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!


Do You Know Where Your Instruments Are? How Surgical Instrument Marking Can Improve Your Perioperative feat. Bill Camargo and Jennifer Bingaman
June 28, 2022
Ahead of any surgical procedure or operation is the preparation of surgical instruments. In the latest episode of the podcast “ConCensis,” host Tyler Kern discussed the ins and outs of how Censis utilizes its Read more
Gossip About Gossip: Connecting Athletes Directly with Their Fans
June 28, 2022
Who is the human being behind the media-hyped athlete? How can athletes connect with fans in a safe, positive environment? Attempting to close these gaps is REVEL Moments, a live, unscripted, and safe two-way Read more
IC System Named a 2022 Star Tribune Top 200 Workplace
June 28, 2022
St. Paul, MN – The Minneapolis Star Tribune has named IC System one of Minnesota’s Top 200 Workplaces. Minnesota employees were surveyed about their employers, and 200 businesses across the state were selected. Read more