RLA Global reports that through the first half
of 2024, hotels with minor wellness
facilities outperformed in revenue and profit.
GLOBAL REPORT – Hotels with Minor Wellness
offerings continued outperforming Major Wellness properties in terms of revenue
and profit generation globally in the first half of this year, with the
wellness hotel segment as a whole recording mixed financial performances,
advisory firm RLA Global said in its 2024 Wellness Real Estate Mid-Year Report.
Minor Wellness hotels boosted ADR by 5% and
TRevPAR by 11% in January-June 2024 from a year earlier, while Major Wellness
properties saw a 3% and 0.4% decline in these indicators, respectively,
according to the report that is based on HotStats data covering Major, Minor
and No wellness hotels of different classes worldwide. Minor Wellness drove
revenue growth in the luxury hotel category, although Major Wellness remained a
premium asset class with much higher TRevPAR.
In terms of profitability on the operating
level, Major Wellness hotels had a 9% fall in GOPPAR in the first six months,
which compared with a 12% and 28% rise for Minor Wellness hotels and properties
with no wellness services, respectively, the report said.
“There are mixed results, with topline growth
slowing and bottom-line performance eroding,” said Roger 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.”
The 2024 Wellness Real Estate Mid-Year Report
processes several industry KPIs – such as ADR, occupancy, TRevPAR, GOPPAR,
operating profit, and F&B performance – to offer vital insights on the
current strengths and weaknesses of this fast-evolving market.