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.
GLOBAL REPORT
