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Robert Mandelbaum and Andrea Grigg

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  • 6 min

A Bright Spot in 2025: F&B Revenues Rise Amid Overall Slowdown in Hotel Performance 

  • Robert Mandelbaum and Andrea Grigg
  • 7 November 2025
📈 In 2025, U.S. hotel room revenue rose by just 0.8% in H1, with RevPAR growth expected at 0.1%. F&B revenue per occupied room surged by 3.8%, driven by luxury and resort hotels. Convention hotels saw a banquet revenue drop of 7.3%, while it rose 8.7% at resorts. Beverage revenue dipped, with mocktails gaining popularity. F&B profit margins increased to 29.1% from 28.7%. Labor costs (59.4%) led F&B expenses, with a 2.1% rise, while other expenses jumped 17.3%.
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  • 6 min

All Eyes on Operating Costs: Lessons Learned in 2024 and Cost-Control Advice for 2025 

  • Robert Mandelbaum and Andrea Grigg
  • 30 May 2025
💸 Hotel profit margins declined in 2023-2024 due to rising expenses. CBRE forecasts this trend will continue in 2025. In 2024, hotel operating expenses increased by 4.1% above GOP and 3.6% below GOP, exceeding a 2.3% revenue increase. Labor costs rose by 4.8%, and insurance premiums by 17.4%. Property tax payments increased by 4.3%. Management fees grew by 1.1%. A sample of 2,600 U.S. hotels indicates cost control is crucial for profitability.
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