New York’s Biggest Hotel to End Long-Storied Service

by Christopher Freeburn | June 4, 2013 10:40 am

newyorkhiltonmidown 292x300 New York's Biggest Hotel to End Long Storied Service[1]Later this summer, guests at the New York Hilton Midtown will lose something they’ve enjoyed[2] since the hotel’s opening.

New York City’s largest hotel will stop offering room service in August. The hotel claims that demand for room service has declined in recent years. Hungry guests will be able to purchase breakfast, lunch and dinner at the hotel’s new cafeteria-styled restaurant Herb n’ Kitchen, which opens this summer, Crain’s New York Business notes.

In October, the Hilton Hawaiian Village became the first hotel in the chain to end room service. Other hotel operators are considering reducing or ending the long-time hotel perk. Hyatt‘s (H[3]) New York Grand Hyatt hotel began shutting down room service at 11 p.m. after it opened a 24-hour food shop.┬áThe Hilton hotel chain is owned by Blackstone Group (BX[4]).

One industry expert noted that hotels typically lose money on room service, due to labor costs. Hilton’s move could become an industry trend.

The Hilton Midtown’s move will cost 55 workers their jobs.

Shares of Blackstone Group rose more than 1% in Tuesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/06/newyorkhiltonmidown.jpg
  2. will lose something they’ve enjoyed: http://www.crainsnewyork.com/article/20130531/HOSPITALITY_TOURISM/130539976
  3. H: http://studio-5.financialcontent.com/investplace/quote?Symbol=H
  4. BX: http://studio-5.financialcontent.com/investplace/quote?Symbol=BX

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