Dream Downtown New York
HOW IMPORTANT IS F&B IN SHAPING YOUR
BRAND IDENTITY AND DRIVING REVENUE?
At Dream Hotels, we pride ourselves on the success of
our F&B outlets, which has become synonymous with
our brand identity and generates a significant portion of
the property’s overall revenue. When people hear our
name, they automatically associate us with fun dining and
nightlife venues filled with a great crowd and energy.
For example, we are one of the first hotels in the
industry to launch a rooftop bar concept, which has done
incredibly well. At one of the roof venues in Manhattan,
we do approximately $20 million dollars a year, with
90% of that from drink sales where the margins are
significantly more profitable than food.
Another way our F&B drives revenue is to analyze
the market and program the spaces when there is less
competition. By catering to the clientele when their
options are more limited, such as Monday nights where
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we have created a very lively weekly party at one of
our restaurants, we subsequently become the go-to
destination then. This also translates into the guests
coming back during the traditionally busier times when
they have many more places to choose from because they
love the consistency of experience and service levels we
provide.
When these venues perform well, it positively impacts our
hotel revenue too. Creating a place where the locals hang
out is extremely appealing to out-of-town guests who
don’t want to be crowded with other tourists and get to
feel like a part of the local community. So not only are we
capturing their F&B dollars, but also the premium in ADR
these hotel guests are willing to pay for the convenience
of staying where they will be in their free time anyway.
This incremental revenue incurs no additional expenses
for ownership and flows directly to the bottom line, so
a strong F&B program with a great social vibe is a key
component of driving revenue overall.