F&B affects RevPAR?

One of the thorniest dilemmas in hotel operations is how many F&B Outlets are required and then how to run and manage them, since Food and beverage could either be a boost to a hotel’s credibility or a potential cash drain.

Restaurants must add to the overall value of the hotel, and thus average daily rate, even if they are not a runaway success as stand-alone offerings. Today, restaurants are changing their concepts and becoming as popular with locals as they are with guests, and that never used to be the case. The most important focus for hotel F&B is to make any restaurant or bar a destination in its own right and to give employees the level of expertise they need to succeed.

It’s difficult to be specific on what (a restaurant) brings to (revenue per available room), but it is about brand value and allure. On some days, you may only have a few residents eating in the restaurant, but if the restaurant adds to the hotel’s allure and RevPAR, it may yet be worth it. After all, it may be a qualitative process, not a quantitative one. What is critical is to have differentiation, and that does not only mean going upscale. Have experiences to sell. You could put street food into a hotel if it seems right, and even if it does not make profit, it will add to the hotel’s brand value.

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