Latest
issue
GET SPA BUSINESS
magazine
Yes! Send me the FREE digital editions of Spa Business and Spa Business insider magazines and the FREE weekly Spa Business and Spa Business insider ezines and breaking news alerts!
Not right now, thanksclose this window
Uniting the world of spa & wellness
Get Spa Business and Spa Business insider digital magazines FREE
Sign up here ▸
News   Features   Products   Company profilesProfiles   Magazine   Handbook   Advertise    Subscribe  
PRODUCT NEWS
RLA Global: Wellness hotels experience positive growth trend globally in 2023
14 Jun 2024 . BY Megan Whitby
Findings show luxury properties with major wellness offerings generated three times more TRevPAR compared to upper-upscale hotels / Melia Koh-Samui
Findings show luxury properties with major wellness offerings generated three times more TRevPAR compared to upper-upscale hotels / Melia Koh-Samui
There was a positive growth trend at hotels with wellness offerings in conjunction with all main year-on-year KPIs
– Roger Allen
Hotels incorporating wellness amenities experienced a significant boost in Total Revenue per Available Room (TRevPAR) in 2023, according to the latest Wellness Real Estate Report by RLA Global, produced in partnership with P&L benchmarking firm HotStats.

Minor wellness properties – those generating less than US$1 million (€932,700, £785,200) or 10 per cent of total revenue from wellness and leisure – stood out with a 26 per cent average increase in TRevPAR from 2022.

“There was a positive growth trend at hotels with wellness offerings in conjunction with all main year-on-year KPIs, including ADR (average daily rate), RevPAR (revenue per available room), TRevPAR and occupancy,” said Roger Allen, group CEO of RLA Global.

“Minor wellness properties demonstrated great flexibility in optimising operating expenses, contributing to their bottom line. However, performances also indicated a fragmented hotel wellness market that investors should pay close attention to.”

The recent report assesses average hotel performance using data from HotStats about 11,000 hotels worldwide, spanning major, minor and non-wellness categories (see end of story for definitions*).

RLA Global has analysed property-level KPI results, including ADR, occupancy rates, TRevPAR, GOPPAR (gross operating profit per available room) and GOP (gross operating profit), to present how wellness contributes to hotel revenue flows, operating costs, margins and overall profits.

Asset class comparison
Marking RLA Global's fifth annual report, the 2024 publication compares results across luxury, upper-upscale and upscale hotel classes for the first time.

Findings showed luxury properties with major wellness offerings generated three times more TRevPAR compared to upper-upscale hotels but experienced a 4 per cent decline in ADR.

Upper-upscale properties achieved the best ADR and TRevPAR growth in the major, minor and no wellness categories.

“People build and own hotels for very different reasons,” said Rachael Rothman, head of hotels research and data analytics at CBRE. “If it’s to generate a return, the report clearly emphasises that most investors would be better off having an upper-upscale property with some wellness amenities rather than going completely to the high-end of the spectrum.”

Changing guest habits
The report also highlighted trends in departmental revenue generation and profitability. For example, average F&B Revenue Per Occupied Room rose slightly in all three categories last year, driven primarily by restaurant spend.

However, beverage sales declined at major and minor wellness hotels, which also saw room service revenue drop by 13 per cent and 12 per cent respectively.

“The declining bar and room service revenues in city centre hotels reflect trends of guests becoming more health-conscious and drinking less alcohol, while food delivery apps provide guests with more compelling and cheaper options,” said Alex Santamaria, founder of Aware Hospitality.

For more data on hotel performances and in-depth analysis, download the full report here.

*Major, minor and no wellness categories
• Hotels with major wellness – Wellness and leisure revenue annually exceeding US$1 million (€932,700, £785,200) or more than 10 per cent of revenues
• Hotels with minor wellness – wellness and leisure revenue annually achieving less than US$1 million (€932,700, £785,200) or less than 10 per cent of total hotel revenues
• Hotels with no wellness - no wellness-related income.

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 provides monthly P&L benchmarking for the hotel industry, collecting detailed financial data from more than 11,000 hotels worldwide to provide owners, operators and investors with valuable insights into the financial performance of their properties against their competitors.
PRODUCT NEWS
Earthlite announces new investment partner
US-based spa and massage equipment specialist Earthlite has announced a new partnership with investment firm Valesco Industries, as revealed by CEO Jim Chenevey.
Aromatherapy Associates unveils luxury Bath Butler Service for spa and hotel partners
Aromatherapy Associates has unveiled an innovative new in-room wellbeing offering: the Bath Butler service.
Knesko Skin announces launch of Gold Repair Body Collection
Knesko Skin has strengthened its gemstone-infused Gold Repair Collection with a new bodycare line, including a body cream, serum and signature collagen masks for hands and feet.
Wildsmith Skin teams up with Serenbe for US market debut
Award-winning US wellness community Serenbe in Atlanta, Georgia, has announced a partnership with British wellness brand Wildsmith Skin to bring its nature-inspired skincare and spa treatments to the states.
Dream Machine founders Kevin Finel and Brice Battung target spa industry
Two hypnosis professionals from France, Kevin Finel and Brice Battung, are looking to transform spa relaxation experiences with their Dream Machine innovation.
TempleSpa showcases new range with treatments that ‘spark energy and joy’
British spa and skincare brand TempleSpa has introduced two treatments to showcase its new Energy & Joy body and home range.
Circadia unveils Pre & Post Biotic Nourishing Mask with Royal Tea
Professional US skincare brand Circadia has created a new face mask to protect, restore and nourish the skin and its microbiome.
Dornbracht's Serenity Sky taps into TCM and Kneipp therapy
"Weightless, powerful, refreshing," is how Dornbracht's CEO Stefan Gesing describes the therapeutic water experiences of the company's new Serenity Sky shower panel
Esse Skincare introduces sun-activated Pro-Sun D serum
Vitamin D is a cornerstone of skin health, but with sunlight being our primary natural source, it's crucial to exercise caution against overexposure to potent rays.
Kloodos unveils futuristic Cell Stack PBM pod
Kloodos has secured the global distribution rights for a futuristic photobiomodulation (PBM) pod that also emits negative ions and has been designed to create a float-like feeling.
Ojmar introduces battery-free electronic locker to cut carbon footprints in health clubs and spas
Smart lock manufacturer Ojmar has released the OTS20 Batteryless – the first battery-free electronic locker lock on the market. The smart lock is powered by Ojmar's patented 'Push Power' technology, which harnesses the energy created by a simple push of the nozzle.
Elevate your offering with the new MSpa Duet
As a globally recognised provider of luxury spa solutions, MSpa is dedicated to bringing high-end spa experiences into more spa and wellness businesses and homes.
+ More products  

COMPANY PROFILES
Comfort Zone

Comfort Zone’s comprehensive face and body range allows clients to experience memorable facials and [more...]
Yon-Ka

As pioneers in aromatherapy since 1954 and founders of the Yon-Ka brand, the Multaler Laboratories, [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  
 
ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
 
SPA BUSINESS
SPA OPPORTUNITIES
SPA BUSINESS HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024
Uniting the world of spa & wellness
Get Spa Business and Spa Business insider digital magazines FREE
Sign up here ▸
News   Products   Magazine   Subscribe
PRODUCT NEWS
RLA Global: Wellness hotels experience positive growth trend globally in 2023
14 Jun 2024 . BY Megan Whitby
Findings show luxury properties with major wellness offerings generated three times more TRevPAR compared to upper-upscale hotels / Melia Koh-Samui
There was a positive growth trend at hotels with wellness offerings in conjunction with all main year-on-year KPIs
– Roger Allen
Hotels incorporating wellness amenities experienced a significant boost in Total Revenue per Available Room (TRevPAR) in 2023, according to the latest Wellness Real Estate Report by RLA Global, produced in partnership with P&L benchmarking firm HotStats.

Minor wellness properties – those generating less than US$1 million (€932,700, £785,200) or 10 per cent of total revenue from wellness and leisure – stood out with a 26 per cent average increase in TRevPAR from 2022.

“There was a positive growth trend at hotels with wellness offerings in conjunction with all main year-on-year KPIs, including ADR (average daily rate), RevPAR (revenue per available room), TRevPAR and occupancy,” said Roger Allen, group CEO of RLA Global.

“Minor wellness properties demonstrated great flexibility in optimising operating expenses, contributing to their bottom line. However, performances also indicated a fragmented hotel wellness market that investors should pay close attention to.”

The recent report assesses average hotel performance using data from HotStats about 11,000 hotels worldwide, spanning major, minor and non-wellness categories (see end of story for definitions*).

RLA Global has analysed property-level KPI results, including ADR, occupancy rates, TRevPAR, GOPPAR (gross operating profit per available room) and GOP (gross operating profit), to present how wellness contributes to hotel revenue flows, operating costs, margins and overall profits.

Asset class comparison
Marking RLA Global's fifth annual report, the 2024 publication compares results across luxury, upper-upscale and upscale hotel classes for the first time.

Findings showed luxury properties with major wellness offerings generated three times more TRevPAR compared to upper-upscale hotels but experienced a 4 per cent decline in ADR.

Upper-upscale properties achieved the best ADR and TRevPAR growth in the major, minor and no wellness categories.

“People build and own hotels for very different reasons,” said Rachael Rothman, head of hotels research and data analytics at CBRE. “If it’s to generate a return, the report clearly emphasises that most investors would be better off having an upper-upscale property with some wellness amenities rather than going completely to the high-end of the spectrum.”

Changing guest habits
The report also highlighted trends in departmental revenue generation and profitability. For example, average F&B Revenue Per Occupied Room rose slightly in all three categories last year, driven primarily by restaurant spend.

However, beverage sales declined at major and minor wellness hotels, which also saw room service revenue drop by 13 per cent and 12 per cent respectively.

“The declining bar and room service revenues in city centre hotels reflect trends of guests becoming more health-conscious and drinking less alcohol, while food delivery apps provide guests with more compelling and cheaper options,” said Alex Santamaria, founder of Aware Hospitality.

For more data on hotel performances and in-depth analysis, download the full report here.

*Major, minor and no wellness categories
• Hotels with major wellness – Wellness and leisure revenue annually exceeding US$1 million (€932,700, £785,200) or more than 10 per cent of revenues
• Hotels with minor wellness – wellness and leisure revenue annually achieving less than US$1 million (€932,700, £785,200) or less than 10 per cent of total hotel revenues
• Hotels with no wellness - no wellness-related income.

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 provides monthly P&L benchmarking for the hotel industry, collecting detailed financial data from more than 11,000 hotels worldwide to provide owners, operators and investors with valuable insights into the financial performance of their properties against their competitors.
If you would like to get each issue of Spa Business and Spa Business insider magazines sent direct to you for FREE, plus the weekly Spa Business and Spa Business insider ezines, sign up now!
PRODUCT NEWS
Earthlite announces new investment partner
US-based spa and massage equipment specialist Earthlite has announced a new partnership with investment firm Valesco Industries, as revealed by CEO Jim Chenevey.
Aromatherapy Associates unveils luxury Bath Butler Service for spa and hotel partners
Aromatherapy Associates has unveiled an innovative new in-room wellbeing offering: the Bath Butler service.
Knesko Skin announces launch of Gold Repair Body Collection
Knesko Skin has strengthened its gemstone-infused Gold Repair Collection with a new bodycare line, including a body cream, serum and signature collagen masks for hands and feet.
Wildsmith Skin teams up with Serenbe for US market debut
Award-winning US wellness community Serenbe in Atlanta, Georgia, has announced a partnership with British wellness brand Wildsmith Skin to bring its nature-inspired skincare and spa treatments to the states.
Dream Machine founders Kevin Finel and Brice Battung target spa industry
Two hypnosis professionals from France, Kevin Finel and Brice Battung, are looking to transform spa relaxation experiences with their Dream Machine innovation.
TempleSpa showcases new range with treatments that ‘spark energy and joy’
British spa and skincare brand TempleSpa has introduced two treatments to showcase its new Energy & Joy body and home range.
Circadia unveils Pre & Post Biotic Nourishing Mask with Royal Tea
Professional US skincare brand Circadia has created a new face mask to protect, restore and nourish the skin and its microbiome.
Dornbracht's Serenity Sky taps into TCM and Kneipp therapy
"Weightless, powerful, refreshing," is how Dornbracht's CEO Stefan Gesing describes the therapeutic water experiences of the company's new Serenity Sky shower panel
Esse Skincare introduces sun-activated Pro-Sun D serum
Vitamin D is a cornerstone of skin health, but with sunlight being our primary natural source, it's crucial to exercise caution against overexposure to potent rays.
Kloodos unveils futuristic Cell Stack PBM pod
Kloodos has secured the global distribution rights for a futuristic photobiomodulation (PBM) pod that also emits negative ions and has been designed to create a float-like feeling.
Ojmar introduces battery-free electronic locker to cut carbon footprints in health clubs and spas
Smart lock manufacturer Ojmar has released the OTS20 Batteryless – the first battery-free electronic locker lock on the market. The smart lock is powered by Ojmar's patented 'Push Power' technology, which harnesses the energy created by a simple push of the nozzle.
Omorovicza celebrates Claridge’s partnership with exclusive two-hour ritual inspired by ballet
Hungarian skincare brand Omorovicza has introduced a signature treatment to mark its new partnership with the spa at the iconic Claridge’s hotel in London.
+ More products   
 
COMPANY PROFILES
Comfort Zone

Comfort Zone’s comprehensive face and body range allows clients to experience memorable facials and [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