Credit: RLA Global

Major wellness properties outperformed minor in GOPPAR, while minor had higher year-on-year growth compared to 2023
– Roger Allen, group CEO of RLA Global

Hotels incorporating significant wellness amenities experienced strong top-line recovery in 2024, generating more than twice the Total Revenue per Available Room (TRevPAR) compared to hotels with no wellness income, according to the latest Wellness Real Estate Report by RLA Global, produced in partnership with P and L benchmarking firm HotStats.

The average TRevPAR at major wellness properties was 56 per cent higher than at minor wellness hotels – exceeding the revenue for this KPI at hotels with no wellness by a huge 108 per cent.

Minor wellness hotels – those generating less than US$1 million (€932,700, £785,200) or 10 per cent of total revenue from wellness and leisure – led growth in RevPAR and TRevPAR and were the top performers within the luxury and upper upscale classes. All geographical markets showed significant year-on-year TRevPAR growth in the minor wellness category and properties across Africa and the Middle East recorded double-digit growth, even if costs and inflation may have affected Gross Operating Profit Per Available Room (GOPPAR).

But the most impressive growth has been seen at properties in the major wellness category (sites with annual wellness and leisure income exceeding US$1m or 10 per cent of total revenues). Their assets increased revenue KPIs by up to 160 per cent in the upscale property category and they also fared better than minor wellness sites in the upscale market in terms of absolute profit.

Roger Allen, group CEO of RLA Global, said, “Major wellness hotels came roaring back in 2024, displaying a standout top-line performance in TRevPAR and RevPAR and impressive year-on-year growth rates in the upscale category. The all-important bottom line performance showed major wellness outperforming minor wellness in GOPPAR in absolute terms in 2024, but minor wellness had higher year-on-year GOPPAR growth compared to 2023.”

Rachael Rothman, head of hotels research and data analytics at CBRE, said: “Major wellness assets in the upscale segment are now outperforming even luxury properties in total revenue per room – a clear sign that traditional assumptions about service levels and positioning are being challenged. This shift could have significant implications for how capital is allocated and how future developments are designed.”

Occupancy and on-property spending

Occupancy remained largely stable across all categories, with slight increases at major and minor wellness sites and a slight decrease at hotels with no wellness offerings. But ancillary revenue (which makes up a significant portion of TRevPAR) was marginally lower compared to 2023 – 56 per cent of TRevPAR at major wellness and 38 per cent at minor wellness sites.

Major wellness properties demonstrated a healthy leisure performance, outperforming minor wellness hotels, with a profit conversion of 49 per cent. Payroll represents a significant 35 per cent of their leisure income, but departmental expenses were at 16 per cent, suggesting efficient operational spending.

Major wellness hotels were the only group that increased food and beverage revenue per occupied room in 2024, but only by 1 per cent – indicating that TRevPAR is driven by the rooms and leisure departments.

The researchers highlighted that while minor wellness hotels’ operational efficiency and targeted food and beverage concepts are driving profitability, major wellness properties need to look beyond traditional offerings to drive growth – unlocking more on-property spend in wellness offerings where monetisation still lags.

2025 trends

Trends identified in 2025 include the demand for strong core health habits – lower stress levels and mental clarity – is driving wellness space design, experiences are worth more than opulence in luxury living environments and hotels are prioritising optimised sleep to increase repeat business.

For more information, read the Wellness Real Estate 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 GlobalRLA Global (Resources for Leisure Assets Global) is an international consultancy specialising in leisure and wellbeing in real estate.

About Hot Stats

HotStats provides P and 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.