Hotels with wellness offerings had strong TRevPAR growth in 2022 as markets benefited from a recovery in demand, hospitality advisor RLA Global said in its Wellness Real Estate Report 2023, released during this year’s International Hospitality Investment Forum (IHIF) in Berlin.

DOWNLOAD your free copy here

Average TRevPAR rose by over 53% on the year in 2022 at hotels with ‘minor wellness’ offerings – that is, those generating less than $1mn or 10% of total revenue from wellness and leisure. TRevPAR climbed by nearly 47%, at ‘major wellness’ properties, where wellness and leisure account for over $1mn or 10% of total revenue. The Americas took the lead in global TRevPAR performance.

Guest spending in 2022 was the highest at hotels with major wellness, which outperformed minor wellness properties in absolute TRevPAR and occupancy. But major wellness hotels often face higher costs, which explains why properties with minor wellness had a 5 percentage point higher GOP-to-revenue ratio, and a 9 percentage point stronger total operating performance last year. 

“Although the category of major wellness hotels takes all the plaudits for property-level top-line performance, it does come with higher operating costs, which results in lower GOP-to-revenue ratio and operating profit performance to total revenue. This is precisely where the minor wellness category indicates potentially better cash returns, [and this is also why] investors need to give a serious consideration to the overall wellness concept of the development at the planning stage,” Roger A. Allen, Group CEO of RLA Global said.

Wellness Real Estate Report 2023_RLA Global

Insights relating to this topic

Adapting Hospitality Assets in the Era of Climate Change: A Strategic Approach

Apr / 2025

The hospitality industry currently stands at a crossroads, grappling with unprecedented challenges posed by the climate crisis. Hotel owners and operators need a pragmatic shift to address these challenges and a forward-thinking strategic approach to adaptation.

Adapting Hospitality Assets in the Era of Climate Change: A Strategic Approach

Apr / 2025

The hospitality industry currently stands at a crossroads, grappling with unprecedented challenges posed by the climate crisis. Hotel owners and operators need a pragmatic shift to address these challenges and a forward-thinking strategic approach to adaptation. Read more

news-article

Outlook for 2025: The Rise of Adaptive Personalisation

Mar / 2025

This year will mark the emergence of adaptive personalisation in hospitality, a trend combining hyper-personalised digital services powered by advanced technology and all-important traditional human interactions between hosts and guests.

Outlook for 2025: The Rise of Adaptive Personalisation

Mar / 2025

This year will mark the emergence of adaptive personalisation in hospitality, a trend combining hyper-personalised digital services powered by advanced technology and all-important traditional human interactions between hosts and guests. Read more

news-article

News relating to this topic

Roger and His Son on Kilimanjaro: A Lesson for Life

Jul / 2025

Our Group CEO, Roger Allen, returned from a Kilimanjaro expedition with his son, who had just turned 18. Roger is shaped by hard work, resilience, and unshakable optimism. Naturally, he wanted to pass these values on to his son. So instead of costly presents, his gift was an experience for life. Climbing Kilimanjaro became an unforgettable father-and-son journey, and a powerful lesson in becoming a good man.

Roger and His Son on Kilimanjaro: A Lesson for Life

Jul / 2025

Our Group CEO, Roger Allen, returned from a Kilimanjaro expedition with his son, who had just turned 18. Roger is shaped by hard work, resilience, and unshakable optimism. Naturally, he wanted to pass these values on to his son. So instead of costly presents, his gift was an experience for life. Climbing Kilimanjaro became an unforgettable father-and-son journey, and a powerful lesson in becoming a good man. Read more

news-article

RLA Global Provides the Data Perspective for Wellness at HotSpa Forum 2025

Jun / 2025

At HotSpa Forum in Paris, RLA Global's Group CEO Roger Allen delivered a keynote titled "Global Data & Trends: Unlocking Financial Success" based on the 2025 Wellness Real Estate Report insights.

RLA Global Provides the Data Perspective for Wellness at HotSpa Forum 2025

Jun / 2025

At HotSpa Forum in Paris, RLA Global's Group CEO Roger Allen delivered a keynote titled "Global Data & Trends: Unlocking Financial Success" based on the 2025 Wellness Real Estate Report insights. Read more

news-article

Get the latest news, insights, and reports from us immediately!

Sign up for our Newsletter

Thank you for subscribing!

search