When it comes to maximizing revenue in hospitality, RevPAR (Revenue Per Available Room) has always been king. But there are other dollars waiting to be spent. Starting in 2017, we began to see food and beverage getting more share in the hotel and resort revenue mix. One important correlation points to a stronger emphasis on the surrounding neighborhood and providing new, convenient experiences to those locals. Some properties are successful attracting a strong mix, catering to both locals and guests equally well.
In a recent Hotel News Now article, food and beverage managers are placing more emphasis on unique F&B approaches that include revamped room service options, comfortable lobby bars and lounge areas that attract guests and locals alike, and grab-and-go concepts with menu items that cater to busy business professionals.
With the creative use of flexible space, for example the hot trend of communal areas designed into existing lobbies, it gives hotel and resort operators more opportunity to grow revenue from F&B. According to the news story, such innovation has already sparked performance gains. Total F&B Revenue per Occupied Room (RevPOR) was up 3.6% for 2018 year-to-date through June, compared to the same period last year. Revenue per available seat for restaurants and bars increased 4.9% in the same period. Another way operators are making better use of existing lobby space by selling light fare between breakfast and lunch to bring in additional F&B revenue.
New space concepts in hotel lobbies are one of the latest trends, often used to develop an edge over similar buildings in the area. Modernizing an otherwise stark hotel lobby is an investment that doesn’t have to break the bank. Bringing in self-serve technology to accommodate grab-n-go concepts or guest ordering can help make a difference while driving F&B revenue.