Hotels have gotten pretty good at creating a sense of place, but the best ones have figured out how guests can take that place with them—all while increasing their own revenue.
It’s a linen spray that smells like the lobby. A tote from a local artisan. A small-batch pantry item that shows a guest how to make that killer recipe at home.
It’s … the retail offerings in the lobby.
“We see retail in the hotel lobby as an extension of the guest experience and an opportunity to drive supplemental revenue utilizing what previously would have been dead space in our lobby areas,” said Kerry Ranson, president of operations and a partner at Raines.
Ranson views retail as a supporting role in her company’s revenue strategy—one that offers greater value if you can enhance guest satisfaction by providing items at their fingertips, thereby reducing their need to leave the property while increasing the time they spend in your public areas.
Hotel operators’ bullish stance on retail offerings is supported. Retail outlets have increased Raines’ total revenue across its portfolio by more than 1 percent, and brands are feeling the lift, too. Swimwear maker Hunza G’s sales at signature boutique Agora within Six Senses Ibiza has “outstripped those of some of its major New York stockists,” noted an August 2025 Vogue piece that highlights the resorts and hotels curating retail spaces that rival department stores.
CBRE’s August 2025 edition of Hotel Horizons further adds that while U.S. hoteliers struggled with revenues only increasing by 0.8 percent during the first half of that year, ancillary revenue has remained a bright spot.
“Hotel redevelopments and renovations completed in the last few years included more activated food and beverage real estate, in many cases blurring the lines between lobby lounges, retail and entertainment,” the report noted.
This revenue play has gained so much momentum that many hotels are rethinking how their spaces are planned, with retail or retail-adjacent concepts being built into the operating model itself.
Hyatt’s recently announced Select brand, for example, includes a 24/7 self-serve market as a standard feature. The concept is designed to capture incremental spend while operating with minimal labor.
Hilton is taking a similar approach. Its refreshed Tru by Hilton prototype emphasizes flexible, activated lobby spaces that support grab-and-go offerings and informal retail as part of the guest experience.
Convenience, Curation and Context
Of course, much like the apparel sold in a lobby’s retail outpost, a hotel’s merchandising strategy can’t be a one-size-fits-all approach.
“[Hotels and portfolios] are so diverse, so one formula doesn’t work across the board,” said Rick Schlenther, director of retail and design at Marcus Hotels & Resorts.
Schlenther added that the number of retail locations and property size are inherent factors when developing the right assortment of retail products. While these are elements that must be considered, Ranson believes there are targeted general strategies that can lead to retail success.
“What works is locally relevant products, partnerships that align with the hotel’s values and community, and retail that feels integrated into the overall design and flow for guests,” he said.
The lobby shop in Hotel Florence in Florence, S.C., for example, contains a large selection of locally sourced items, while many of the offerings at newly opened the Lantern in Columbia, S.C., were created by members of the IDD (intellectual and developmental disabilities) community.
Then there’s the branding element of retail, something Bunkhouse Hotels leans into heavily.
“The most effective curating approach is to have about 60 percent custom, branded goods and then the rest can be locally made third-party goods, or goods found throughout the hotel like glassware, ceramics, etcetera,” said Erin Lindsey, regional vice president of brand and marketing at Bunkhouse Hotels, part of JdV by Hyatt. “People love to take a piece of the experience home with them.”
Offering something from the brand that guests can take home can be a wise move.
“It helps them share the experience with friends and loved ones,” Lindsey said. “They continue to share the stories of our brands, and some even become brand loyalists as they collect from all the hotels.”
With this in mind, Raines’ Waynesville Inn and Gold Club in Waynesville, N.C., contains a dedicated Pro Shop that offers an expansive selection of Waynesville-branded merchandise.
“We really view retail as a way to add to the guest experience,” Ranson said. “We love having items available that the guests can remember their stay by.”
These types of souvenirs aren’t limited to logo-filled merchandise, either. Instead, they can take a few forms, including a memorable sensory experience that can be replicated back home in the form of a scent, recipe book and more.
“At the Theo in New Orleans, there is local dessert mixes that can be brought home to make beignets in a guest’s own kitchen, as well as locally brewed beers, which have become a favorite item to purchase,” Ranson continued.
Separating Strong Lobby Retail From the Rest
Naturally, the idea behind branded merchandise—whether it’s touted or consumed—is to serve as a reminder and advertiser for the great time a guest had at this great place.
That’s why the branding must feel intentional.
“A lot of brands tend to just slap their logo on a t-shirt, which is not always the best way to extend your brand,” Lindsey said. “A good retail program should show the guest how your brand is expressed beyond the logo.”
It should also feel accessible.
“Allow guests to touch the merchandise, try on the shirt, smell the apothecary and open the book,” she continued. “It’s the best part of the retail experience.”
Though the merchandise should feel accessible, Schlenther believes there’s something to be said for exclusivity in terms of offerings.
“Utilizing branded resources that have limited distribution in our markets ensures a point of differentiation with local businesses near us,” he said. “Exclusive merchandise that celebrates our brands is one of our fastest-growing categories.”
Marcus focuses on items that feature great design and quality, ranging from homemade candies to small home décor pieces. Some of its bestsellers include candles featuring the hotel’s signature scent, as well as locally made soap sets shaped like erasers at Saint Kate—the Arts Hotel in Milwaukee, Wisc.
Aside from merchandise, there’s also the logistics of running this retail operation. If done right, it can result in more retail sales and a higher revenue stream. If executed poorly, it can tax staff and deplete already scarce resources like time, energy, money and space.
That’s why Bunkhouse implements specific training for the front desk staff, who are generally charged with running lobby retail operations.
“We train them on all of the items, merchandising and inventory,” Lindsey said. “We’ve found that the best approach is always when the front desk team is well versed in the offerings and the stories of the products, so they feel comfortable talking with our guests about each item in the shop.”
Schlenther believes this type of training should also include how to care for not only the merchandise, but the retail space and, of course, the guest.
“Making sure we communicate timely and in executable detail has been one of our biggest learnings as we grow our retail operations,” he said. “Knowledge builds confidence.”
It also builds consistency—a pillar of retail success.
“Ensuring product and consistency of offerings is very important,” Ranson added, noting that Raines’ purchasing platform lets its teams monitor inventory levels and stock accordingly to cultivate an appealing presentation that includes multiple options.
Maintaining productive inventory levels ensures that hotels—and front desk staff, in particular—strike a good balance between offering enough of a service, experience and merchandise variety that guests are compelled to buy while safeguarding the time and sanity of the staff.
This includes monitoring the items’ performance, which can help determine what may need to be liquidated or replenished. New items must also be introduced strategically to ensure solid growth in sales and profitability as a retail operation continues to evolve.
“The introduction of new items and categories has been a large part of our growth, while improving guest service levels has also been a major factor,” Schlenther said. “Sales growth and feedback provided from property surveys and directly to associates from shoppers indicates we are moving in the right direction.”
Marcus has also seen an uptick in traffic and sales from locals, many of whom are prompted by the hotels’ social media posts.
Knowing what retail strategies are effective is one part of the ancillary revenue equation, but equally important is focusing on what doesn’t work. Red flags for Ranson include overly complex inventory, generic product offerings and treating retail as only a revenue play instead of an experience.
“Having empty shelves with very limited offerings or items not organized correctly are also sure-fire ways to failure,” he added.
Like other ancillary revenue streams, lobby retail provides another way for hotels to offset some of the challenges they’re currently facing. While it’s not likely to replace core revenue drivers, these offerings certainly can keep guests on property, extend the brand and capture spend that would have otherwise walked out the door.
Oh, and when a guest does walk out the door with a piece of branded merch, they’re that much more likely to become a walking, talking ambassador of yours.
This article was originally published in the June/July edition of Hotel Management magazine. Subscribe here.