Restaurants Are More Important to Hotels Than Ever Before

Although food and beverage prices continue to rise, restaurants continue to be a significant source of revenue for hotels. Restaurants have always been an attractive amenity for hotel guests but with so many travelers wanting a more holistic experience today, restaurants have become a point of emphasis.

According to Hotel Management, “banquets and catering are the primary drivers for hotel programs, accounting for nearly 40 cents out of every dollar spent at hotels. Banquets and catering account for an even larger part of the overall revenue at upscale and luxury properties that cater to both personal and business events.”

That is just banquets and catering, not including the revenues from patrons getting room service or, more significantly, coming down to visit the restaurant itself.

Given the increasing popularity of Airbnb, this is good news for the hotel business. The average Airbnb host provides a bed, but typically not breakfast, let alone its own restaurant. This may be one of the reasons it does not seem to be having any actual effect on hotel revenues, even as the number of people renting through Airbnb is increasing. The presence of a restaurant can act as a draw for hotels feeling the pressure of a changing economic environment. It can provide a draw for events that need to be catered, such as conferences, weddings, or receptions—events which attract people to stay at the hotel itself.

For hotels to continue to complete, though, they will need to begin catering to the new demands emerging throughout the marketplace. Organic offerings, paying attention to food allergies, and especially providing local tastes are all ways to bring people in. Upscale dining seems to be a major draw at hotels, rather than more casual dining. The key is to provide patrons with an experience they cannot get anyplace else when they come to a given city.

The bottom line is that hotels with restaurants actually do very well. They are a major source of revenue, and they are likely helping to keep hotels competitive as the industry continues to evolve in the face of ongoing technological innovation.

Follow us on social media for the latest updates in B2B!



Listen Carefully, Respond Creatively
April 12, 2024

In this captivating episode of the Fans First series, Jesse Cole, the mastermind behind the Savannah Bananas, delves into the transformative business philosophy of “listen carefully, respond creatively.” This approach has not only skyrocketed the Savannah Bananas to fame but also serves as a universal blueprint for revolutionizing customer service and engagement across all sectors. […]

Read More
Stacey Childress, Senior Advisor at McKinsey and Company, discusses higher ed
Bold Measures are Needed to Improve Investment in Higher Education
April 12, 2024

The stakes for higher education have never been higher as the educational landscape sees rapid evolution. As universities and colleges grapple with the dual challenges of technological disruption and increasing demands for accessible, quality education, the question of how best to implement investment in higher education becomes a priority. This debate has been ignited […]

Read More
wake up healthy
Hey, it’s 9 am… Wake up Healthy with 9amHealth!
April 12, 2024

Healthcare Rethink host Brian Urban explores ways to wake up healthy and stay healthy with his guest, Dr. Avantika Waring, MD, the Chief Medical Officer, at 9amHealth. This episode delves into the transformative approach to healthcare delivery championed by 9amHealth. Dr. Waring’s journey from a humanities student with a love for French to a […]

Read More
public safety and security
Strengthen Public Safety and Security: Modernize Radio Communication for Better Field Response
April 11, 2024

The importance of radio communication within public safety and security operations remains unbeaten in an era dominated by digital transformation. This medium, essential for over a century, continues to be the lifeline for responders on the front lines. From ensuring the safety of field agents to facilitating real-time critical information flow and enhancing situational […]

Read More