The New York Hilton Midtown, a 2,000-room, full-service hotel, plans to eliminate room service this summer and open an on-site eatery that will offer gourmet take-out. The company said it does not have current plans to roll out the initiative more broadly at its 4,000 hotels worldwide.
Chief Executive Christopher Nassetta, speaking at a hospitality conference hosted by New York University on Monday, said he expected other hotel companies to scale back or scrap room service, according to Hilton Worldwide. Fewer guests are using room service and it is not profitable for many hotels, the company reported him saying.
The move could represent a major change for the industry as hotels seek to boost profitability and closely examine what products have value and what can be expended.
"It's big news because room service is iconic within a full service hotel operation," said Scott Berman, who leads the hospitality and leisure practice at PwC. "But for a long time, it's been a drain on its ability to perform."
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