Nevertheless, rising wages have influenced hotel offerings. Joel Rosen, president of GFI Hospitality, said a trendy restaurant helps create Buzz around a hotel, but revenue and expenses are still to come. "The Hudson is a great example. It had a flowery bar and restaurant, and to prevent the property from becoming unprofitable, they fully converted it to a cafeteria-style service environment," said Douglas Hercher, a manager at RobertDouglas, a hotel investment broker. This is the exception, not the norm that you have a full restaurant with three meals a day. "Hotel employees don`t get anything that doesn`t match the broader economy and the wage level of the lower-skilled workers," he said. Peter Wards New York Hotel and Motel Trades Council – whose Local 6 union represents bar and restaurant employees – met in 2012 with the New York Hotel Association, which represents hotel owners to negotiate a new industry-wide contract. The contract, renewed three years later until 2026, gives workers increased wage increases every year. "While expenses have increased, each hotel operator makes decisions based on a multitude of considerations, including labor, retail space costs, which can cut alternative uses in half, and changing guest preferences," the spokesman said. The city`s largest hotel, the Midtown Hilton, which has 2,000 rooms on Sixth Avenue, ended its food and beverage services in 2013 and replaced it with grab-and-go in the lobby.
(The hotel reportedly paid severance pay of more than $4 million to 43 union employees.) The number of restaurants open at the federal level fell 1 percent last spring from a year earlier to 660,755, according to market research group NPD Group. This is the lowest level in the last twelve years. "I think every hotel we`ve worked on, submitted to the union, has reduced its F&B footprint," he added. "There are a lot of hotels that approach the concept of tomb and go, mainly because of union demands." Manhattan`s restaurants were once culinary extensions of their 5-star excavations: luxurious dining experiences with an atmosphere matched with white gloves. According to hotel data tracking firm STR, food and beverage profits fell by nearly 40% in the three years that ended in 2017. To circumvent union rules, many hotels rent their land to third-party operators who are not subject to the union agreement. The restaurant industry has had its problems, even without the HTC contract. A spokesman for the Trades Council Hotel declined to take a position. *Can premium content be excluded Do you already have an account? Sign up now the Plaza Hotel at 768 Fifth Avenue and New York Hotel and Motel Trades Council President Peter Ward (Credit: Wikipedia and the Hotel Association of New York) F&B`s profits this year have fallen from more than $1,000 per available room to nearly $630 per available room – the most recent, for STR data – more than 1,000 $US per room available in 2014. .