INTERNATIONAL
REPORT — Hotels with major wellness offerings (those receiving over $1 million
or 10% of total revenue from wellness and leisure) had a standout top-line
performance in revenue generation globally in 2024, generating more than twice
as much TRevPAR as hotels with no wellness programs, according to RLA Global’s
Wellness Real Estate Report.
“Major
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,” said Roger Allen, group CEO of RLA Global. “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.”
The average
TRevPAR at major wellness properties was 56% higher than at minor wellness
hotels and exceeded that of hotels with no wellness services by a striking
108%. However, minor wellness posted the highest rise in RevPAR and TRevPAR
growth in 2024.
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.
Rachael Rothman
According to
the report, major wellness assets increased revenue KPIs by up to 160% in the
upscale hotel category and also fared better in upscale in terms of absolute
profit.
“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,” said
Rachael Rothman, head of hotels research and data analytics at CBRE. “This
shift could have significant implications for how capital is allocated and how
future developments are designed.”
Occupancy
rates remained largely stable across the board in 2024, slightly up at major
and minor wellness hotels and slightly down at hotels with no wellness
offerings. Ancillary spending was lower than in 2023, accounting for 56% of
TRevPAR at major wellness and 38% at minor wellness.
“Occupancy
is holding steady, showing that travel demand remains strong,” said Michael
Grove, CEO of HotStats. “But hotels can’t just ride the wave anymore — with
revenue growth starting to soften, the real challenge is unlocking more on
property spend, especially in wellness, where guest demand is high but
monetization still lags.”
Major
wellness properties had a healthy leisure performance with a profit conversion
of 49%, outperforming minor wellness hotels. Payroll represents 35% of leisure
income, suggesting significant staff requirements, but departmental expenses
are minimal at 16%, reflecting efficient operational spending. Major
wellness was also the only group that could increase F&B revenue per occupied
room in 2024, but just by 1% – suggesting that the rooms and leisure
departments mainly drive TRevPAR.
“As wellness
offerings evolve, it’s clear that operational efficiency and targeted F&B
concepts in minor wellness properties are driving profitability, while major
wellness must look beyond traditional offerings to sustain growth,” said Edward
Harvey, director at Elevate FB.
Important
industry trends the Wellness Real Estate Report identified in 2025 include the
return to foundational health habits increasingly driving wellness space
design, experiences outvaluing opulence in luxury living, and hotels
prioritizing sleep to repeat business, among others.
RLA Global’s
report was published in partnership with HotStats for the 6th straight year in
2025. The annual Wellness Real Estate Report and its mid-year updates evaluate
average hotel performance based on HotStats data covering over 11,000 major,
minor and no wellness hotels of different classes worldwide.