Boosting Non-Room Revenue Through Strategic Amenities and Partnerships
By Elsbeth Russell
Room-based revenue has long been the traditional means of hotel profitability, but in today’s dynamic landscape, it’s no longer the whole story.
The future of hospitality success lies not just in heads in beds, but in the experiences and services that engage both overnight guests and the surrounding community.
From full-service restaurants to tech-enabled, grab-and-go kiosks, savvy hoteliers are tapping into ancillary revenue streams to drive stronger margins and future-proof their business models.
Several converging forces are making it imperative for hoteliers to diversify revenue. Skyrocketing real estate, labor, and construction costs are squeezing profit margins, while traveler expectations are rising around convenience, value, and experience.
“Hoteliers must find alternative sources of revenue to make the model work,” said Gerardo Flores, chief development officer at Marco’s Pizza. “This, coupled with shifting consumer behaviors toward convenience and rising expectations around both quality and value for money, make it critical for hoteliers to stay on top of trends in order to better compete for every travel dollar.”
As a result, the industry is beginning to shift its key performance metric from revenue per available room (RevPAR) to revenue per available guest (RevPAG). The difference? RevPAG reflects a more holistic view of each guest’s value – capturing spend across all touchpoints, not just the room. Food, wellness, workspace access, parking, retail, and entertainment all factor into this broader, more resilient revenue model.
Dining as a Revenue Engine
Food and beverage is one of the most accessible and effective ways to capture more guest spend.
“Food and beverage, especially high-quality quick service, can help drive a boost in guest spend, create an amenity that attracts locals, and improve the overall guest experience,” Flores said.
This philosophy underpins how Marco’s Pizza strategically partners with hotels. Their flexible operational model – small footprint, kiosk-style setups, and cloud kitchens – makes them a natural fit in hospitality settings. Their brand’s popularity and operational support also reduce risk for hoteliers exploring non-room revenue.
From the other side of the plate, Steve Dunn, executive vice president and chief global development officer at Denny’s, a Bronze Industry Partner, points to a long-standing synergy between restaurants and hotels.
“Denny’s grew on the highways and byways of America from probably about the 60s onward, simultaneously with what happened with hotels and motels all across the United States,” he said.
This strategic co-location model helped Denny’s forge deep roots in the lodging ecosystem – especially with value brands like La Quinta and Holiday Inn. Today, more than 100 Denny’s restaurants remain directly adjacent to or connected with hotels, and the model is thriving internationally as well, particularly in tourist-heavy areas like Orlando, Las Vegas, and Hawaii.
“It’s absolutely best when we have folks that are in hotels, that are tourist-related,” Dunn explained. “Anybody who’s got leisure time, that’s a perfect fit.”
For hotel owners, this isn’t just about feeding guests – it’s about strengthening the property’s appeal and performance. Dunn elaborated: “I think having a convenient source for somebody to have access to a full-service kitchen is something that a lot of hotels just don’t have. So it’s a complement to those hoteliers when they find a full-service option that also has a value food option.”
Understanding What Guests Want
The key to unlocking ancillary revenue is knowing your guests. Are they business travelers looking for co-working space and late-night snacks? Families searching for reliable meals? Locals seeking a welcoming space?
“When it comes to understanding consumer insights, it’s important to not only listen to their feedback but also analyze their behavior,” said Flores. “Are they leaving the property for meals? Ordering delivery from off-site restaurants? These are missed opportunities.”
Fortunately, hoteliers aren’t in the dark. Major hospitality brands regularly publish guest satisfaction and behavior studies, which can guide operators in identifying service gaps and opportunities. These insights, when paired with operational data and franchise support from brands like Marco’s or Denny’s, can create a powerful blueprint for additional revenue.
Dunn added that Denny’s supports prospective partners with extensive site analysis, profit and loss projections, and an open-book franchise disclosure document. “Hoteliers can really build a strong financial understanding of whether it’s a good fit,” he said.
Flexible Footprints and Smart Partnerships
One of the main barriers to implementing new amenities is physical space. But modern service models are increasingly flexible. Many quick-service restaurants (QSR) and full-service food brands can now operate in micro-formats, shared spaces, or within existing hotel footprints.
“We can make it fit within the respective areas that they have, whether it’s a space requirement, whether we need some special design requirements,” Dunn said, “So we are very flexible when it comes to the needs of the hoteliers.”
Denny’s also brings a 24/7 model to the table, which aligns naturally with hotel operations. “We are complementary to most places because it’s not like everything shuts down at a certain time,” said Dunn. “They can get it all the time, so it really suits their travelers.”
And the incentives are real. Denny’s currently offers a $300,000 new restaurant growth incentive to help offset startup costs – what Dunn called “class-leading in the restaurant industry.”
Cleanliness: A Competitive Advantage
Beyond the food itself, there’s another less glamorous but equally critical factor: Cleanliness. According to a January 2024 survey by P&G Professional, 61 percent of Americans said cleanliness is the number one dealbreaker when it comes to choosing a restaurant – and 62 percent said the same about hotels.
Tables, plates, cutlery, linens, and bathrooms are among the most scrutinized items, with cleanliness ranked higher in importance than menu variety or affordability. This insight has powerful implications.
“Patrons value cleanliness when it comes to deciding what businesses they support,” said Dr. Juan Goncalves, leader of scientific communications for P&G Professional in North America, a Bronze Industry Partner. “So cleaning is not just a chore. It’s a competitive advantage.”
Hotels that double down on clean, well-maintained amenities – from dining areas to shared workspaces – are better positioned to win repeat business. In fact, more than half of surveyed Americans said they would return to a business that was always clean, more than those who cited discounts or convenience.
The Local Market Opportunity
Many hoteliers focus their amenity strategies exclusively on travelers, but there’s real value in engaging the local community. A branded restaurant or café can attract nearby residents, creating steady foot traffic and driving daily revenue that isn’t tied to volatile travel patterns.
“Some guests insist that the hotel have a place inside so they can eat in,” Flores noted. “And certain nationally recognized brands can help boost your chances of landing that guest versus another property.”
Marco’s Pizza has found that with pizza as their product – beloved by 90 percent of Americans and versatile enough to feed a single traveler or a whole group – they can serve both audiences seamlessly. Their model is designed to accommodate high-traffic, nontraditional spaces such as airports, universities, and, of course, hotels.
A Broader Hospitality Mindset
The future of hotel profitability lies in thinking beyond the room. Whether it’s a pizza kiosk in the lobby, a 24-hour diner next door, or a tech-enabled snack wall, amenities that serve real guest needs translate into loyalty and income.
Moreover, they insulate properties from the ups and downs of seasonal travel. “The right QSR partner doesn’t just serve food,” said Flores. “It adds value to the property and gives travelers a reason to stay on site.”
This mindset shift is gaining traction industry-wide, especially among AAHOA Members. As Dunn shared, “We’re looking to grow our direct relationship with AAHOA because AAHOA has so many folks looking to diversify. And we’re a natural fit.”
5 Smart Ways to Boost Non-Room Revenue
As hotel owners look beyond the bed to grow profitability, these five revenue-boosting strategies are proving effective across hospitality segments.
- Partner with a recognized restaurant brand. Nationally known quick-service restaurants or full-service brands bring built-in trust, foot traffic, and marketing support. Brands like Marco’s Pizza and Denny’s offer flexible formats – from kiosks to full dine-in – and appeal to both guests and locals.
- Leverage underutilized space. Have a vacant meeting room, extra land, or an unused lobby corner? Convert it into a revenue-generating feature: A grab-and-go market, coffee bar, or pop-up retail space. Smaller footprints can still deliver strong return with the right concept.
- Offer workspace amenities. With more travelers mixing business and leisure, dedicated co-working nooks or rentable meeting spaces can attract guests and locals alike. Include amenities like printers, charging stations, and quality Wi-Fi.
- Optimize for convenience. Travelers prioritize speed, value, and availability – especially late at night. Ensure your on-site amenities meet these needs with tech-enabled ordering, extended hours, and clear signage to drive traffic.
- Cleanliness is currency. According to a recent survey, 61 percent of Americans said cleanliness is a dealbreaker when choosing restaurants and hotels. Prioritize visible, consistent cleanliness to build trust and encourage repeat business.
Pro Tip: Rethink your key performance indicators. Moving from revenue per available room to revenue per available guest allows hoteliers to better measure and optimize every touchpoint in the guest experience.
Key Takeaways for Hoteliers
✓ Assess your space: Identify underutilized areas or adjacent parcels that could host food, wellness, or retail offerings.
✓ Know your guest: Use surveys, behavior data, and brand insights to understand what amenities your customers truly value.
✓ Look for flexible partners: Brands like Denny’s and Marco’s offer adaptable formats and strong support systems to simplify implementation.
✓ Prioritize cleanliness: Treat it as a competitive edge, not just a requirement.
✓ Think local: Don’t limit your amenities to travelers; attract and retain community traffic to generate consistent daily revenue.
✓ Calculate with RevPAG: Rethink success not just in room occupancy, but in total guest value.
Image: Yellow duck/stock.adobe.com
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