Hotels can no longer do without Food & Beverage

INSIGHT - With revenues under pressure, taxes rising, and customers more demanding, the traditional hotel model is reaching its limits. In this context, food and beverage is now taking on a central role in the business equation.

© GONDOLA FOODSERVICE

Tourist accommodation remains a pillar of the Belgian economy, with an estimated annual turnover of €3.2 billion and an average profitability of 6.4%, according to an analysis by Gondola Foodservice. This scope includes both accommodation-related revenue and revenue generated by food and beverage services within establishments.

But behind this economic weight, the hotel model is showing signs of weakening. In Brussels, which alone accounts for 42% of national hotel revenue, the average occupancy rate stagnated in 2025 at 70.7%, a level lower than before the health crisis. Revenue per room remained stable compared to 2024, while the average price remains lower than in 2023. In other words, inflation was absorbed without being passed on. Adding to this pressure on revenue is a tax shock, with the increase in VAT from 6% to 12%, which increases the risk of a structural loss of competitiveness for the sector. " Our businesses cannot afford this uncertainty ," Emmanuel Didion, in his dual role as director of the Martin's Agora hotel and president of the Walloon Horeca Federation, recently explained to us.

In this context, the question is no longer whether Food & Beverage is useful, but whether it can be a genuine driver of economic resilience. When managed effectively, F&B can represent up to 30% of hotel revenue. This is a far from negligible contribution at a time when room revenues are struggling to grow.

This opportunity, however, remains inextricably linked to significant operational constraints. As in the hospitality sector as a whole, establishments are facing continuously rising labor costs and increasing recruitment difficulties. Food & Beverage can therefore no longer be considered a simple service extension: it must be conceived as a controlled profit center, capable of generating revenue without disrupting the cost structure.

In this context, Conference & Banqueting activities appear as a particularly strategic lever. They allow for a significant increase in revenue per square meter while offering a high capacity to absorb fixed costs, directly contributing to the overall performance of hotels.

Beyond these primarily professional activities, the most successful establishments are also those that manage to keep pace with rapidly evolving customer expectations. Younger audiences, particularly Gen Z, are no longer satisfied with standardized offerings. They seek distinctive, local, and high-quality culinary experiences, including within the hotel industry.

As Martin Duchateau emphasized during a presentation for Gondola Foodservice, the potential of Food & Beverage is undeniable, provided that targeted, coherent concepts are developed and tailored to the intended clientele. The Made In Catherine example perfectly illustrates this approach. Developing a high-quality coffee shop offering, based on a clear selection (specialty coffee, Belgian microbrewery beers, refined Belgian aperitifs, and non-alcoholic options), attracts not only hotel guests but also tourists and local customers. The artisanal pastries, including several gluten-free options, change with the seasons, while the menu is regularly updated.

This model demonstrates that Food & Beverage can become a value driver when based on deliberate choices and rigorous operational execution. More than just a complement, it is now emerging as a strategic lever for hoteliers facing sustained pressure on their traditional revenue streams.