LAS VEGAS—Prestige dining has evolved beyond simply offering fine meals; it has become a crucial growth strategy for high-end hotels. This was the central theme presented by JLL at its media breakfast during ICSC Las Vegas, where the company introduced its Hotel Restaurant Report 2025.
James Cook, JLL’s senior director of Americas Retail Research, explained that hotels increasingly focus on elevating their dining experiences to attract more guests. Luxury hotels that feature top-tier restaurants—often led by celebrity chefs or recognized with prestigious awards—are seeing significant benefits, including an 8.8% higher average daily rate and an 18.6% increase in revenue per available room compared to the average luxury property.
According to JLL, these elite restaurants have become essential experience drivers, fundamentally changing how luxury hotels attract guests and generate revenue. Modern travelers are seeking more than just a place to stay; they crave memorable experiences, and food is now central to that pursuit.
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The report opens by highlighting the widespread appeal of dining out. Drawing on data from the National Restaurant Association, JLL noted that 90% of consumers enjoy restaurant dining and 64% of full-service diners prioritize the experience over the price. U.S. Census Bureau data further underscores this trend: Americans now spend $128 dining out for every $100 spent at grocery stores, reflecting the increasing experiential value of restaurant visits.
This desire for unique culinary experiences intensifies during travel. The report reveals that half of global travelers make restaurant reservations before booking their flights, and nearly 60% of luxury travelers choose hotels based on dining options. Notably, one in five consumers now travels specifically to explore new food destinations.
Hotels are responding to this shift. JLL’s analysis found a 40% increase in positive online reviews mentioning hotel restaurants, chefs and bars from the first half of 2023 to the first half of 2024. As hotels rely more on non-room revenue streams, upscale dining has become both a powerful guest magnet and a valuable financial asset.
A key takeaway from the report is that hotels with prestige restaurants outperform their competitors, commanding higher room rates and delivering stronger RevPAR. Big-name chefs are a major factor in this trend. Hotels are forging partnerships with culinary stars to distinguish themselves and attract guests. For example, Gordon Ramsay’s Hell’s Kitchen opened its third U.S. location at Harrah’s Resort Southern California in 2022, securing over 25,000 reservations before opening. Similarly, José Andrés brought his acclaimed Mediterranean restaurant Zaytinya to the Ritz-Carlton New York Nomad and the Ritz-Carlton South Beach.
These restaurants offer more than just exceptional food; they provide cultural cachet and allow hotels to justify premium room pricing. Nevertheless, the core business for hotels remains the room itself. While celebrated hotel restaurants attract attention, the resulting increase in occupancy and room rates ultimately drives profitability. The report notes that food and beverage operations deliver a robust 27.8% gross profit margin. Still, hotel rooms account for most returns, with 72.9% of room revenue converting to gross profit. In essence, restaurants are vital guest attractors, enabling hotels to charge more for rooms, boost occupancy, and enhance overall profitability.
Check back soon with GlobeSt.com for part 2 of this story and further insights from the ICSC show floor. Also, check out the stories below you might have missed.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
