The 2024 Wellness Real Estate Mid-Year Report, released by RLA Global in collaboration with HotStats, highlights the shifting dynamics within the wellness hospitality sector. The report uncovers a surprising profitability trend, with Minor Wellness hotels outperforming their Major Wellness counterparts in revenue and growth during the first half of the year. Powered by HotStats’ financial and operational data, this analysis provides critical insights into the evolving market.
The report highlights the mixed financial performance of wellness hotels globally. Hotels categorized under Minor Wellness outperformed their Major Wellness counterparts, boosting Average Daily Rate (ADR) by 5% and Total Revenue per Available Room (TRevPAR) by 11% compared to the same period last year. In contrast, Major Wellness properties experienced slight declines in these key metrics, with a notable 9% drop in Gross Operating Profit per Available Room (GOPPAR).
These findings underline the growing value proposition of Minor Wellness offerings in the luxury hotel category while reaffirming Major Wellness properties’ status as a premium asset class commanding higher TRevPAR.
“There are mixed results, with topline growth slowing and bottom-line performance eroding,” Roger A. Allen, Group CEO of RLA Global, said. “There are so many economic and global political factors influencing travel habits that a varied performance shouldn’t be a surprise,” he added.
Michael Grove, CEO of HotStats, commented “As ADR growth slows, hoteliers will be encouraged by the continued rise of ancillary revenues, such as wellness-related activities and their strong connection with F&B. Maximizing non-room revenue growth per occupied room will be crucial for maintaining and increasing profitability in the years ahead, with wellness undoubtedly playing a significant role.”
The report, developed from HotStats data, provides critical insights into global performance trends, offering hotel owners, developers, and operators a clear roadmap for aligning wellness strategies with financial goals.
For hotel investors and operators seeking to harness the power of financial intelligence, explore the detailed findings of the 2024 Wellness Real Estate Mid-Year Report.