Start with three different amounts
Shop turnover: what guests spend in the store
Shop turnover consists of sales of food, drinks and convenience products in the lobby shop. This is the amount a shop revenue forecast concerns. It is not automatically the hotel owner’s income. Use the same period and sales basis when comparing figures so that the comparison is meaningful.
Hotel income: your agreed share
Your hotel receives an agreed percentage of sales. The amount follows from the agreed sales basis multiplied by that percentage. Ask the proposal to define this basis, any sales adjustments and the settlement process clearly. You can then translate expected shop turnover into revenue-share income for your hotel.
Contribution to the hotel’s results
Next, assess the costs that belong to the hotel, such as electricity and any site-specific works. Consider the effect on existing outlets too. An own-capital contribution is a separate financing choice: compare recurring cash flows as well as the money you provide upfront. The entire shop turnover should therefore not be described as your net profit.
This guide focuses on the financial decision. For formats and layouts, see the overview of hotel micro markets, from a compact mini market to a more extensive hotel convenience store.
Which hotel details shape the revenue opportunity?
- Rooms and occupancy: room count indicates scale; occupancy reflects actual stays.
- Guests per room and length of stay: one occupied room is not the same as one guest or one purchase.
- Guest mix and purpose of travel: business guests, families and long-stay visitors can have different product needs and purchase occasions.
- Purchase occasions: late arrival, leaving before breakfast, a quick purchase between activities or something for the journey.
- Transaction count and spend per purchase: more visitors do not automatically mean more buyers or a larger basket.
- Visibility and range: guest routes, product availability and understandable prices affect how useful the shop is.
Two hotels with the same room count can therefore have different retail potential. Use your own occupancy data for suitable periods and describe which guests actually pass the shop. Do not treat repeat guests, occupied rooms and transactions as interchangeable counts.
For example, a lobby shop can support grab and go and purchases at departure. Identify the need not already met by breakfast, the bar, restaurant or minibar, rather than relying only on a general expectation of growth.
Which sales are additional?
New categories and different times of day can capture demand previously served outside the hotel. Examples include a late snack, a drink for the journey, toothpaste, a toothbrush, a charger or condoms. A lobby convenience store can serve food and drink needs as well as practical travel needs. The actual range is tailored to your guests.
A purchase moving from the bar or minibar to the shop is not entirely new demand. Assess revenue-share income alongside changes in the contribution of existing outlets. Use comparable occupancy, guest mix and seasons. Comparing a busy event week with a quiet month says little about the impact of the hotel shop itself.
Assessing additional returns after opening
- Before opening, record unmet guest needs and the performance of your bar, restaurant, minibar and room service.
- Review shop sales by time and product category. Separate F&B from additional travel and personal care essentials.
- Compare sales per occupied room or guest night as well, so higher occupancy is not automatically credited to the shop.
- Account for season, guest mix, events, price changes and opening hours. Where possible, also compare with a similar hotel without a new shop.
- Assess total income: the shop’s revenue share together with changes in other outlets. Record measurable reductions in your own shop or minibar duties separately.
- Review availability, guest feedback and the range with Selecta, and adjust towards additional demand and maximum sales.
Measure any time released separately from shop sales. More time for hospitality is valuable, but it becomes a financial saving only when your own costs demonstrably change.
Which operating costs are included?
Selecta provides standard restocking, daily checks, shop cleaning, maintenance and range optimization within the revenue-share model. The hotel does not receive a separate bill for this standard service. The hotel provides space and electricity; assess any financing and site-specific works separately.
The guide to daily operation of a hotel shop without extra staff explains how Selecta’s own people visit seven days a week, more often when needed, and what role remains with your hotel team.
The hotel provides space and electricity and receives its agreed percentage of sales. Specific requests and any site adaptations are discussed separately. Read how Selecta works to see how the proposal is tailored to the location and hotel concept.
Financing: no own capital required
No own capital is required for installation. Selecta can develop flexible financing options suited to the client, the desired shop and the revenue potential. An own-capital contribution can enable more attractive terms, such as a higher revenue share and/or a shorter contract.
Compare proposals using the same assumptions. Set out expected shop turnover, the hotel percentage, any financing payments, your capital contribution and the contract term together. A higher percentage cannot be assessed independently of the investment required to obtain it. Compare cash flows over a similar duration and consider what fits your hotel and available capital.
Show standard shop service, any financing and site-specific works separately. This avoids confusing included daily operations with a selected financing arrangement. The actual terms belong in your hotel’s proposal; there is no universal revenue share or fixed payback period for every location.
How to use the revenue calculator
The revenue calculator uses rooms, estimated occupancy and location type for an initial indication based on Selecta benchmark data. The displayed amount is indicative annual gross shop turnover. It is neither a guaranteed payment to the hotel nor a calculation of net profit.
Use the result to start a discussion about the specific location. Ask the proposal to explain how guest mix, range, existing F&B and the agreed revenue share are considered. Request a more cautious, an expected and a more favourable scenario with visible assumptions. This gives more insight than treating one amount as a fixed annual result.
Both shop turnover and hotel income should remain identifiable in the scenarios. Explore what happens if demand differs from expectations. With lower sales, the agreed percentage applies to a smaller sales basis; a revenue percentage alone therefore does not guarantee a fixed amount.
What does up to 10× more revenue than vending mean?
A Lobby Market can generate up to 10× more revenue than traditional F&B vending. This compares shop sales with traditional vending machines. It does not mean that total hotel revenue or profit grows tenfold, and it is not a fixed multiplier for every hotel.
Assess current vending sales over a comparable period and at comparable occupancy. Account for differences in location and product range. The comparison of lobby shops and vending explains differences in the shopping experience and offer. Then consider potential sales growth together with the agreed revenue share to assess its value for your hotel.
Checklist for a financially informed proposal
- Document room count, occupancy, guest mix, stay length and arrival and departure patterns.
- Describe the existing offer and the results of relevant F&B outlets and vending machines.
- Request supported sales scenarios using the same period and clearly stated assumptions.
- Show the sales basis, hotel percentage and settlement separately.
- Confirm the included daily Selecta service and identify electricity, any site costs and financing separately.
- Compare a proposal without own capital with an optional contribution, including revenue share and contract term.
- Agree how to track shop sales, hotel income, product availability and the performance of existing outlets after opening.
Comparing several solutions? Use the guide to choosing an unmanned hotel shop to connect financial terms with layout, guest experience and the actual service model.
Frequently asked questions about hotel lobby revenue
Is shop turnover the same as hotel income?
No. Shop turnover is sales in the store. The hotel receives its agreed percentage of the agreed sales basis. For the hotel’s results, also consider its own costs and the effect on existing outlets.
What does the revenue calculator show?
An initial indication of annual gross shop turnover based on rooms, estimated occupancy, location and Selecta benchmark data. It is not a guaranteed hotel payment. The hotel’s revenue share is detailed in the proposal.
What revenue percentage will my hotel receive?
The percentage is tailored to your hotel and proposal. Hotel profile, financing and contract choices play a role. An own-capital contribution can enable a higher revenue share and/or a shorter contract.
Does the hotel pay separately for daily refilling and cleaning?
No. Standard shop operations are part of Selecta’s revenue-share model. Its own staff visit daily, seven days a week, and more often when needed. Selecta handles replenishment, checks, cleaning, maintenance and range improvements.
Does the hotel need to invest its own capital?
No own capital is required. Selecta can develop flexible financing suited to the hotel. The hotel provides space and electricity; any site-specific works and an optional contribution are discussed separately.
Are all lobby shop sales additional hotel revenue?
Not automatically. New occasions and categories can add demand; a purchase moving from the bar or minibar is partly transferred sales. Assess hotel income and existing outlets together across comparable periods.
Does 10× more revenue also mean 10× more profit?
No. The potential comparison of up to 10× concerns revenue relative to traditional F&B vending. Hotel income depends on the agreed share; the eventual result also requires considering hotel costs and existing activities.
