Back
Currency
THB - Thai Baht
USD - U.S. Dollar
GBP - British Pound
EUR - Euro
JPY - Japanese Yen
AUD - Australian Dollar
HKD - Hong Kong Dollar
CNY - Chinese Yuan
SGD - Singapore Dollar
TWD - Taiwan Dollar
RUB - Russian Ruble
MYR - Malaysian Ringgit
INR - Indian Rupee
Note: The exchange rate shown here is for reference only.
Advisory & Transaction
Research & Consulting
Valuation
Property Management
Facilities Management
This website uses cookies to improve user experience. By using our website, you consent in accordance with our Cookie Policy.
Accept
Menu
Buy
Industrial
Factory / Warehouse / Industrial Land
Whole Building
Apartment / Serviced Apartment Building /
Office Building / Golf Course / Shophouse /
Other Investment Properties
House / Villa Project
Malton Private Residences Ari
Rent
Industrial
Factory / Warehouse / Industrial Land
Whole Building
Apartment / Serviced Apartment Building /
Office Building / Golf Course / Shophouse /
Other Investment Properties
Office
One City Centre (OCC)
Sell / LeaseProperty Search
Choose your currency
THB
Currency Settings
THB - Thai Baht
USD - U.S. Dollar
GBP - British Pound
EUR - Euro
JPY - Japanese Yen
AUD - Australian Dollar
HKD - Hong Kong Dollar
CNY - Chinese Yuan
SGD - Singapore Dollar
TWD - Taiwan Dollar
RUB - Russian Ruble
MYR - Malaysian Ringgit
INR - Indian Rupee
Note: The exchange rate shown here is for reference only.
Site Search
We are sorry. The content is not available in the selected language.
Would you like to continue?
OK
Site Search
Fill out this field.

Shifting Trends of Hotel Food and Beverage

July 23, 2021
Share
Close

With the prolonged COVID-19 situation, CBRE has investigated various transformations within Thailand’s hotel industry in regard to survival, retaining relevance, and a competitive edge within the food and beverage scene amidst the pandemic.

Historically, a hotel's food and beverage profit margin typically ranges between 25% to 40%, subject to various factors such as configuration, type, grade, number of outlets, or even concept. However, according to CBRE Research’s survey of hotels during the third wave of COVID-19 within Bangkok, we approximate that dine-ins have reduced up to 75% on average for city hotels, leading to the closure of outlets due to outstanding food costs overpowering the revenue generated within the department.

As a result, strategic adaptations have been observable in the market as hotel participation in food delivery services and the development of their own platforms have become more prevalent to target and capture a broader outreach of customers. A few examples of hotel restaurant participation are Salvia and Erawan Bakery, from Grand Hyatt Erawan Bangkok, and Akira Back and Goji Kitchen, from Bangkok Marriott Marquis Queen’s Park.

This adaptation for survival has placed hotel restaurants closer in the competitive landscape against standalone and retail counterparts. In return, they gain the opportunity to tap into unrealized revenue despite the 15-30% commission paid to delivery partnerships.

Other shifts seen in the hotel market over the pandemic period were revamped staycation incentives with ramped up hotel credit benefits to be spent on food and beverage outlets, some of which were equivalent to approximately 40 – 75% of the net room rate. Other intriguing promotions were stay-and-dine promotions, inclusive of in-room dining programs which serve multiple-course set lunches or dinner, cocktails, and signature afternoon tea sets from specialty restaurants.

In retrospect, the food and beverage outlets within a hotel, whether an all-day-dining, bar, specialty restaurant, or any other format, often convey and integrate the owner's pride and local legacy, often viewed as an amenity necessitated component essential to this asset class. Regardless of the pandemic’s impact, consistent priority and growth have been recognized within Thailand’s food and beverage space with design firms and restaurant groups, such as White Jacket, Grey Matters, and Paradigm Shift, continuing to create award-winning gastronomic and design-led new experiences for both standalone and hotel restaurants.

Key players within the real estate industry such as Asset World Corporation also show emphasis in bringing in new hotel food and beverage experiences as seen in their recently announced partnership with Nobu Hospitality, a high-profile and food-and-beverage-focused hospitality brand, or King Power’s The Standard Bangkok Mahanakhon to integrate the highly anticipated design-driven and globally recognized MOTT 32 restaurant by Maximal Concept, to be opened in Thailand later this year along with the hotel.

Taken as a whole, CBRE anticipates a certain rebound post pandemic due to people’s suppressed impulses to travel in both the international and the domestic market, in tandem with the recovery of the economy. But the real question remains at how these adapted hotel restaurants will continue to fare compared to standalone restaurants, and how the volatile industry will continue to shift as tourism returns.


An article written by Kieran Chaiyataj Chevamongkol, Analyst, Research and Consulting, CBRE Thailand for Bangkok Post dated 21 July 2021.

Back

More News

Contact Us