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NEWS
Robust revenue growth at hotels with wellness offerings worldwide during 2022, finds RLA Global
POSTED 24 May 2023 . BY Megan Whitby
Hotels with wellness offerings were in general supported by the overall recovery of the global hotel market in 2022 Credit: Viceroy Los Cabos

Credit: RLA Global
Investors need to give serious consideration to the overall wellness concept of the development at the planning stage
– Roger Allen
Revenues at wellness hotels rose sharply in 2022 as demand rebounded, despite economic and geopolitical difficulties.

Hotels with wellness offerings also experienced strong TRevPAR (total revenue per available room) growth in 2022 as markets benefited from a recovery in demand.

These were the standout findings from RLA Global’s annual Wellness Real Estate Report.

The report – now in its fourth year – evaluates average hotel performance based on data from P&L benchmarking firm HotStats covering about 2,600 major-, minor- and non-wellness hotels of all classes worldwide.

Processing property-level KPI results, such as average daily rate (ADR), occupancy rates, TRevPAR, gross operating profit per available room (GOPPAR) and gross operating profit (GOP), the report presents how wellness contributes to hotel revenue flows and operating costs, and what effects it has on margins and overall profits.

TrevPAR bounces back
The 2023 report reveals that average TRevPAR rose by over 53 per cent on the year in 2022 at hotels with ‘minor wellness’ offerings – those generating less than US$1m (€928,500, £807,500) or 10 per cent of total revenue from wellness and leisure.

Meanwhile, TRevPAR climbed by nearly 47 per cent at ‘major wellness’ properties, where wellness and leisure account for over US$1m (€928,500, £807,500) or 10 per cent of total revenue.

The Americas took the lead in global TRevPAR performance.

Average spend on the rise
Guest spending in 2022 was the highest at hotels with major wellness, which outperformed minor wellness properties in absolute TRevPAR and occupancy. But, major wellness hotels often face higher costs, which RLA Global says explains why properties with minor wellness had a five per cent higher GOP-to-revenue ratio, and an eight per cent stronger total operating performance last year.

“Although the category of major wellness hotels takes all the plaudits for property-level top-line performance, it does come with higher operating costs, which results in lower GOP-to-revenue ratio and operating profit performance to total revenue,” explained Roger A Allen, group CEO of RLA Global.

“This is precisely where the minor wellness category indicates potentially better cash returns, and this is also why investors need to give serious consideration to the overall wellness concept of the development at the planning stage.”

Michael Grove, CEO of HotStats, added: “Key hotel expense lines saw growth above and beyond inflation in most regions, making it vitally important that hoteliers were able to drive top line performance to offset.

“Energy costs, operational labour costs and guest supplies in particular challenged hoteliers to focus on efficiency and while this meant resorts and wellness offerings became a lot more challenging to manage, experiential demand drove guest spend, resulting in what was an excellent year from a profitability point of view.”

Hotels with wellness offerings were in general supported by the overall recovery of the global hotel market in 2022, despite increased inflation and difficulties caused by the war in Ukraine and the pandemic.

Although hospitality was still in recovery mode, RLA Global says the wellness industry was going from strength to strength, which may support a fairly positive market outlook.

Find out more
The Wellness Real Estate Report 2023 also discusses how the standout trends of branded residences, technology innovations and community-based wellness, as well as adventure activities, will continue impacting wellness real estate and provide development and operational teams with experiences that can broaden the service offering, strengthen guest engagement and improve hotel performance.

Download the full report here.

About RLA Global
RLA Global (Resources for Leisure Assets Global) is an international consultancy specialising in leisure and wellbeing in real estate.

About Hot Stats
HotStats provide monthly P&L benchmarking for the hotel industry, collecting detailed financial data from over 6,000 hotels in total worldwide from over 100 brands and independent hotels, and provides over 550 different KPIs covering all operating revenues, payroll, expenses, cost of sales and ultimately departmental and total hotel profitability.
RELATED STORIES
  Wellness drives record TRevPAR results thanks to pandemic, reports RLA Global


Hotels with wellness revenues exceeding US$1m generated 126 per cent more in total revenue per available room (TRevPAR) in 2021 than those with wellness revenues of less than US$1m, according to the latest Wellness Real Estate Report by RLA Global*.
  Report: Leisure shift drives wellness real estate during the pandemic


Hotels with wellness revenues exceeding US$1m (€852,700, £731,700) generated nearly 75 per cent more in total revenue per available room (TRevPAR) in 2020, compared to locations with wellness revenues of less than US$1m.
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28-29 Jul 2024

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Uniting the world of spa & wellness
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News   Products   Magazine   Subscribe
NEWS
Robust revenue growth at hotels with wellness offerings worldwide during 2022, finds RLA Global
POSTED 24 May 2023 . BY Megan Whitby
Hotels with wellness offerings were in general supported by the overall recovery of the global hotel market in 2022 Credit: Viceroy Los Cabos
Credit: RLA Global
Investors need to give serious consideration to the overall wellness concept of the development at the planning stage
– Roger Allen
Revenues at wellness hotels rose sharply in 2022 as demand rebounded, despite economic and geopolitical difficulties.

Hotels with wellness offerings also experienced strong TRevPAR (total revenue per available room) growth in 2022 as markets benefited from a recovery in demand.

These were the standout findings from RLA Global’s annual Wellness Real Estate Report.

The report – now in its fourth year – evaluates average hotel performance based on data from P&L benchmarking firm HotStats covering about 2,600 major-, minor- and non-wellness hotels of all classes worldwide.

Processing property-level KPI results, such as average daily rate (ADR), occupancy rates, TRevPAR, gross operating profit per available room (GOPPAR) and gross operating profit (GOP), the report presents how wellness contributes to hotel revenue flows and operating costs, and what effects it has on margins and overall profits.

TrevPAR bounces back
The 2023 report reveals that average TRevPAR rose by over 53 per cent on the year in 2022 at hotels with ‘minor wellness’ offerings – those generating less than US$1m (€928,500, £807,500) or 10 per cent of total revenue from wellness and leisure.

Meanwhile, TRevPAR climbed by nearly 47 per cent at ‘major wellness’ properties, where wellness and leisure account for over US$1m (€928,500, £807,500) or 10 per cent of total revenue.

The Americas took the lead in global TRevPAR performance.

Average spend on the rise
Guest spending in 2022 was the highest at hotels with major wellness, which outperformed minor wellness properties in absolute TRevPAR and occupancy. But, major wellness hotels often face higher costs, which RLA Global says explains why properties with minor wellness had a five per cent higher GOP-to-revenue ratio, and an eight per cent stronger total operating performance last year.

“Although the category of major wellness hotels takes all the plaudits for property-level top-line performance, it does come with higher operating costs, which results in lower GOP-to-revenue ratio and operating profit performance to total revenue,” explained Roger A Allen, group CEO of RLA Global.

“This is precisely where the minor wellness category indicates potentially better cash returns, and this is also why investors need to give serious consideration to the overall wellness concept of the development at the planning stage.”

Michael Grove, CEO of HotStats, added: “Key hotel expense lines saw growth above and beyond inflation in most regions, making it vitally important that hoteliers were able to drive top line performance to offset.

“Energy costs, operational labour costs and guest supplies in particular challenged hoteliers to focus on efficiency and while this meant resorts and wellness offerings became a lot more challenging to manage, experiential demand drove guest spend, resulting in what was an excellent year from a profitability point of view.”

Hotels with wellness offerings were in general supported by the overall recovery of the global hotel market in 2022, despite increased inflation and difficulties caused by the war in Ukraine and the pandemic.

Although hospitality was still in recovery mode, RLA Global says the wellness industry was going from strength to strength, which may support a fairly positive market outlook.

Find out more
The Wellness Real Estate Report 2023 also discusses how the standout trends of branded residences, technology innovations and community-based wellness, as well as adventure activities, will continue impacting wellness real estate and provide development and operational teams with experiences that can broaden the service offering, strengthen guest engagement and improve hotel performance.

Download the full report here.

About RLA Global
RLA Global (Resources for Leisure Assets Global) is an international consultancy specialising in leisure and wellbeing in real estate.

About Hot Stats
HotStats provide monthly P&L benchmarking for the hotel industry, collecting detailed financial data from over 6,000 hotels in total worldwide from over 100 brands and independent hotels, and provides over 550 different KPIs covering all operating revenues, payroll, expenses, cost of sales and ultimately departmental and total hotel profitability.
RELATED STORIES
Wellness drives record TRevPAR results thanks to pandemic, reports RLA Global


Hotels with wellness revenues exceeding US$1m generated 126 per cent more in total revenue per available room (TRevPAR) in 2021 than those with wellness revenues of less than US$1m, according to the latest Wellness Real Estate Report by RLA Global*.
Report: Leisure shift drives wellness real estate during the pandemic


Hotels with wellness revenues exceeding US$1m (€852,700, £731,700) generated nearly 75 per cent more in total revenue per available room (TRevPAR) in 2020, compared to locations with wellness revenues of less than US$1m.
MORE NEWS
Light Centre secures £1.6 million to launch 10 new wellbeing centres across London
Middleton Enterprises, a UK-based family investment office, has committed £1.6 million (US$2.1 million, €1.9 million) in funding to the Light Centre – a network of medical, therapeutic and wellbeing centres with four locations in London.
Rianna Riego joins Seed to Skin as director of global business development
Rianna Riego, a seasoned professional in the wellness and spa industry, has been appointed director of global business development at Seed to Skin Tuscany, a premier Italian botanical skincare and spa brand.
Rugby legend Jonny Wilkinson joins the speaker lineup at the HCM Summit to share insights into his journey to health and wellbeing
Rugby legend, Jonny Wilkinson has been announced as a keynote speaker for the HCM Summit on 24 October in London.
Woodland Spa to double footprint with £16m revamp, set to complete in August
The Woodland Spa, a premier UK day spa located in Burnley, Lancashire, is set to unveil the results of its £16 million (US$20.5 million, €18.9 million) transformation this August.
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IDEA® Health & Fitness Association and CoverMe Fitness are proud to announce a strategic partnership to address some of the biggest challenges facing fitness professionals and the industry at large, which will launch at IDEA® World Convention in the US this week. [more...]

Prepare your spa for peak season with SpaSoft
The busy season is here, and it's time to shine! Prepare your spa to deliver an exceptional experience to guests who walk through your doors. [more...]
+ More featured suppliers  
COMPANY PROFILES
Aquaform

With thirty years of experience, Aquaform presents a diverse array of water wellness experiences. [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

28-29 Jul 2024

Les Nouvelles Esthetiques Spa Conference 2024

Southern Sun Rosebank, Johannesburg, South Africa
03-05 Sep 2024

ASEAN Patio Pool Spa Expo

IMPACT Exhibition Center, Bangkok, Thailand
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS