Post-Covid hotel F&B trends
The Covid impacts on the global lodging industry have been innumerable.
From reopening with understaffed hotels to rising F&B and energy costs, few hotels has been immune.
Companies have been forced to reign in costs and try new creative ways to attract workers.
New F&B trends since the Covid recovery period include reductions in in-room dining and more streamlined menus. It has also led to cutting all-day dining service. What has increased is informal grab-and-go venues.
These and more findings are detailed in CBRE’s Trends in the Hotel Industry study in 2021 and 2022.
The 2,500 properties studied averaged 64.7% occupancy with an ADR of $225.60.
Revenue Trends
Based on a dollar-per-occupied room (POR) basis, F&B revenues for the hotels increased over 50.2%.
In comparison, total hotel revenue for these hotels increased 24%.
There were notable increases in profitability percentages across operations, with beverage venue revenues, public-room rentals, audiovisual all seeing strong performances.
The uptick in bars and lounges, can be attributed to the growing popularity of specialty cocktails or craft beer selections plus utilising rooftop spaces into bars.
Meanwhile, public-room rentals saw substantial growth too.
Still, the report found declines in earnings from in-room dining and minibars in 2022.
This is partly down to social distancing measure and less staff-guest interaction. This was replaced by grab-and-go options.
Many hotels have chosen to remove minibars from guestrooms altogether.
Overall from 2021 to 2022, the biggest F&B revenue gains were by full-service, convention, and upper-upscale hotels.
These hotels were able to benefit from the initial recovery phase of group and corporate travel demand.
Luxury hotels struggled most to boost F&B revenue in 2023, which aligns with their inability to significantly raise room rates. The continued double-digit growth in 2021 and 2022 proved unsustainable in 2023.
From 2021 to 2022, total F&B expenses at the studied hotels increased by a huge 82.3%.
This is driven by increased salaries, wages, and employee benefits.
Between 2021 and 2022, total labour costs surged by 85.9%.
To compound this, operating efficiencies have dropped so far in 2023 on average.
At June year-to-date, F&B profit margins have fallen slightly, while department profit margins have declined for all property types.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists