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What is the second largest source of income for a hotel?

Overall, sales of food and beverages tended to be the second largest source of revenue.



While "Rooms" (occupancy) is the primary revenue driver for any hotel, the second largest source of income is almost always Food and Beverage (F&B). In 2026, F&B services—which include on-site restaurants, bars, room service, and banqueting for weddings or conferences—can account for 25% to 40% of a full-service hotel's total revenue. In luxury resorts, this figure can be even higher. Following F&B, the "Third Pillar" of hotel income has shifted toward "Ancillary Services," which include spa treatments, parking fees, and the increasingly controversial "Resort Fees." For urban business hotels, the secondary income is often driven by MICE (Meetings, Incentives, Conferences, and Exhibitions), where the rental of meeting rooms and the associated catering packages provide high-margin returns. For budget hotels, the secondary income may come from vending, high-speed Wi-Fi upgrades, or laundry services, though these rarely match the massive scale of a well-run F&B operation.

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