A free-standing location in a trendy neighborhood often helps a restaurant generate or maintain a buzz above and beyond a noteworthy chef or cool interior design. However, what makes a restaurant location trendy inevitably evolves, along with rent costs, built-in customer base, and other factors that shift public perceptions—for better or for worse.
For this reason, some restaurateurs believe there is something to be said for setting up shop in a hotel or resort that appeals to the same kind of customer. Some potential advantages include a lower liability for the hotel in elevating the guests’ food and beverage experience, synergistic marketing between the two partnering brands, and a destination dining experience that is equally intriguing amongst locals and out-of-town visitors.
During the process, prospective partners need to understand each other’s brand identities, business objectives, and approach to culinary and marketing innovations. Without good communication, the result may be written off as “the hotel restaurant”—which is not the image most restaurateurs or hotel F&B directors are going for. In the same vein of picking the right lot, building, or neighborhood, there is work involved in finding a specific hotel or resort where your establishment would be a perfect fit, from the hotel’s target customers to the kitchen’s culinary niche.
When it comes to hotel-restaurant collaborations, the Las Vegas strip is the ultimate test kitchen for hotel-restaurant collaboration recipes. Since Las Vegas’ renaissance starting in the 1990s, big name establishments made their names even bigger on a national and global scale when partnering with top hotels. The long-awaited opening of the Fontainebleau Las Vegas in 2024 made an even bigger splash with Los Angeles-based Mother Wolf, Miami’s Papi Steakhouse, and KYU (locations in Miami, New York, and Mexico City) joining its stellar restaurant lineup. Yet there’s more to come in other cities.
“Hotel restaurants are tricky,” concurs Anthony Stefani, owner of Tavern on Rush at the Thompson Hotel Chicago. “There is a stigma about restaurants in hotels that...people not staying at that hotel would avoid a hotel restaurant. At the end of the day, it comes down to location, having similar brand and hospitality standards, and most importantly the terms of the agreement.”
From Neighborhood Standby to Destination Standout
The Stefani Restaurant Group established itself in 1980 with a flagship restaurant in the city’s fashionable Lincoln Park neighborhood. In the 45 years since, Stefani’s family-owned brand and concept went from a local institution to a group of restaurants across town that are at once neighborhood favorites and destinations for customers from outside the city. The hotel approaching Stefani Restaurant Group had to uphold a decades-long reputation even as aspects of it would be tailored to hotel service.
“During the negotiations, the hotel had the confidence that we would be able to reach the higher-end standards that the hotel was looking for in all facets such as décor, food, and hospitality based on our proven track record of success across the street with the same concept,” Stefani explains. “Taking on room service, everyday breakfast and banquets required us to create particular menus that would delight both hotel guests (and other tourists) but also those who live and work in the neighborhood.”
Over in San Diego, Clayton Wellbank, CEO and founder of Brewery X, found himself in a similar situation to Stefani’s in terms of finding the perfect candidate for a hotel partnership. Among other things, the property needed to have an aesthetic and target market that shared the Brewery X brand’s “vibrant, laid-back energy” and “coastal lifestyle” appeal. The Sheraton San Diego Resort came out on top, not only because it was undergoing a $100 million refresh designed to incorporate the city’s flavor into its aesthetic, but also because its location on Harbor Island was perfectly positioned to attract both hotel guests and locals.
“This was our first Brewery X hotel location, and we knew it was crucial to partner with a property that aligned with our brand’s culture, clientele, and long-term vision,” Wellbank details. “We leaned into existing relationships we had built over the years, which gave us the confidence that we were putting our brand into trusted hands. We were also in search of a hotel with on-the-ground, local operators, which helped create a seamless communication process as we were all in the same time zones, and we knew we were communicating with the people who would be in charge of day-to-day operation and execution of the vision rather than hands-off relationships with people across the country.”
Wellbank also feels San Diego’s reputation as a craft beer destination made the partnership particularly strategic. As Sheraton’s brand philosophy (“The World’s Gathering Place”) was compatible with Brewery X’s, the timing was right to build something fresh from the ground up and create an experience that felt seamlessly integrated into the property and the city’s culture. He also felt the property’s strong year-round occupancy rate, the San Diego waterfront location, and the reach of Sheraton’s global loyalty program ensured consistent occupancy and traffic among visitors and the city’s beer enthusiast community.
Stefani recommends that his fellow independent restaurant and restaurant group owners take “all the little details” about the restaurant into consideration from the start of negotiations forward. Based on his experience, opening a restaurant in a hotel may constitute a high risk, especially as some customers, particularly locals, are not drawn to frequenting hotel restaurants. Furthermore, as many restaurants in hotels are typically operated by the hotels, there are some deal-breakers he suggests keeping in mind when negotiating with hotel management and figuring out if the relationship will work.
“When opening a restaurant in a hotel, it is very much a partnership with the hotel,” affirms Stefani. “There are a lot more guidelines that need to be followed in order to accommodate the hotel and their guests. Most instances (like ours), the hours of operation are largely dictated by the hotel, the menu has to check certain boxes with the offerings to accommodate the hotel guests and the banquets. Many larger hotel groups will require final approval on design elements to fit the standards of that particular hotel.”
Even with the potential impact of the Brewery X and Sheraton brands coming together for visitors and local customers, Wellbank says a make-or-break part of the deal was allowing the restaurant group to be part of the creative process to ensure the finished product authentically reflected the brand, from the interior design to the menus to the operational workings behind the scenes. Maintaining creative control reinforced Wellbank’s trust in the partnership and confidence that brand’s personality and quality would be preserved to make the transition seamless.
“We wanted the restaurant to feel fully integrated into the resort’s new vision, so every design element needed to align with both Brewery X’s identity and the hotel’s refreshed aesthetic,” Wellbank explained. “We wanted to ensure that the hotel’s designers integrated some of the whimsical décor elements, such as Instagrammable wallcoverings and colorful lighting into the overall look and feel. The restaurant’s menu remained true to Brewery X’s signature style, and while the hotel’s culinary team had the freedom to craft a unique menu tailored to this location and hotel clientele, it needed to be inspired by our core offerings and cheeky approach to naming dishes. Quick decision-making and open communication were essential, allowing us to move efficiently and ensure that both Brewery X and Sheraton San Diego Resort were equally invested in the success of the restaurant.”
The home-grown brand’s visibility in San Diego has not only led to a heavier concentration of beer sales in grocery stores (providing an extra income stream), but also draws in beer enthusiasts from all regions seeking out its brews.
Wellbank believes that the restaurant’s exposure to hotel visitors who pass through from other regions will help Brewery X find homes in other markets. “We hope those positive memories will create excitement to revisit us time and time again as we open new restaurants in the future,” he says.
General Manager Tobias Froehlich of MAASS at The Four Seasons in Fort Lauderdale, says creating an experience that resonates with both locals and tourists is crucial for long-term success. "At MAASS, our mission is rooted in genuine hospitality, ensuring that every guest—whether a local or a traveler—feels welcomed, valued, and cared for. When it comes to hospitality, it doesn't matter if you're a tourist or a local," he says. "From a business perspective, attracting a strong local following fosters repeat business and word-of-mouth recommendations, expanding our reach beyond immediate guests. Visitors, in turn, bring valuable exposure and extend our brand's reputation beyond the region. By catering to both locals and hotel guests, business can flow consistently.”
What to Check Out Before You Check In
Wellbank offers his checklist for forging collaborations with hotels without compromising what made them a local favorite:
- Reputation & Longevity: The hotel’s standing in the industry, its longevity in the market, and its commitment to maintaining high standards are all critical. A well-executed renovation and ongoing property upkeep signal that the hotel is invested in delivering a quality experience. Also, be sure the hotel is willing to market the restaurant as an important hotel amenity.
- Market Stability: Prioritize hotels with consistently high occupancy rates rather than those dependent on seasonal fluctuations.
- Loyalty Programs: Strong, well-established loyalty programs help ensure a steady flow of guests and drives foot traffic to the restaurant year-round.
- Local Appeal & Brand Alignment: A hotel that attracts both travelers and locals creates a built-in audience for the restaurant. Waterfront properties, high-visibility locations, and alignment with the Brewery X brand played a role in the decision-making process.
- Business & Operations: Strong communication and hands-on leadership are essential, so seek out hotel partners willing to be actively involved in operations and a commitment to long-term success in the market, rather than offsite decision-makers.
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