In the battle for guest spend, food and beverage (F&B) has long been a staple revenue driver for hotels. But in today’s hyperlocal, hyper-competitive dining landscape, hotel restaurants face a critical question: are they simply coping or truly competing?

Evolving consumer expectations, rising operating costs, and intensifying pressure to optimise every square metre are prompting a strategic re-evaluation. In Southeast Asia for example, F&B expenses per available room have increased by 3.1% Y-o-Y in 2024, according to HotStats.

In the meantime, travellers now seek distinctive, destination-worthy dining experiences. Owners are demanding stronger revenue performance. And many traditional hotel F&B models, especially all-day dining (ADD), are struggling to stay relevant.

Too many hotel restaurants still operate in ‘coping’ mode: reducing service hours, cutting menus, and running lean teams just to get by. While these measures may contain losses in the short term, they are rarely a long-term solution.

Others, however, are choosing to compete, intentionally and creatively. They are investing in distinctive concept that appeal to guests and locals alike. They are rethinking operations, embracing flexibility, and treating F&B not as a sideline, but as a brand signature.

The future likely belongs to this second group.

Hotels that regard F&B as a strategic differentiator — one that shapes guest perception, drives local engagement, and strengthens the asset narrative — will be better positioned to compete, and win, in today’s fast-changing landscape.

JLL’s Hotel Operators Sentiment Survey 2025/2026 report will be available online in September 2025.