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What Wellness Features Provide the Best Returns?

By Simon Saunders VP of Strategic Health & Wellness, RLA Global | November 2024

Spa services and wellness treatments offer very high ROI

Wellness features have undoubtedly become a key differentiator in the hospitality industry in all markets for attracting guests and driving revenue. But some features may provide better returns on investment (ROI) than others and selecting the most suitable for a property requires a considered approach.

The continuous evolution of wellness facilities, amenities, and services likely contributed to the whopping 18.1% annual growth the Global Wellness Institute (GWI) detected in the wellness real estate sector in 2020-23 and would also support the 15.8% annual expansion GWI predicts for 2024-29.

The strong performance and rosy outlook of the sector have prompted a huge increase in new wellness-driven assets globally. However, companies must be prudent in their approach to new wellness projects – especially when it comes to choosing appropriate features. Before we look at the capability of specific features to fetch ROI, here are some general factors investors, developers, and operators should also consider.

Wellness Affects All Hotel Departments

Gone are the days when wellness only meant amenities and services in dedicated sections of the hotel, such as spas or gyms. These are still key, but it has never been more important for guests to have a wide variety of features, ranging from in-room wellness amenities, healthy food and drink options, health-focused programming, outdoor activities, and even social or cultural offerings to connect with the local community, enabling the guest to maintain their wellness habits or health style.

All this is to say that wellness is a concept that permeates all hotel departments. Investors and operators only looking at the profit and loss statement of the spa or wellness department may not get a full picture of the overall value of wellness through the property. TRevPAR may be a good metric to assess this contribution, as it can show, for instance, that spa or wellness guests tend to spend more on food and beverage and typically stay longer than other guests.

Taking this holistic effect of wellness into account in the planning phase can be beneficial to investors and developers. It requires an understanding of how wellness features impact the performance of each department and the entire hotel, and may make revenue and cost calculations more complex, but can ultimately help better determine profit or ROI plans.

Combining or integrating different wellness services can not only improve customer experience but may also allow operators to boost cross-sell or upsell efficiency. CBD drinks or post-workout protein shakes can replace traditional options like cola and beer in the guest’s mini bar, while pop-up ice baths after personal training sessions offer a unique recovery experience. Pre-selling wellness experiences before guests’ stays as part of an inclusive package or offering add-on auxiliary treatments on the spot also helps drive revenues.

Massages, facials or holistic therapies, directly generate additional revenue for hotels and resorts.

Less Can Be More in Wellness Features

Hospitality firms should aim to offer a curated package of wellness amenities that contribute to ROI on the property level and match hotel and guest profiles. Needless to say, what works at one property may not be applicable to another with a different concept. Selecting the appropriate services to support the rationale behind the property is key.

In any case, the bigger the better doesn’t necessarily work in the case of wellness facilities or offerings. Hotels with extensive wellness can achieve better topline performance due to higher average daily rates and leisure revenues compared to properties with minor wellness offerings, but that usually comes with higher energy, staff, and other operation costs.

Data from P&L benchmarking firm HotStats show that minor wellness hotels – those generating less than $1mn or 10% of total revenue from wellness – had higher TRevPAR growth in 2023 than major wellness hotels. In terms of asset classes, upper upscale properties outperformed luxury hotels in ADR and TRevPAR growth in all wellness size categories.

Hotel Settings Help Decide on the Approach

Another factor investors or developers should consider is the type and location of the asset. For example, urban hotels in densely populated cities and resorts in remote destinations tend to have different characteristics that influence the selection of suitable wellness features.

City hotels benefit from better accessibility and the proximity to local cultural, sports, and culinary experiences. Walk-in customers can support revenue generation in in-house restaurants and hotel gyms or spas. However, city hotels may have limited space for wellness amenities or exercise equipment and could also lack sufficient green spaces for outdoor activities, necessitating them to promote wellness in other areas of the property.

Resorts may be less accessible to travellers and could not rely on walk-in customers. They typically operate larger and more varied amenities, usually in a natural setting, creating more opportunities for outdoor activities. Resort guests tend to stay longer, allowing operators to offer wellness services that require at least several days, such as personalized, result-orientated health programmes.

Longevity features for guests who follow daily routines to stay healthy longer provide an example of potentially different approaches. City hotels without a spa may offer in-room longevity amenities, like state-of-the-art sleeping technologies or access to in-room exercise. Resorts can move to “hard” features, with advanced wellness facilities supported by on-site medical practitioners.

Hosting dedicated wellness retreats or programs offers an opportunity to expand into niche markets.

Wellness Features With High ROI Impact

Spa services, fitness centres, healthy dining, and in-room wellness amenities top the list in terms of ROI, but emerging trends like wellness retreats, sustainable practices, and sleep programmes also offer significant opportunities to boost revenue and meet demand. In the following section, we look at why and how these features can contribute to profitability and returns.

  • Spa services and wellness treatments – ROI impact: very high

Spa services, including massages, facials, or holistic therapies, directly generate additional revenue for hotels and resorts. Guests are increasingly seeking relaxation and wellness treatments during their stay, making it a popular upsell. Related costs tend to be medium to high, depending on the facility and staff requirements. In terms of overall impact, spa services and wellness treatments can drive guest satisfaction, generate repeat bookings, and allow premium pricing for wellness-focused packages.

  • Fitness amenities and personal training – ROI impact: high

Well-equipped fitness centres with 24/7 access or personal training sessions are a significant draw for health-conscious travellers. They can justify higher room rates and increase guest loyalty, especially for long-term or repeat customers. These features come with medium-level costs, depending on size and equipment. They appeal to a wide range of guests, improve customer satisfaction, and can be marketed as part of wellness retreats or fitness-focused packages.

  • Healthy dining options – ROI impact: high

Offering healthy, organic, or locally sourced meals caters to the growing number of travellers seeking nutritious options. This can include specialized menus for different dietary preferences, which not only enhances guest experience, but can also lead to increased spending in restaurants. Costs tend to be on the medium level, as these dining options may require changes in sourcing and menu development. Considering the overall impact, this feature has a positive effect on guest satisfaction and F&B spend, and also provides a strong selling point for wellness-oriented travellers.

  • In-room wellness amenities – ROI impact: high

Providing in-room wellness features like yoga mats, aromatherapy kits, sleep-enhancing products or access to meditation apps creates a personal wellness experience for guests. These amenities have minimal or low costs, as many of these items can be relatively inexpensive to provide. In-room amenities improve guest experience and satisfaction and can also justify higher room rates, especially in premium or wellness-themed rooms.

  • Wellness retreats and programs – ROI impact: high

Hosting dedicated wellness retreats or programs, such as yoga escapes, detox programs, or mindfulness workshops, offers an opportunity to expand into niche markets. These programs typically command higher rates and can be marketed as premium experiences. Related costs are medium to high, as such retreats and programs often require planning, partnerships with wellness professionals, and specialized offerings. In terms of overall impact, they can also increase revenue through package deals, attract new customer segments, and improve off-season occupancy.

  • Sustainable and eco-friendly practices – ROI impact: moderate to high

Many travellers today prefer hotels with sustainable practices. Features like eco-friendly amenities, water conservation, energy-efficient operations, and organic and sustainable products in spas and restaurants appeal to a growing segment of eco-conscious guests. Costs are medium to high, depending on the infrastructure and practices implemented. Eco-friendly practices can enhance brand reputation and boost loyalty among environmentally conscious guests, possibly leading to repeat business.

  • Hydrotherapy and thermal facilities – ROI impact: high

Pools, saunas, steam rooms and other thermal facilities are wellness staples that are highly appealing to guests. These features offer relaxation, detoxification, and rejuvenation experiences, encouraging guests to extend their stay or book premium wellness packages. They usually have high costs due to the infrastructure needed, but this can be offset by premium pricing. Hydrotherapy and thermal features increase revenue from spa and wellness packages and can enhance overall guest experience, often justifying higher room rates.

  • Outdoor wellness activities – ROI impact: moderate to high

Offering guided nature walks, hiking, outdoor yoga, and water-based activities like paddleboarding or kayaking is a low-cost way to provide high-value wellness experiences. These activities align with the growing trend of eco-tourism and the rising demand for outdoor adventures. Costs are low to medium, depending on the need for guides or equipment. These features can improve guest satisfaction and provide unique selling points for properties, especially for those in a natural or resort setting.

  • Sleep programs – ROI impact: moderate to high

A curated sleep experience through special bedding, blackout curtains, soundproofing, sleep-inducing amenities or partnerships with sleep wellness brands can significantly enhance a guest’s stay. Related costs are on a medium level, as room upgrades and amenities require investment. In terms of overall impact, sleep programs can improve customer satisfaction and justify higher room rates, especially in luxury hotels or wellness resorts.

  • Wellness concierge services – ROI impact: moderate

Providing a dedicated wellness concierge who can help guests create personalized wellness itineraries, book treatments, suggest fitness options or guide mindfulness practices elevates the guest experience. This service differentiates the property and encourages repeat visits. Costs typically remain on a medium level, depending on staffing and the services offered. Concierges can drive wellness engagement and enhance the perceived value of wellness packages.

The Best Features Lift Guest Experience

In summary, the true value of wellness at property level can be best assessed in a holistic approach as offerings can affect all hotel departments. Finding the most suitable wellness features may depend on several things, including hotel and guest profiles as well as the type and location of the property.

The wellness facilities, amenities, and services that offer the highest ROI for hospitality businesses are those that directly generate additional revenue, partially through upselling or premium packages, and enhance guest experience, leading to higher rates of repeat bookings. The best features also provide strong returns by promoting brand loyalty and increasing the competitive edge of the property.

Mr. Saunders

Simon Lee Saunders serves as RLA Global's VP of Strategic Health & Wellness. His experience has been crafted through both professional and personal well-being experiences that distinguish his ability to connect with the most diverse projects. Mr. Saunders led the development of a chain health clubs and spas for Europe's largest operator of thermal spas with Danubius Hotels Group. In the capacity of sales and marketing for the pre-opening of multiple stand-alone and hotel-based health clubs for Hilton Hotels in the UK. he worked with the iconic Gold's Gym brand in CEE, Russia & Iberia providing management, operational training and support for GMs & franchisees across the territory. His health club experience also includes site selection, lease negotiations, tender, planning and fit-out processes for wellness clubs around the world. On a personal level Mr. Saunders went through his own personal well-being journey in 2011, a year after running the world's toughest footrace the Marathon de Sables in the Sahara, he overcame the challenge of cancer. Educated at the University of West London in Leisure & Finance, he is a qualified personal trainer and athletics coach. He volunteers with The Princes Trust. Extended Biography & Contact Information

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If you choose to purchase a subscription, member subscription payments can be made in U.S. Dollars, as well as a variety of international currencies. Membership terms are Annual Recurring, and Monthly Recurring. The Annual Recurring subscription is an annual commitment and subscribers will be charged each consecutive billing cycle. Annual Recurring subscriptions can be cancelled after the first billing cycle and within 30-days of the billing date for a full refund. Monthly Recurring subscriptions are ongoing and subscribers will be charged each consecutive monthly billing cycle. Monthly Recurring subscriptions can be cancelled after the first month and within 7 days of the monthly billing cycle for a full refund.

12. PAYMENT AUTHORIZATION

Payment for the services provided to you in, at, through or in association with HotelExecutive may be made by automatic credit card, debit card, direct debit, bankwire or Paypal and other approved payment means offered in, at, through or in association with HotelExecutive, and you hereby authorize HotelExecutive and its agents to transact such payments on your behalf.

You hereby authorize HotelExecutive's Internet Payment Service Provider to charge your credit card to pay for your membership to HotelExecutive. You further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card for any and all purchases of products, services in association with HotelExecutive. You agree to be personally liable for all charges incurred by you in association with your access or other use of any content provided by HotelExecutive or any third party in association with HotelExecutive. You acknowledge and agree that your liability for all such charges shall continue after termination of your access or any type of membership arrangement with HotelExecutive.

In the event that you have chosen to have your membership automatically rebilled, unless and until you notify HotelExecutive that you wish to cancel or terminate your membership to HotelExecutive, you hereby agree and authorize HotelExecutive's Internet Payment Service Provider to automatically renew your membership to HotelExecutive on a continuing basis and to charge your credit card (or other payment means you have selected) to pay for the ongoing cost of your membership. You hereby further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card (or other approved payment means you have selected) for any and all purchases of products, services and entertainment provided to in, at, through or in association with HotelExecutive.

13. PRIVACY POLICY

The following is the Privacy Policy for HotelExecutive

We can be reached via telephone, email, or online at our contact page. When you visit our site we do not log any information regarding your domain or email address. Information Sharing: We do not share user information with any third parties other than via press release distribution as described below.

Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

Cookies: Our system requires the use of cookies to enable the user to log back into our website to access information from the newswire, without having to log in each time using the required username and password.

If you do not want to receive email from us in the future, please let us know by following instructions included in our communication with you. Users who supply us with telephone numbers online may receive telephone contact from us regarding their account, or informing them of new products and services available on the HotelExecutive website. If you do not wish to receive such telephone calls, please edit your account and remove your phone number from your account profile. This can be done from your user account menu.

Ad Servers: We do not partner with or have any relationship with any ad server companies. From time to time, we may use customer information for new uses not previously disclosed in our privacy notice. If our information practices change at any time, we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Upon request we provide site visitors with access to all information (including proprietary information) that we maintain about them. Users can access this information by logging in to their account.

Security: We always use industry-standard encryption technologies while transferring and receiving user data exchanged with our site. We have appropriate security measures in place in our physical facilities to protect against the loss, misuse, or alteration of information that we have collected from you on our site. We do not store credit card information in our systems.

If you feel that this site is not following its stated information policy, you may contact us.

Kenneth Heymann
Paul McElroy
Wendy Hansen
Chintan Dadhich
Cessie Cerrato
Robert H Rechtermann
Rachel Fischbach
Robert O'Halloran
Ben Schumacher
Kirk Pederson
Sneha Thuppul
Ashley Labrosse
Coming up in March 1970...