What can you learn about Ancillary Revenue from the Empire State Building?

The Empire State Building earns over $500 million annually, and only ~70% of that comes from office space. The rest? Ancillary revenue. Observation decks, antenna leasing, broadcasting rights…even during economic downturns, these vertical revenue streams sustained the business.

Lesson for hotels: Don’t depend solely on rooms. Monetize every square metre and every guest interaction.

Real Estate? No. It's Real Strategy

Let’s unpack how this applies to hotels and resorts:

Ancillary Revenue in Hotels: The data doesn’t lie

From my book “Mastering Hospitality Ancillary Revenue”, here’s how modern hotels can emulate the Empire State strategy using rooms and F&B data ( no need for observation decks or antennas).

1. TRevPAR (Total Revenue per Available Room)

A powerful metric to track all revenue streams attributed to rooms: including F&B, room upgrades, minibar, etc. If your TRevPAR is only marginally above your ADR, it means guests aren't engaging with other services.

Action: Use upselling tools and mobile check-in prompts to offer upgrades, F&B packages, or exclusive in-room dining experiences.

2. F&B RevPOR (F&B Revenue per Occupied Room)

This reveals how much each in-house guest is spending on food and drinks. If you're averaging €18 but your outlets have a high check average of €35, many guests are skipping your F&B offering entirely.

Action: Identify guest segments by meal preference (breakfast-only vs. full-board potential) and retarget with tailored offers and promos.

3. RevPASM (Revenue per Available Seat Minute in F&B)

Inspired by airline revenue logic, this metric helps you understand how well you're monetizing your dining space per seat, per minute of opening time.

Action: Reduce dwell time during peak hours with smart table management and offer timed menus (e.g. express lunch menus) to increase table turnover.

4. Room Upsell Conversion Rate

Not every guest needs a suite, but many will pay for a better view or late check-out. This KPI tracks the effectiveness of your upselling strategy.

→ Action: Integrate dynamic pricing tools into your PMS or booking engine to automate and personalize upsell offers based on demand and guest profile.

5. GOPPAR (Gross Operating Profit per Available Room)

Just like the Empire State Building earned big from low-cost operations (TV antennas, rooftop tickets), this metric reveals which room categories and services generate the most profit, not just revenue.

Action: Compare GOPPAR across room types and F&B outlets. Reallocate marketing spend to boost high-margin products.

 What’s the Hospitality version of a TV antenna?

Here are Empire State-style ancillary ideas for hotels in 2025/26:

• Observation Deck = Experience Economy: Monetize your rooftop or lobby view with photo ops or sunset events.
• Broadcast Tower = Digital Real Estate: Partner with content creators or run live-stream experiences from your property.
• Office Floors = Flex Use Rooms: Turn unused conference rooms into yoga classes, gaming lounges, or escape rooms.

The Empire State Building didn’t survive a century of economic shifts by renting office space alone. Its legacy is built on thinking beyond the obvious and sweating every asset.

Question for you: What’s your hotel’s “observation deck”? What underused asset could become your next revenue giant?

Let’s keep innovating. The skyline isn’t the limit; but the opportunity.

Stay sharp, Pablo Torres https://torreshospitalityconsulting.com/