As third‑party hotel management companies head into 2026, food and beverage has emerged as one of the most consequential—and challenging—components of operating model. Long viewed as a necessary amenity or a margin‑thin support function, F&B is now at the center of guest satisfaction, brand perception and financial performance.
According to the J.D. Power 2025 North America Third‑Party Hotel Management Guest Satisfaction Benchmark, guest satisfaction declined year over year in food-and-beverage quality, cleanliness, presentation and ambiance. This is occurring while more guests than ever are choosing to dine on property. The benchmark found that 77 percent of guests in branded hotels operated by the largest third‑party management companies dined at the hotel, up from 73 percent in 2024. In other words, demand is rising while satisfaction is falling.
Falling Satisfaction
Andrea Stokes, hospitality practice lead at J.D. Power, noted the Benchmark results are based on guests of branded properties managed by the largest third-party operators.
"We’re seeing declines in satisfaction for food and beverage quality and for maintenance of hotel facilities such as pools and fitness centers," Stokes told Hotel Management. "While owners and operators may be considering changing suppliers due to rising operating expenses, this can impact guest satisfaction."
2025 saw a significant year-over-year increase in the proportion of guests who ate a meal at the hotel, Stokes said. This is driven by a slight increase in the proportion of these guests eating breakfast at the hotel.
The Third-party Hotel Management Guest Satisfaction Benchmark satisfaction rating for F&B quality/taste declined in 2025 year over year. In fact, among guests who experienced a problem with the hotel during the stay, food-related problems were mentioned 35 percent of the time.
The use of room service in full-service hotels (luxury and upper upscale) among these guests is on the rise over the past few years. Currently 27 percent of luxury or upper upscale guests used room service during the stay.
The use of the hotel bar in full-service hotels among these guests is on the rise over the past few years with 42 percent of luxury or upper upscale guests currently partake of the hotel bar.
What's Ahead
In 2026, F&B will rise as a key driver of ancillary spend. On the revenue side, dining outlets increasingly serve as extensions of the hotel brand and key elements driving additional spend. With more guests choosing to eat on property, underperforming F&B programs represent lost revenue opportunities and diminished total spend per stay. In urban and resort markets, they can also limit a hotel’s ability to attract local patrons, further capping potential upside.
From a cost perspective, food and beverage is where margin pressure is most acute. Labor inflation, supply volatility and utility costs have forced many operators to reevaluate menus, service models and sourcing strategies. The J.D. Power data suggests that when cost‑cutting measures are visible to guests—through reduced quality, cleanliness, or ambiance—satisfaction suffers quickly.
F&B also plays an outsized role in how guests perceive the overall condition of a hotel. The same benchmark found significant declines in satisfaction related to facilities maintenance, including pools and fitness centers. Together, these findings suggest guests are increasingly sensitive to how well hotels maintain shared, experiential spaces.
Looking ahead, successful third‑party management companies in 2026 will treat F&B as a strategic function.
To see Hotel Management's 2026 Top Third-Party Management Companies list, click here.
This article was originally published in the February/March edition of Hotel Management magazine. Subscribe here.