F&B Performance in the United States Hotel Industry

Authors

Michael S. Lin, Penn State University
InHaeng N. Jung, Penn State University
Amit Sharma, Penn State University

Type of Submission

Refereed Article

Abstract

Competitive environments warrant otels to diversity products and services. Diversification is necessary to reduce the risks associated with revenues and profitability. This study explored whether food and beverage (F&B) activities have the potential to create a diversification of revenue sources for hotel businesses. Using STR hotel performance data from 2007 to 2016, the study conducted panel regression analyses and time trend analyses in the pre- and post-2008 recession period to investigate the impact of diversifying revenue and profit sources through F&B activities. Results indicate that F&B activities can be a source of diversification for upper upscale hotels. Results further suggest that F&B was a supplementary income source at the beginning of the recovery phase of the last recession. Theoretical contributions and managerial implications are discussed.

DOI

https://doi.org/10.7275/rrkm-bd90

Recommended Citation

Lin, Michael S.; Jung, InHaeng N.; and Sharma, Amit (2020) "F&B Performance in the United States Hotel Industry," Journal of Hospitality Financial Management: Vol. 28: Iss. 1, Article 3.
DOI: https://doi.org/10.7275/rrkm-bd90
Available at: https://scholarworks.umass.edu/jhfm/vol28/iss1/3