F&B Minimum (Food & Beverage Minimum)

An F&B minimum is a commitment in a hotel contract to spend a set amount on food and beverage, separate from what the group pays for rooms. Hotels ask for it in exchange for the group rate or meeting space. If the group's catering, banquets, and receptions fall short of the minimum, the hotel charges the difference as a shortfall, often plus tax and service charge. F&B minimums appear most in contracts that bundle guest rooms with event space, and they can rival attrition as a source of unexpected cost. Track the F&B commitment alongside your room block terms so the full obligation is visible in one place. When negotiating, confirm what actually counts toward the minimum — some hotels exclude tax and service charge from credited spend — and whether an unmet minimum can be reallocated to other services.