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As guests’ breakfast tastes and expectations change, hotels face higher costs and new challenges, several owners and operators said.
“Guest expectations levels have really gone up, and on the select-service side of the business, they expect more,” said Fred Cerrone, president and CEO of Hotel Equities, an Atlanta-based owner and operator of 40-plus hotels. “Over the years, lower-end and budget properties have added continental breakfasts, so when guests stay at higher-end select-service hotels they expect more.” During the past 10 years, brand companies have upgraded their standards for breakfast at midscale and upper-midscale brands. Fairfield Inn & Suites was the latest brand in its segment to embrace hot food items on its breakfast program. Launched in April, the new program adds scrambled eggs, a meat item, waffles and oatmeal to Fairfield’s breakfast menu. “It was about time,” said Mitch Patel, president and CEO of Vision Hospitality Group, operator of two Fairfield hotels with two more under construction. “There’s no question it’s a very competitive business, and mid-tier is extremely competitive. Hampton (Inn) and Holiday Inn Express, as well as other brands in the segment, already offered hot breakfast so it was natural for Fairfield to do so.” Patel said 40% of properties in the Fairfield system were offering at least one hot item before the new standard took effect, “but they weren’t getting the benefit of any national marketing out of it.” Cost control Higher standards generally mean higher costs for operators. Cerrone said five years ago it cost a select-service hotel about $1.50 to $1.75 per day per occupied room to provide breakfast. Today, the cost is between $3.50 and $4 per day per occupied room. “Where costs really get out of line is when a hotel has a high group or tour and travel component with high multiple occupancies on a per-room basis,” said Mark G. Carrier, president of B.F. Saul Company Hospitality Group. “You can really get hurt because you’re not feeding one business traveler; you’re feeding a room with four teenagers in it.” Further, said Carrier, higher multiple occupancy business tends to be discounted or booked through online travel agencies. |
