A Study on Profitability Analysis of Different Revenue Streams in a Hotel: Rooms, Food and Beverage (F&B), and Events

A Study on Profitability Analysis of Different Revenue Streams in a Hotel: Rooms, Food and Beverage (F&B), and Events

Dr Amrita Bhattacharya, Associate Professor, amrita.bhattacharya@nshm.com, NSHM Durgapur

Ayan Chattoraj, Assistant Professor, ayan.chattoraj@nshm.com, NSHM Durgapur

Pakhi Shaw, MBA student, pakhishaw.23@nshm.edu.in ,NSHM Durgapur

Abstract

This study investigates the profitability of key revenue streams in the hotel industry—namely Rooms, Food and Beverage (F&B), and Events—by conducting a comparative analysis based on revenue generation, cost structures, and profit margins. Using financial data from a mid-sized urban hotel over a three-year period, the research evaluates the contribution of each stream to overall profitability and identifies operational factors influencing performance. The study finds that while room revenue consistently delivers the highest gross margin due to fixed cost advantages and high occupancy rates, the F&B and Events departments, though less profitable in isolation, play a critical role in enhancing guest experience and supporting overall revenue through cross-selling opportunities. The findings highlight the importance of integrated revenue management and cost control strategies tailored to each department. This analysis provides valuable insights for hotel managers aiming to optimize resource allocation and improve the financial sustainability of their operations.