It costs the hotel maybe $100 per person to deliver what they charge the guest $250. If they just raised the room rate by $150, they would probably lose bookings, but if they created a special festive dinner that people are likely to enjoy, it might be seen as a true value-add.

The food is likely to be stellar (disclaimer: I've never tried one of these dinners) for that price, and as mentioned will include entertainment, so you might as well give it a try if just for the meal.