or cordless | Hospitality models include message lights and guest service keys |
| Front desk and back-office IP phones | Roughly $100 to $400 each | Depends on display, number of lines and sidecars |
| PMS interface | Varies by PMS and phone system | Enables wake-up calls, room status, check-in/check-out phone control and call charges |
| Installation, programming and number porting | Varies with room count and complexity | Includes call flows, voicemail, wake-up calls and testing |
Monthly Costs
- Phone lines (SIP trunks): per-minute or flat-rate plans. Hotels with modest outbound calling often save on per-minute plans.
- Phone numbers (DIDs): usually a few dollars per number per month.
- Fax: VoIP fax services that send and receive faxes by email, replacing a dedicated fax line.
- Cloud PBX licences: per-extension or per-room pricing if you choose cloud.
- Managed voice support: monitoring, moves, adds and changes, and someone to call, typically a predictable flat monthly fee.
Example: A 75-Room Hotel Keeping Its Room Phones
A typical limited-service hotel with existing analog room phones might install an on-premise IP PBX, two 48-port analog gateways, three or four IP phones at the front desk and back office, and SIP trunks with VoIP fax. That kind of project often lands somewhere around $7,000 to $16,000 one-time, plus monthly trunk, number and support costs. Replacing every room phone, or adding a PMS interface, adds to that.
Compared with paying for a bundle of copper business lines every month, many hotels find the monthly saving pays back much of the project over a few years, and they are no longer exposed to copper retirement. See what copper retirement means for hotels.
Costs Owners Forget
- Emergency calling: 911 calls from guest rooms must deliver the correct location to emergency services. Confirm how your provider and system handle this.
- Network readiness: VoIP needs a reliable network with voice prioritized. See hotel network design.
- Power backup: UPS units so phones work during short power cuts.
- Backup internet so the phones stay up if the main connection fails. See backup internet for hotels.
- Elevator, fire panel and alarm lines that may still need a compatible line or communicator.
Real Example
A 64-room franchise hotel in Halton Hills moved from copper lines to VoIP with VoIP fax and now has one provider for phones, WiFi and IT. Read the case study.
Frequently Asked Questions
How much does a hotel phone system cost?
For a typical 50- to 100-room limited-service hotel, a new IP phone system that keeps existing analog room phones often costs in the high four to low five figures one-time, plus monthly fees for lines, numbers and support. Full room phone replacement and PMS integration add to the cost.
Can we keep our existing room phones?
Usually, yes. Analog gateways connect existing room phones and wiring to a modern IP phone system, which avoids replacing every handset and rewiring rooms.
Is cloud or on-premise cheaper for a hotel?
It depends. On-premise systems have higher upfront cost and lower monthly cost; cloud systems have lower upfront cost and ongoing licence fees. For hotels keeping analog room phones, on-premise or hybrid is often the most economical.
Can VoIP handle our fax?
Yes. VoIP fax services send and receive faxes by email, so you no longer need a dedicated copper fax line.
Will the phones work with our PMS?
Most modern hotel phone systems support PMS interfaces for wake-up calls, room status and check-in/check-out. Confirm compatibility with your specific PMS before you buy.
Talk to AutoSecure
Replacing a copper or end-of-life phone system? AutoSecure designs, installs and manages hotel VoIP and PBX systems across Ontario, with PMS integration. Call 226-476-3358 or book a free hotel technology assessment.
See also: how hotel wake-up call systems work and what to test before go-live.