LAS VEGAS—In the first part of JLL’s Hotel Restaurant Report 2025 presented at ICSC Las Vegas, the focus was on how prestige restaurants contribute to hotel profitability. This second part delves into the economic dynamics of hotel-restaurant partnerships, a growing trend that JLL identifies as transformative for the hospitality industry.
JLL highlights that luxury hotels gain substantial advantages by collaborating with renowned restaurateurs. Partnering with a celebrated chef not only elevates the hotel's status but also creates measurable economic benefits. These chefs attract significant media coverage and publicity, enhancing the hotel’s brand visibility. Their reputations draw culinary-focused travelers who may select the hotel primarily for its dining options. This association often helps hotels qualify for prestigious travel programs such as the Michelin Guide, the Virtuoso Network and the Forbes Travel Guide, which further amplify the property’s prestige and financial returns.
Such distinctive dining experiences frequently enable hotels to command higher room rates. Hotels can also combine dining with accommodation packages or offer exclusive reservation privileges to their guests. For hotels that include residential components, these restaurants serve as appealing amenities for affluent residents while providing a steady customer base for the restaurant itself.
Recommended For You
Restaurateurs also gain considerable benefits from these partnerships. With prime restaurant real estate scarce in many U.S. cities, hotels offer attractive, ready-to-use locations in desirable markets. Collaborating with a luxury hotel often raises a chef’s public profile and enhances their brand prestige. Financially, depending on the deal’s structure, chefs might face less risk and enjoy more favorable terms compared to traditional leases, where they bear full responsibility for overhead and operating costs.
High-profile collaborations are on the rise. For example, Chef José Andrés plans to open his first hotel, Bazaar House by José Andrés, in Washington, DC’s Georgetown neighborhood in 2027. This boutique hotel will include multiple restaurants, event spaces, upscale retail, and a members-only private club on the penthouse level. Chef Richard Blais is working with the Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch to overhaul the resort’s entire food and beverage program. As part of a $110 million renovation and rebranding to Grand Hyatt, he will introduce six new concepts ranging from Italian-American to Japanese fusion and Southwestern-style grill. Meanwhile, James Beard Award-winning Chef Michael Anthony, has partnered with the Waldorf Astoria New York to redesign its signature American dining experience.
Not all hotels pursue celebrity chefs, as their global fame can come with high costs. Many properties prefer local professional cooks who bring authentic regional flavors. While this group may not attract international travelers, they foster loyal local followings and strengthen the hotel’s ties to the community. Some hotels adopt a hybrid approach. The Four Seasons Hotel Philadelphia, for instance, features Jean-Georges Philadelphia by the internationally acclaimed Jean-Georges Vongerichten alongside Vernick Fish by Philadelphia’s own James Beard Award-winning Greg Vernick. This blend of global prestige and local authenticity enriches the guest experience.
Despite their advantages, hotel-restaurant partnerships face challenges. In many cities, hotel dining still suffers from a stigma of being uninspired or generic. Overcoming this requires strategic marketing and public relations efforts. Breakfast service often poses difficulties because it is typically unprofitable. Hotels sometimes subsidize labor costs to make breakfast viable for restaurateurs. Room service also presents challenges, as chefs worry that delivery times can degrade food quality. Designing streamlined menus optimized for delivery can help maintain standards.
The business relationships involved are often complex, with multiple stakeholders including the hotel brand, property owner, and operator. This complexity can slow decision-making and add bureaucracy. Nevertheless, the shared goal remains to ensure the dining experience reflects the chef’s unique vision, even amid operational intricacies.
Deal structures vary widely. Traditional leases place most risk on the restaurant operator, usually lasting 10-to-15 years, with fixed rent plus a percentage of revenue beyond a threshold. This limits the hotel’s exposure but reduces its profit potential and oversight, which can cause conflicts if expectations diverge.
Non-lease arrangements give hotels greater control but require higher upfront investment. These fall into three main types. In management agreements, the hotel owns and operates the restaurant under the chef’s name, while paying the professional cook a fee plus a share of profits or revenue. The chef typically oversees menu development, staff training, design input, quality control, and may make occasional appearances. Operating agreements have the chef running the restaurant independently, managing staff and daily operations, which suits those who are locally based and present. License agreements allow hotels to use the chef’s brand, likeness, menu, and intellectual property for a fee with limited ongoing chef involvement, common in large hotel chains with strong in-house food and beverage operations.
Regardless of the model, the ultimate aim is to deliver a seamless, high-quality dining experience that feels as curated and thoughtful as a standalone restaurant, even within the complex operations of a luxury hotel.
Check back with GlobeSt.com for more insights from the ICSC Las Vegas show floor.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
