Hotels elevate dining experience to attract more consumers

CHICAGO, May. 19, 2025 – Consumers’ unwavering appetite for dining out has fueled the food & beverage sector's resilience, outperforming many other retail categories. According to JLL’s Hotel and Restaurant Report 2025, 50% of global travelers now book restaurant reservations before their flights, signaling a dramatic shift in travel priorities. In response, hotels are elevating their dining experiences, leading to a 40% surge in positive reviews for hotel restaurants, chefs, and bars in the first half of 2024 compared to the same period in 2023. The report also highlighted that hotels with famous chef-associated restaurants charge significantly higher room rates and earn more revenue than hotels of the same class in the same market.

High-profile restaurants act as a major draw for potential guests however, it is the room that earns hotels their profits. Average gross hotel profit from food and beverage operations is 27.8%. Hotels are incorporating innovative dining experiences to attract more guests, support premium pricing for accommodations, and boost their overall food and beverage earnings. The partnership between hoteliers and restaurateurs is governed by a range of legal structures, from real estate leases to non-lease agreements. While leases grant restaurateurs greater control and risk, alternative arrangements may incur higher costs for hotels.

“Dining out has widespread appeal, which explains why food and beverage establishments have outperformed many other retail sectors in recent years,” said Naveen Jaggi, President of Retail Advisory Services, Americas, JLL. “For travelers, the experience of dining becomes even more important. Today’s consumers are seeking unique experiences that go beyond just the food itself. They’re looking for innovative concepts, locally-source ingredients, and immersive atmospheres that tell a story. As the lines between retail, hospitality, and entertainment continue to blur, food and beverage offerings are becoming central to creating vibrant, mixed-use environments that attract and retain consumers.”

Hotels featuring restaurants led by celebrity chefs or adorned with James Beard awards or Michelin stars consistently command higher room rates compared to market averages, underscoring the value of exceptional dining experiences in the hospitality sector. Properties with celebrity chef restaurants or prestigious food awards charge 8.8% more ADR (Average Daily Rate) and earn 18.6% more RevPAR (Revenue per Available Room) than the average of their peers. These findings highlight the substantial impact of acclaimed culinary experiences on hotel pricing power.

Exceptional hotel restaurants play a crucial role in the luxury travel market, with 60% of high-end travelers prioritizing accommodations featuring top-tier dining options. The symbiotic relationship between hotels and restaurants extends beyond guest satisfaction. Prestigious eateries in hotels attract publicity, draw in travelers, and offer significant economic benefits. Conversely, the scarcity of leasable restaurant space in many U.S. cities makes hotel locations an attractive option for restaurateurs. These partnerships can potentially yield lower financial risks and higher rewards compared to traditional leases, depending on the specific agreement structure with the hotel.

“We can see in JLL’s Hotel and Restaurant report how acclaimed culinary experts create buzz and media attention, while also attracting guests to the hotel property. Distinctive restaurants help hotels qualify for programs like the Michelin Guide and such, and hotels can charge higher room rates, justified by the unique experiences they offer,” said James Cook, Senior Director, Americas Retail Research, JLL. “Lack inventory of restaurant space for lease in the U.S. make hotel restaurants an appealing option in the culinary landscape.”

"In today's experience-driven retail landscape, innovative food and beverage concepts have become a powerful draw for hotels," said Emily Durham, Senior Vice President, Food & Beverage, JLL. "We are seeing exceptional dining experiences emerge as a key differentiator for properties, driving higher room rates and increased food and beverage earnings. As dining continues to be a major factor in travel decisions, we anticipate more hotels will pursue creative partnerships and leasing solutions to capitalize on the appeal of standout culinary offerings, enhancing both guest experiences and their bottom line."