Hotel owners say breakfast can cost 5% to 7% of revenue when labor is included
Free hotel breakfast, a hallmark of the hospitality industry, is slowly vanishing under pressure as operators battle thin margins.
Brands such as Hyatt Hotels have removed the complimentary morning food spread for 40 properties, while IHG-owned Holiday Inn cut its a la carte breakfast and shifted to buffet-only service to save labor and food waste.
Hotel owners say breakfast can cost 5% to 7% of revenue when labor is included.
However, most travelers expect free breakfast. According to the 2025 JD Power North America Hotel Guest Satisfaction Study, 78% of travelers who eat on property choose breakfast, and nearly half in midscale brands call it a need-to-have.
Many mid-tier brands argue that free breakfast drives loyalty and remains central to the travel experience.
Executives at Marriott International say luxury travel remains strong in today’s K-shaped economy, where higher-income people lead spending. Several Marriott locations have eliminated breakfast.