RLA Global Discusses Hotel Growth Trajectories with Industry Leaders

The hospitality industry is experiencing a fundamental shift as wellness emerges as a primary revenue driver, with 'Major wellness' properties generating 56% higher Totel Revenue per Available Room (TRevPAR) compared to 'Minor wellness' offerings and 108% higher performance versus 'No wellness' properties. For more details, please download the 2025 Wellness Real Estate Report. 

The discussion brought together Rachel Rothman, Head of Hotels Research and Data Analytics at CBRE; Michael Grove, CEO of HotStats; Michael Newcombe, Vice President of Wellness at Four Seasons Hotels and Resorts; and Barry van Doornewaard, CEO and Founder of FreshBed, moderated by Roger Allen from RLA Global to unpack what's really driving these results.

See our two-minutes Preview for the "From Sleep to Success" webinar here. 

Mike Grove shared a key insight early on: wellness has flipped the traditional hotel model. "Sometimes wellness is actually the primary revenue driver and rooms, food and beverage are the secondary revenue drivers," he revealed. Meanwhile, Michael Newcombe shared how Four Seasons properties have exploded from single treatment rooms to 10-15 treatment facilities in just two decades.

Barry highlighted that 92% of travelers consider comfortable beds essential for good hotel experiences, with 91% willing to pay up to 10% more for sleep-enhancing accommodations. Michael Newcombe stressed the importance of getting the "brilliant basics" right first, noting that hotels must perfect fundamentals of service and product before moving to "high altitude" offerings.

Rachael pointed out how COVID changed everything. Guests invested heavily in home wellness setups, and now hotels are competing against people's upgraded bedrooms. "If hotel facilities aren't up to the same standard guests have at home, they're going to be disappointed," she warned.

Mike sees massive untapped potential in upgradeable sleep experiences across all hotel segments - not just luxury properties. The revenue opportunity is there, but most hotels are still playing it safe instead of getting creative.

With the wellness real estate market projected to reach $900 billion by 2030, the panel concluded that hotels treating sleep quality as a strategic choice rather than operational consideration will gain competitive advantage. 

Watch the full "From Sleep to Success" webinar at RLA Global HERE. It is packed with genuine and actionable ideas!