Major Wellness Hotels Excel in Revenue and Profit Growth in 2024, According to Wellness Real Estate Report
The 2025 edition of the Wellness Real Estate Report, produced by HotStats and RLA Global, highlights significant financial performance improvements 2024 among hotels with substantial wellness offerings. The report, which analyzes data from over 12,000 hotels globally, indicates that Major Wellness hotels surpassed their counterparts in revenue and showed notable profit growth, particularly in the upscale segment.
Performance Overview
In 2024, Major Wellness hotels demonstrated a robust top-line performance, with Total Revenue per Available Room (TRevPAR) more than doubling compared to hotels without wellness facilities. These hotels achieved a 56% higher TRevPAR than Minor Wellness hotels and a 108% increase over No Wellness hotels. The report attributes this success to effective revenue management and targeted wellness strategies that appeal to consumer demand.
Minor Wellness hotels, while smaller in scale, led in Revenue per Available Room (RevPAR) and TRevPAR growth, particularly excelling in the luxury and upper upscale categories. Despite a slight decrease in ancillary revenue compared to 2023, these hotels managed to maintain stable occupancy rates and lead in profit conversion.
Financial Insights
The financial performance of Major Wellness hotels was particularly strong in the upscale category, where revenue Key Performance Indicators (KPIs) surged by up to 160%. This group also reported the highest absolute profit figures in this category. Roger A. Allen, Group CEO of RLA Global, noted the impressive recovery and growth of Major Wellness hotels, emphasizing their superior performance in both top-line metrics and bottom-line results compared to Minor Wellness properties.
Occupancy rates across Major and Minor Wellness hotels showed slight increases, while hotels without wellness services experienced a minor decline. The report also highlighted a slight decrease in ancillary spending, which remains a critical component of TRevPAR, especially for Major Wellness hotels, accounting for 56% of the total.
Operational Efficiency and Trends
Major Wellness hotels excelled in revenue generation and operational efficiency. These hotels reported a healthy leisure performance with a profit conversion rate of 49%. Payroll expenses constituted 35% of their leisure income, indicating significant staffing needs, although departmental expenses were relatively low at 16%.
The report also identified several key trends for 2025, including a shift towards foundational health habits in wellness space design, a preference for experiences over opulence in luxury offerings, and an emphasis on sleep quality to enhance guest retention.
Conclusion
The Wellness Real Estate Report 2025 provides a comprehensive analysis of how wellness initiatives influence hotel performance across various segments. With Major Wellness hotels leading in revenue and profit metrics, the report underscores the growing importance of integrating wellness into hotel operations to drive financial success.
The report is available for download here: Wellness Real Estate Report 2025
