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!


team building
Building a Strong Team Culture
March 27, 2023

In any business, the importance of building a strong culture within a team cannot be overstated. A strong team culture can have a direct impact on employee engagement, productivity, and job satisfaction. For B2B companies, where teams are often responsible for managing complex client relationships, building a strong team culture can be especially important. Team […]

Read More
How the United Nation’s Global Compact Will Guide Volta’s ESG Stance
March 27, 2023

On today’s episode of the Volta Knowledge podcast, host Tyler Kern chats with Gursaran Singh, the VP of Energy Alliances with Volta Energy, about the upcoming UN global compact and how their decisions will impact and inform Volta’s ESG stance.  The global temperature is rising at an unprecedented rate. As such, discussions on the issue of climate change are held […]

Read More
business management
Investing for Success: Expert Advice on Business Management and Wealth Building
March 27, 2023

Starting a business from scratch can be a challenging but rewarding experience. To manage your business successfully, it’s essential to begin by developing a comprehensive business management plan. This plan should include your goals, target audience, products or services, marketing and sales strategies, and financial projections. It should serve as a roadmap for your […]

Read More