Credit: RLA Global

For the first time, minor wellness properties are outperforming major wellness on rate, revenue and profit per available room simultaneously
– Roger Allen, group CEO of RLA Global

Wellness hotels generating less than US$1 million (€932,700, £785,200) – or 10 per cent of total revenue from wellness and leisure – recorded the strongest RevPAR and TRevPAR growth in 2025 across categories when compared with 2024, according to the latest Wellness Real Estate Report by RLA Global, produced in partnership with P and L benchmarking firm HotStats.

This is the seventh annual report of its kind.

RevPAR for properties in this category increased by an average of 6 per cent and TRevPAR by 5 per cent year on year.

According to the report authors, this strong performance marked a major shift, as hotels in this category overtook wellness hotels with wellness and leisure revenue exceeding US$1 million (€855,000, £780,000) or more than 10 per cent of revenues  annually.

In absolute ADR (US$250 (€214, £195) vs US$232 (€198, £181)) and RevPAR (US$170 (€145, £133) vs US$161 (€138, £126)) in 2025.

Analysts believe this implies the smaller properties increasingly compete on room rate, compared to the bigger wellness hotels that rely on non-room revenue to drive performance.

Properties in the smaller revenue group also generated higher operating profit (GOPPAR) for the first time  – US$99 (€85, £77) versus US$89 (€76, £69). The report authors say this shows they have a more efficient cost structure that generates better bottom-line performance, despite lower total revenues than those of the major operators.

Roger Allen, group CEO of RLA Global, said: “This year's data marks a genuine inflection point for wellness real estate. For the first time, what we call 'minor' wellness properties are outperforming 'major' wellness on rate, revenue and profit per available room simultaneously. 

"That tells us the market is rewarding a different kind of wellness investment, one that's precise and well-targeted, rather than simply expansive, and it's a signal every owner and investor in this space needs to take seriously.”

Major wellness hotels still performed well, recording the biggest occupancy increase in 2025, reaching 69.4 per cent. Occupancy actually improved across all categories year-on-year, with the occupancy gap between major wellness and those with no wellness-related income decreasing, suggesting continued strength in demand for travel.

Major wellness hotels also generated the best total revenue (TRevPAR), mostly due to non-room revenue accounting for more than half of total TRevPAR. The payroll burden and other cost structure features, however, continue to impact major wellness properties’ profitability.

TRevPAR by region

TRevPAR growth occurred in all geographical markets in 2025. The Americas remained the strongest market overall, with major wellness TRevPAR exceeding US$600 (€513, £468). 

The Middle East showed the strongest gains across categories, with minor wellness TRevPAR up by 9 per cent and major wellness up 8 per cent year on year. The authors point to continued investment in high-end wellness infrastructure as the reason for this momentum.

Africa reflected similar growth, with minor wellness TRevPAR up by 8 per cent.

Europe showed growth across all three categories, with TRevPAR up by 4-5 per cent, but minor wellness outperformed major wellness properties in absolute TRevPAR terms, which the report authors described as a “striking” development.

Asia-Pacific showed steady but modest growth across all categories, up by roughly 3-4 per cent.

The US

The report features a section spotlighting the US market, which showed a widening performance divergence between minor and major wellness hotels.

Minor wellness properties in the US reported the strongest profitability growth, with a year-on-year increase of 6.1 per cent for GOPPAR. In contrast, GOPPAR at US major wellness properties declined 14.7 per cent due to operational costs outpacing revenue growth.

Wellness membership and spa revenue

The report has a new section dedicated to ranking the top 10 performing countries for wellness membership and spa revenue. 

The UK is leading on membership fees per available room at US$15.5 (€13, £12), followed by South Korea, at US$12 (€10, £9).

The top-performing countries in terms of spa treatments per occupied room with the highest absolute revenue are the Maldives (US$38.6 (€33, £30)), France (US$37.6 (€32, £29)) and the US (US$21.4 (€18, £17)). Indonesia showed the strongest year-on-year growth in spa treatment revenue, at 11 per cent.

Trends

The report identified three key trends affecting the wellness real estate market.

• Mixed-use developments are gaining in popularity, with a focus on using the hotels as an anchor for diversified lifestyle infrastructure.
• Single-service spas and gyms are giving way to hybrid wellness hubs. The authors point to changing economics and a broader shift in wellness culture for this change.
• Hotels are using tech-driven guest journeys to close the personalisation gap while maintaining elements of human connection for the experience.
  

Simon Saunders, VP of strategic health and wellness for RLA Global, said: “Personalisation has become the new currency of hospitality. Using data to tailor everything from booking to wellness sessions and post-stay communication creates a smoother, more relevant experience without feeling intrusive. Hotels that consistently apply this approach are more likely to stay top of mind for returning guests.”

*Major, minor and 'no wellness' categories

• Hotels with major wellness – wellness and leisure revenue annually exceeding US$1 million (€855,000, £780,000) or more than 10 per cent of revenues

• Hotels with minor wellness – wellness and leisure revenue annually achieving less than US$1 million (€855,000, £780,000) 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 HotStats

HotStats provides P and L benchmarking for the hotel industry, collecting detailed financial data from more than 13,000 hotels worldwide to provide owners, operators and investors with valuable insights into the financial performance of their properties against their competitors.