U.S. hoteliers are struggling to extend revenues in 2025, as rooms income (the biggest income for lodges) elevated by simply .8 % throughout the first half of the yr, based on CBRE’s August 2025 version of Lodge Horizons. Given the anticipated slowdown in U.S. lodging efficiency throughout the second half of 2025, CBRE’s forecast for the annual progress in RevPAR is simply .1 %. Due to the softer outlook for rooms income for 2025, hoteliers have targeted on different sources of revenue to develop resort revenues. One of many main sources of ancillary income has been the meals and beverage division, traditionally the second-largest income within the trade.
To investigate why meals and beverage revenues have been a vibrant spot amidst declining total efficiency, we now have analyzed the working statements of two,669 U.S. full-service, resort, and conference lodges that participated in CBRE’s annual Traits within the Lodge Trade survey in each 2023 and 2024. To supply extra present data, we relied on the month-to-month working statements of 866 properties throughout the interval January by way of June of 2025.
Income Traits
Since most resort meals and beverage patrons are in-house company, we analyzed income tendencies on a dollar-per-occupied room (POR) foundation. Through the first six months of 2025, F&B income POR for the lodges in our survey pattern elevated by 3.8 %, exceeding the three % improve in whole resort income throughout the identical interval.
When analyzing the expansion in F&B income POR by property sort and chain scale, vital will increase throughout the first half of 2025 have been noticed at luxurious and resort lodges. These properties have benefited from the relative power of the leisure and bleisure demand segments because the pandemic, in addition to the monetary stability of high-income households.
Properties are additionally harvesting the advantages of a post-COVID resurgence in resort F&B demand, the place resort eating places had been deemed safer areas. Elevated curiosity led to the hospitality trade investing in and specializing in meals and beverage, as operators and types launched extra inventive choices, personalization, and enhanced engagement. Possession targeted and invested in revitalizing underutilized venues, bars, and open areas, and these investments in additional fashionable ideas had been very nicely acquired by each in-house and exterior patrons.
Lodge redevelopments and renovations accomplished in the previous few years included extra activated meals and beverage actual property, in lots of instances blurring the traces between foyer lounges, retail, and leisure. House owners shared their intentional monetary targets for these investments with operators and have been intently measuring the ROI of those tasks. This created transparency between the operator and possession, and finally inspired F&B groups to make extra accountable and knowledgeable selections that contribute positively to the underside line.
Refurbished bodily areas, elevated culinary packages, the utilization of knowledge to drive flooring choices, and an total extra subtle deal with F&B operations additionally gave operations the boldness to extend costs. Given the very restricted progress in occupancy for the properties in our pattern, the rise in F&B income on a POR foundation may be attributable to will increase in costs and seize of exterior patrons.
Luxurious resorts have loved features in F&B income, however conference lodges have struggled in 2025. After benefiting from the restoration of group demand in 2023 and 2024, occupancy ranges for conference lodges have declined in 2025. Whereas banquet income has declined at conference lodges by 7.3 %, it has elevated at resort lodges by 8.7 %. This might point out a choice of teams to host their assembly at resort properties, particularly throughout the offseason, when room charges may be extra favorable.
This development can be attributed to the several types of guests that resorts and conference lodges appeal to. There was a lower within the attendance and participation of presidency and federal staff in associations, conferences, and conferences. Organizations that depend on authorities funding had been affected by new federal insurance policies, price range reductions, and workforce shifts, leading to diminished conferences and occasions. Then again, the social and wedding ceremony group enterprise continues to thrive.
Meals income in each resort venues (5.2 %) and banquet areas (4 %) has elevated in 2025. Sadly, the development of declining beverage revenues has carried over into the yr. From the primary half of 2024 to the primary half of 2025, beverage revenues have been flat in resort venues however declined by 2 % at resort banquets.
Conscious consuming has led to the emergence of two new beverage classes—low-alcohol choices and mocktail options. For instance, one resort in our pattern has reinvented the Shirley Temple, which has been successful for his or her brunch providing. Cocktail menus that had been traditionally restricted to adults at the moment are creatively providing mocktails for the complete household.
Whereas minibars have registered the best proportion improve in income from 2024 to 2025, they nonetheless symbolize simply .2 % of whole F&B division income. Different minor sources of F&B division income exhibiting robust progress in 2025 are public room rental (9.5 %) and repair costs (7.9 %), two objects which have been thought of “negotiable” prices for assembly and occasion planners, traditionally. Given the comparatively robust progress charges in these two classes, it’s clear that resort catering and assembly gross sales managers have been extra diligent in imposing these as necessary costs in 2025.
Bills and Earnings
Not solely have F&B departments contributed extra income for the lodges in our pattern, however they’ve additionally improved the profitability of the properties. The year-to-date F&B division revenue margins for resort F&B departments have elevated from 28.7 % throughout the first half of 2024 to 29.1 % within the first half of 2025. This suggests that bills have elevated at a slower tempo than revenues.
The first price classes inside a resort F&B division are the price of items bought (i.e., meals price, beverage price), labor bills (i.e., salaries, wages, advantages), and different bills (e.g., china, silverware, linens, gear, decorations, menus). As a proportion of whole F&B division bills, labor is the best (59.4 %), adopted by the price of items bought (24 %) and different (16.6 %).
Of those three expense classes, the best proportion improve in 2025 has been within the different class (17.3 %). Labor bills have risen by 2.1 %, whereas the price of items bought rose by 3.3 %. Tempering the rise in the price of items bought has been a discount in the price of drinks, which is commensurate with the decline in beverage revenues. Muting the rise in whole labor expenditures is a mix of changes to F&B service supply (extra buffets and grab-and-go), in addition to the continued problem of discovering staff, leading to staffing shortages.
From an asset administration perspective, occupancy bills have to be included to know the true profitability of an outlet and its meals and beverage operations. These bills, which embrace repairs and upkeep, utilities, actual property taxes, insurance coverage, and administration charges, are reliable prices related to culinary areas. We will all the time analyze that well-positioned and profitable F&B shops have a tangible halo impact on charges, however holding operations accountable begins with a good evaluation of the profitability of every part as a standalone enterprise.
Greatest Practices to Drive Income
Resorts mustn’t deal with providing F&B bargains to draw patrons; as a substitute, they need to lean on their well-thought-out ideas, high quality of implementation, fame administration, and repair supply to generate demand. Effectively-run F&B resort shops needs to be confidently competing with native standalone eating places.
Producing extra income requires exhausting work. Widespread parts of profitable operations embrace: delivering an enhanced client expertise, a severe strategy to menu optimization, high quality expertise, and efficient advertising. Administration should make sure that restaurant groups perceive the every day, month-to-month, and annual targets for every outlet. Key positions needs to be assigned particular income targets, take part in custom-made upselling coaching programs, and make sure that acceptable incentives are in place to maintain personnel motivated and engaged. Relying in the marketplace and sort of resort, creating an F&B advertising and gross sales supervisor place could also be a wise strategy.
