
The hotel industry is finally rebounding from the Great Recession. The economy is modestly improving and so, business and vacationing consumers are traveling more frequently and spending more on hotel foodservice when they do. In fact, according to a recent study, hotel foodservice sales are expected to grow 2.2% annually through 2016, making lodging one of the fastest growing segments in the foodservice industry. Food & beverage has been recognized as an important contributor to a hotel's positioning within its market. A guest's experience with food & beverage plays a critical role in his or her overall hotel experience, which provides greater opportunities to enhance a property's overall performance, and to add value to the asset as well as the real estate. Though the immediate future looks bright for the hotel foodservice industry, competition is at an all-time high and operations must continually evolve to meet the demands of its customers. In order to address these concerns, some hotel ownership and management companies are creating wholly-owned restaurant companies as subsidiary divisions. Others are emphasizing the development of in-house, retail-style restaurant concepts. Still others are partnering with celebrity chefs, and some hotels are adding more food and beverage services in their public spaces. In addition, there is an increased focus on the banquet, lounge, room service and catering sectors in order to exploit their profit potential. The August issue of the Hotel Business Review will document these business developments and report on how some leading hotels are fully exploiting their Food and Beverage opportunities.