The wellness hospitality sector is seeing an unexpected shift, as Minor Wellness hotels outpace their Major Wellness counterparts in revenue and growth, according to the newly released 2024 Wellness Real Estate Mid-Year Report by RLA Global and HotStats.
Drawing on HotStats’ robust financial and operational data, the report reveals a tale of two wellness categories. While Minor Wellness hotels boosted their Average Daily Rate (ADR) by 5% and Total Revenue per Available Room (TRevPAR) by 11% compared to the same period last year, Major Wellness properties faced challenges. The latter category recorded slight drops in key metrics, including a striking 9% decline in Gross Operating Profit per Available Room (GOPPAR).
For Minor Wellness properties, which typically integrate wellness features into existing luxury offerings, the numbers affirm their rising appeal. Meanwhile, Major Wellness hotels, known for their expansive wellness programs, remain a premium asset class with higher TRevPAR but face growing pressure to sustain profitability.
“There are mixed results, with top line growth slowing and bottom-line performance eroding,” said Roger A. Allen, Group CEO of RLA Global. “There are so many economic and global political factors influencing travel habits that a varied performance shouldn’t be a surprise.”
Michael Grove, CEO of HotStats, emphasised the importance of wellness-related revenue streams. “As ADR growth slows, hoteliers will be encouraged by the continued rise of ancillary revenues, such as wellness activities and their strong connection with F&B. Maximising non-room revenue per occupied room will be crucial for profitability in the years ahead,” he said.
The report paints a complex picture of global wellness trends, offering actionable insights for hotel owners, developers, and operators. It underscores the importance of aligning wellness strategies with financial objectives, as the sector continues to evolve in a dynamic economic landscape.
Whether it’s the growing appeal of accessible wellness amenities or the enduring allure of luxury, one thing is clear: wellness isn’t just a trend-it’s a critical factor shaping the future of hospitality.
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