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NEWS
RLA Global: Wellness hotels experience positive growth trend globally in 2023
POSTED 14 Jun 2024 . BY Megan Whitby
Findings show luxury properties with major wellness offerings generated three times more TRevPAR compared to upper-upscale hotels Credit: Melia Koh-Samui

Credit: RLA Global
There was a positive growth trend at hotels with wellness offerings in conjunction with all main year-on-year KPIs
– Roger Allen
RLA Global has published the fifth version of its annual wellness real estate report
The 2024 report indicates wellness hotels showed a positive growth trend globally in 2023
Luxury hotels with major wellness offerings led in terms of Total Revenue per Available Room (TRevPAR)
Upper-upscale properties were the best performers in terms of ADR and TRevPAR growth in all three categories of wellness properties; major, minor and non-wellness
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.
RELATED STORIES
  Robust revenue growth at hotels with wellness offerings worldwide during 2022, finds RLA Global


Revenues at wellness hotels rose sharply in 2022 as demand rebounded, despite economic and geopolitical difficulties.
  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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Uniting the world of spa & wellness
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NEWS
RLA Global: Wellness hotels experience positive growth trend globally in 2023
POSTED 14 Jun 2024 . BY Megan Whitby
Findings show luxury properties with major wellness offerings generated three times more TRevPAR compared to upper-upscale hotels Credit: Melia Koh-Samui
Credit: RLA Global
There was a positive growth trend at hotels with wellness offerings in conjunction with all main year-on-year KPIs
– Roger Allen
RLA Global has published the fifth version of its annual wellness real estate report
The 2024 report indicates wellness hotels showed a positive growth trend globally in 2023
Luxury hotels with major wellness offerings led in terms of Total Revenue per Available Room (TRevPAR)
Upper-upscale properties were the best performers in terms of ADR and TRevPAR growth in all three categories of wellness properties; major, minor and non-wellness
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.
RELATED STORIES
Robust revenue growth at hotels with wellness offerings worldwide during 2022, finds RLA Global


Revenues at wellness hotels rose sharply in 2022 as demand rebounded, despite economic and geopolitical difficulties.
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
Equinox Hotels to launch futuristic wellbeing resort in Neom's luxury coastal region
Fitness-focused hospitality brand and management company Equinox Hotels has announced plans to open a modern new resort on the coast of the Gulf of Aqaba in northwest Saudi Arabia. The venture is part of the ambitious US$500 billion (€462.7 billion, £396 billion) Neom* giga- project.
La Maviglia resort and medi-spa opening in Puglia in 2027, designed by Oppenheim Architecture
Plans have been unveiled for La Maviglia, a new luxury resort and expansive medi-spa set to open in Italy's Puglia region, renowned for its Primitivo wine, in 2027.
Auberge Resorts to land in London in 2025 with two-floor spa inspired by Roman bathing
Auberge Resorts Collection will launch its first UK property and destination spa in Mayfair, London, in 2025, following a deal with UK-based global private investment group Reuben Brothers.
Texas welcomes WorldSprings: a new 46-pool social bathing hot spot and spa
A large new mineral springs destination has launched in Texas, inspired by some of the world’s most famous hot springs – such as Jordan’s Dead Sea, Iceland’s Blue Lagoon and Mexico’s Grutas Tolantongo.
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COMPANY PROFILES
Spa Supply Solutions

Spa Supply Solutions was founded in 2014 by Julie Bevilacqua, a seasoned expert in spa management an [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
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