Skip to content

Search

Latest Stories

Blog: Hotel F&B hit hardest by COVID-19 pandemic

Room service fares the best and could see a resurgence

HOTEL F&B DEPARTMENTS have suffered profit-costing losses in the COVID-19 pandemic, according to a blog by HotStats. There could be a silver lining, though.

The pandemic-related loss of business for hotels around the U.S. cut came across the board, but conferences and leisure travel were particularly hard hit, according to the article from Laura Resco, HotStats sales and account coordinator that looks at the data’s impact on hotel profits. Conference bookings fell 20.4 percent from last year and leisure is down 14.2 percent, contributing to a 66.5 percent drop in overall F&B revenue per available room in March.


“The volume of business for U.S. hotels decreased dramatically in March: a 48.8-percentage-point contraction in occupancy compared to the same month a year ago and fueled by the cancellation of blockbuster March events such as Seattle’s Emerald City Comic Con, Austin’s South by Southwest and Miami’s Ultra Music Festival, among others,” Resco wrote.

“Typically, hotels capitalize on meetings, such as company-sponsored parties, that spin off big conferences and events to boost F&B revenue. And so, conference and banqueting revenue was the hardest hit in March, down 69 percent to $13.24 on a per-available-room basis,” the blog said.

While dine in services were almost all closed due to the coronavirus, but room service actually fell less quickly than other departments.

“Room service has been on the way out the door for some time as grab-and-go and casual dining trends have helped turn door delivery into an anachronism,” she wrote. “But is room service ripe for a comeback? As more people look to social distancing and adapt hermetic behavior when on the road, room service may become the preferred dining option for guests and recover faster than traditionally more dynamic F&B revenue streams.”

Labor costs in F&B declined 38.6 percent compared to 30.4 percent for rooms costs.

“The severe challenges to the top line led to the F&B department recording a departmental profit of -$3.19 per available room, 111.3 percent below the same month of the previous year. However, the ability of hoteliers to adapt their F&B cost structure rapidly meant that they were able to achieve a 43.9 percent departmental flex, well above the 14.2 percent recorded in the rooms department,” Resco concluded.

STR released its second P&L report last week and profits dipped more than 110 percent for that.

More for you

Trump reviewing 55 million us visas
Getty Images

Trump reviewing 55 million visas

Summary:

  • The Trump administration says it is reviewing more than 55 million visa holders.
  • Reviews cover a wide range of visas for law enforcement and overstay violations.
  • The administration also suspended worker visas for foreign commercial truck drivers.

THE TRUMP ADMINISTRATION is reviewing more than 55 million people who hold valid U.S. visas for potential violations. It is expanding a policy of “continuous vetting” that could result in revocation and deportation.

Keep ReadingShow less
Peachtree Funds Rio Las Vegas Renovations | $176M CPACE Loan
Photo credit: Hyatt Hotels Corp.

Peachtree originates retroactive CPACE loan for Rio Vegas

Summary:

  • Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
  • The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
  • The company promotes retroactive CPACE funding for commercial real estate development.

PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.

Keep ReadingShow less
Global hotel construction pipeline reaches record 15,871 projects in Q2 2025, with U.S. and Dallas leading growth
Photo Credit: iStock

Report: Global pipeline hits 15,871 projects

Summary:

  • Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
  • The U.S. leads with 6,280 projects; Dallas tops cities with 199.
  • Nearly 2,900 hotels are expected to open worldwide by the end of 2025.

THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.

Keep ReadingShow less
HAMA Launches 20th Student Case Competition in USA
Photo Credit: iStock

HAMA launches 20th student case competition

Summary:

  • HAMA is accepting submissions for its 20th annual student case competition.
  • The cases reflect a scenario HAMA members faced as owner representatives.
  • Teams must submit a financial analysis, solution and executive summary.

THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.

Keep ReadingShow less
Stonebridge hotel management expansion
Photo credit: Stonebridge Cos.

Stonebridge adds Statler Dallas to managed portfolio

Summary:

  • Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
  • The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group.
  • The property is near Main Street Garden Park, the Arts District and the Dallas World Aquarium.

STONEBRIDGE COS. HAS contracted to manage the Statler Dallas, Curio Collection by Hilton in Dallas to its managed portfolio. The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group, led by Mehrdad Moayedi.

Keep ReadingShow less