Major Wellness Hotels Stage Top-Line Comeback in 2024
Minor Wellness posted the highest rise in RevPAR and TRevPAR growth during 2024 and were the best performers in the Luxury and the Upper Upscale categories.
Occupancy remained largely stable across the board in 2024. Average ancillary revenue, a key part of TRevPAR, was somewhat lower than in 2023.
Major Wellness outperformed Minor Wellness in leisure performance and was the only group that could also raise per-room F&B revenue, albeit just slightly.
Minor Wellness continued to lead in profit conversion, although Major Wellness hotels sharply improved GOPPAR results in the Upscale category
Hotels with Major Wellness offerings –– those receiving over $1mn or 10% of total revenue from wellness and leisure –– had a strong performance in revenue generation globally in 2024, hospitality advisor RLA Global said in its latest Wellness Real Estate Report, published in partnership with P&L benchmarking firm HotStats for the 6th year in 2025.
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%. Minor Wellness continued to lead in RevPAR and TRevPAR growth in 2024, although Major Wellness assets increased revenue KPIs by up to 160% in the Upscale hotel category, according to the report findings. Major Wellness hotels also fared better in Upscale in terms of absolute profit.
'Major Wellness 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. 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,' Roger A. Allen, Group CEO of RLA Global, said.
'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, Head of Hotels Research and Data Analytics at CBRE, said.
Occupancy rates remained largely stable in 2024, slightly up at Major and Minor Wellness hotels and a bit down at hotels with no wellness offerings. Ancillary spending was somewhat lower than in 2023, and accounted for 56% of TRevPAR at Major Wellness and 38% at Minor Wellness.
'Occupancy is holding steady, showing that travel demand remains strong. 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 monetisation still lags,' Michael Grove, CEO of HotStats, said.
Major Wellness properties had a healthy leisure performance with a profit conversion of 49%. Payroll represents 35% of their leisure income, suggesting significant staff requirements, but departmental expenses are minimal at 16%, reflecting efficient operational spending. Major Wellness was the only group that could increase F&B revenue per occupied room in 2024, but just by 1% – suggesting that TRevPAR is mainly driven by the rooms and leisure departments.
'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,' Edward Harvey, Director at Elevate FB, said.
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 prioritise sleep to repeat business, among others.
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. Processing property-level KPI results, such as ADR, occupancy rates, TRevPAR, GOPPAR and GOP, the report and its updates present how wellness contributes to hotel revenue flows and operating costs, and what effects it has on margins and profits.
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About RLA Global
RLA Global is a leading boutique advisory firm, specializing in resorts and destinations, mixed-use developments, and complex hospitality and tourism assets. We engage projects from a highly strategic perspective right down to the finest details, encompassing the entire life-cycle of leisure and hospitality assets. The firm has a proven track record of 100+ high-profile projects, across four continents. RLA Global is recognized by the European Travel Award as one of the Best International Leisure and Hospitality Advisors. www.rlaglobal.com
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