bar service .
• The conversion of food and beverage space to other revenue generating purposes .
To learn how these recent changes in hotel food and beverage operations have impacted revenues and expenses , we have analyzed the operating statements of 2,500 U . S . full-service , resort , and convention hotels that participated in CBRE ’ s annual Trends ® in the Hotel Industry in 2021 and 2022 . In 2022 , these 2,500 properties averaged 285 rooms in size , and achieved an occupancy of 64.7 %, along with an average daily rate ( ADR ) of $ 225.60 . To provide more current information , we also relied on the monthly operating statements of 1,200 properties during the period January through June of 2023 .
REVENUE TRENDS Since the majority of hotel food and beverage patrons come from in-house guests , it is appropriate to analyze revenue trends on a dollar-per-occupied room ( POR ) basis . From 2021 to 2022 , total hotel F & B revenues POR for the hotels in the study sample increased by 50.2 %. For comparative purposes , total hotel revenue for the same hotels increased 24.0 % POR . This is consistent with the delay in the recovery of revenues linked to group demand ( e . g . catering and banquet revenue ) during 2021 .
F & B revenue sources exhibiting the greatest POR percentage increases during 2022 were beverage venue revenues , public-room rental , audio-visual ( A / V ) revenue and mandatory service charges . The rise in beverage venue revenues ( bars and lounges ) is consistent with the increased popularity of specialty cocktails and craft beers , along with the conversion of rooftop spaces to bars . Public room-rental and A / V revenue gains are the result of the initial stages of the recovery of conventions and meetings . The increase in servicecharge revenue is reflective of the increased implementation of mandatory surcharges
FOOD AND BEVERAGE REVENUES
Dollars Per Occupied Room - Change 2021 to 2022 – By Revenue Source
Total F & B Revenue
CBRE HOTELS
Venue - Food Venue - Beverage
Banquet - Food Banquet - Beverage
In-Room Dining Mini Bar
Public Room Rental A / V
Service Charges Other
-21.4 % -4.4 %
13.0 %
10.9 % 18.5 %
Source : CBRE Hotels Research , Trends ® in the Hotel Industry , Sample of 2,500 properties with F & B Departments
within hotel F & B outlets to offset the rising costs of operations . This is similar to the increase in hotel resort fees as a supplement to rooms revenue .
On the downside , we observed reductions in the amount of revenue earned on a POR basis from in-room dining and minibars during 2022 . Social distancing requirements forced hotels to limit guest interaction within the guest room . Accordingly , the extent of in-room dining service has been reduced and replaced with the increased use of graband-go operations . In addition , hotels have frequently removed mini-bars from
1
42.8 %
50.2 %
52.8 %
100.2 %
114.9 %
131.0 %
-40 % -20 % 0 % 20 % 40 % 60 % 80 % 100 % 120 % 140 %
TOTAL FOOD AND BEVERAGE REVENUE
Dollars Per Occupied Room - Annual Change By Property Type and Chain-Scale
CBRE HOTELS
All Hotels
Full-Service Hotels Convention Hotels
Resort Hotels
Luxury Upper-Upscale
Upscale Upper-Midscale / Midscale
4.8 %
3.2 %
11.3 %
10.3 % 12.0 %
13.3 % 17.8 %
Source : CBRE Hotels Research , Trends ® in the Hotel Industry , Sample of 2,500 properties with F & B Departments
2
31.4 %
31.4 %
38.4 % 38.9 %
42.2 %
50.2 %
55.3 %
54.2 %
67.5 %
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 %
guest rooms in favor of providing minirefrigerators for guest use .
When analyzing changes in food and beverage revenue by property type and chain-scale , we see consistency with recent changes in hotel demand . From 2021 to 2022 , the greatest F & B revenue POR gains were achieved by full-service , convention and upper-upscale hotels . In general , full-service , convention and upper-upscale hotels benefited the most in 2022 from the initial stages of the recovery of group and corporate demand .
In 2023 , we have seen a slowdown in total F & B revenue growth . From January
Jan / Feb 2024 hotelsmag . com 33