America’s free hotel breakfast is facing K-shaped economy threat

At some point in the 1980s and 1990s, free hot breakfast became a staple of the hospitality industry. At many a Holiday Inn or Hampton Inn, the lobby at 8 a.m. is a pinwheel of pajama-clad kids, confused parents, and solo business travelers vying for a spot in front of the waffle maker. Meanwhile, self-serve cereal bars serve up Froot Loops and Lucky Charms, and hot bowls of endless eggs and turkey sausages under heat lamps. For many, this breakfast is part of the allure of travel. It still exists today, but faces new economic threats and evolving hotel business models.

In hotels, they are getting rid of things like free soap and even… Bathroom doors And for the sake of saving, free breakfast is a sacred cow that some fear won’t survive, as hotel operators increasingly view it as a money pit eating away at the thin margins of the business. last year, Hyatt hotelsThe Hyatt Place brand has removed its free breakfast from 40 of its hotels. Holiday Inn, owned by InterContinental Hotels Groupeliminated a la carte breakfast items in favor of a buffet-only model—a cost-cutting measure that preserves the breakfast buffet offering while reducing labor and food waste.

Gary Leff, who runs the travel blog View from the Wing and was first to report on the breakfast changes at Holiday Inn, said the threat to free breakfast should be seen within a broader trend in the lodging industry to look for ways to cut costs for owners. “This goes beyond breakfasts, to things like housekeeping — less often during a stay, and less thorough when done during a stay — to loose toiletries rather than individual small bottles for disposing of products like alarm clocks in rooms,” Leaf said.

Despite the power of free breakfast, the math didn’t add any business value, according to Curtis Crimmins, CEO and founder of the boutique hotel concept Roomza. “It was a loyalty play — a loss leader aimed at driving subscriptions, repeat bookings, and expanding brand loyalty. I would argue that once free breakfast goes from being a cherished ‘surprise and delight’ moment to an expectation, its days are numbered,” Crimmins said. “Looking for evidence of this slow demise of the average Holiday Inn Express breakfast area? Look no further than the recent explosion of ‘Grab and Go’ options. This is no coincidence,” he said.

Catering to more affluent clients, as is the case at Hyatt hotels, may provide operators with greater freedom to ditch breakfast, Lev says.

A Hyatt spokesperson said that while the company has “tested breakfast options at select Hyatt Place hotels that offer guests the ability to book rates that do not include breakfast…most Hyatt Place hotels in the United States continue to offer free breakfast to all guests.”

Evaluations are ongoing. “As part of our ongoing commitment to providing value to our guests, including World of Hyatt members, we continually evaluate breakfast options that best serve our guests and hotels,” a Hyatt spokesperson said.

Hyatt hasn’t released data on the trial, and many guests may assume breakfast will be free when they book at this point, Lev says. “It’s not yet clear whether Hyatt can get away with not offering limited-service breakfast,” he said.

In the current economy where high-income consumers drive spending, luxury has become a bright spot in the travel space. Marriott International CEO Anthony Capuano describes the hotel business right now as a symbol of the K-shaped economy that’s getting a lot of attention. “There are economic headwinds and some uncertainty but we continue to see the consumer prioritizing travel and experiences,” Capuano told CNBC’s “Squawk on the Street” last week after his latest earnings. “Luxury has been a landmark for us,” Capuano said, adding that 10 percent of Marriott’s portfolio is in the luxury tier.

Marriott has made changes to breakfast at some luxury locations abroad. to For example, the Regis Macao has eliminated the free breakfast for Platinum, Titanium and Ambassador loyalty members as of March 2025 and replaced it with bonus points or discounted breakfast instead. Some Reddit users posted this month about the free omelet disappearing from Marriott’s breakfast bars and now being part of the full paid breakfast buffet, but a Marriott spokesperson said this is not a company-wide policy, and if true, individual hotel operators will make that decision.

Most travelers expect free breakfast

Consumer fragmentation is leading to a bifurcation of breakfast models, with upscale customers moving toward paid eggs Benedict and homemade croissants, while middle- and lower-income consumers flock to the free buffet.

Americans sure love their hotel breakfast. Of the guests who consume food and beverages at the hotel during their stay, the vast majority (78%) eat breakfast at the hotel, according to the 2025 J.D. Power North America Hotel Guest Satisfaction Study. Of that 78%, only 8% are paid, especially at upper-tier hotels where the trend is taking root.

Andrea Stokes, head of JD Power’s hospitality practice, said the data suggests guests continue to value breakfast as an important part of their hotel stay. “This percentage is higher at mid-range and mid-range limited-service hotel brands where free breakfast is typically part of the hotel brand’s standard offering,” Stokes said.

When J.D. Power asked mid- and upper-tier hotel guests to rate the importance of hotel features or amenities, about half (47%) rated the free breakfast as a “necessity” (versus just a nice-to-have).

Mitchell Murray, CEO of Station House Inn and three other boutique hotels in Lake Tahoe, California, says that while large hotel chains can offer economies of scale, free breakfast can account for roughly 5% of total revenue, closer to 6-7% once labor is included. “That’s a big cost, and many operators are asking, ‘Does free breakfast actually increase revenue or bookings by 5%?’ “In many cases, the answer is no,” Murray said. He added that when breakfast is free, quality often suffers, such as poor coffee, watery eggs and frozen potatoes. “They’re edible, but they’re rarely memorable or value-added,” Murray said.

One of Murray’s properties is a Holiday Inn Express that he will move to a standalone hotel this year, as he plans to ditch the free breakfast after the change, once freed from corporate mandates. Master franchisors of hotel brands have specific brand standards that franchisees must adhere to, and this includes food and beverage standards.

However, Best Western has no plans to spin off the waffle iron. “Offering free breakfast is an important part of our guests’ experience across most of our portfolio,” said hotel chain CEO Larry Kukolek. “For travellers, free breakfast simplifies the stay, delivers meaningful value and influences booking decisions and loyalty, especially in the mid-range and upper segments,” Kukulik said.

The economics still make sense, Kukulik says: Breakfast supports guest satisfaction and repeat business By leveraging the buying power of its extensive hotel network, Best Western can help hotels manage costs while maintaining quality and consistency, “making breakfast a friendly touchpoint for guests and a long-term driver of loyalty.”

The Holiday Inn Express is also located next to the free breakfast bar. “Breakfast plays a critical role in our value proposition and remains a key reason why travelers choose to stay with us – it is something they know, trust and expect from our brand,” said Justin Alexander, vice president of global brand management for Holiday Inn Express, Staybridge Suites and Candlewood Suites.

How will changes to the hotel menu affect travel planning

Breakfast at the hotel influences the travel planning of Amy Misovich and her family. The Holland, Michigan, resident said her family is Hilton Honors members. “So we always stay at their hotels — usually, Embassy Suites, Homewood or Hampton Inn. All three still offer free breakfasts at the hotel,” Misovich said, adding that she likes the variety offered.

“Homewoods started offering overnight oats and chia pudding. I participate in the latter. Other times, I have a bagel with cream cheese, or a sausage slice inside the bagel for a breakfast sandwich of sorts,” Misovich said. She added that the quality can vary from one property to another, but the breakfasts are still attractive.

“I sure hope Hilton keeps their free breakfasts! After all, they’re not really ‘free,’ and I’m sure they’re somehow factored into the room rates,” Misovich said. She also noted that the foods she eats at hotel breakfasts she rarely eats at home, “so it’s a treat for me when we travel.”

A food and beverage offering, even if it’s just for breakfast service, can be a key differentiator for limited-service hotel brands. “Any hotels considering reducing or eliminating free breakfast should focus on demonstrating value in other ways,” Stokes said.

Rita Shaddad, a faculty member who teaches courses on tourism and hospitality management at Columbia Southern University, expects that free breakfast will continue to be eliminated at luxury brands but will remain in some form elsewhere, though travelers should expect more changes to come.

“Iftar is likely to remain, but the model may become more fragmented,” Shaddad said. In upper mid-range environments, hotels may be more willing to offer breakfast through credits, optional add-ons, or targeted inclusion – for example, through packages or loyalty benefits. “At these levels, hotels may have more flexibility to trade off ‘free’ for perceived value in other forms, provided it is communicated well and the guest feels the trade-off is fair,” Shaddad said.

But she added that many mid-range hotels compete on simple, visible value, and breakfast is one of the clearest signs of that value, so there is a risk of backlash if it is scrapped entirely. “Removing it could result in a perceived loss that may outweigh the operational savings, even if the hotel’s overall cost structure improves behind the scenes. For value travelers, breakfast is often interpreted as part of the ‘deal,’ and missing it can complicate a guest’s mental calculations when comparing properties,” Shaddad said.

Hotels will increasingly engage with offers, Shaddad said, and beyond higher-end hotels, travelers should look for new models that appear as room-only options versus options that include breakfast, breakfast offered through packages or loyalty benefits, or other redesigned formats that control costs while keeping the benefits visible to guests. “This shift may be less about eliminating breakfast and more about adjusting who receives it, how it is delivered, and how clearly it is priced or bundled,” she said.

While some of these changes may add to a hotel’s bottom line, they may come at an additional emotional cost. “My kids and I would be so sad if they stopped offering free breakfasts at hotels,” said East Tennessee resident Joan Peterson. “It’s part of the fun of traveling.”