EMPLOYERS: POST A JOB
Free ezines & magazines
Jobs News Video Training Products Magazine Spa Business spa-kit Handbook What's on Advertise Subscribe
Catalogue gallery
More catalogues
Diary dates
Powered by leisurediary.com
21-24 Sep 2020
Messe Stuttgart, Germany
01-02 Oct 2020
ExCeL London, United Kingdom
01-04 Oct 2020
Kuala Lumpur Convention Centre (KLCC), Kuala Lumpur, Malaysia
07 Oct 2020
Online, Singapore, Singapore
11-12 Oct 2020
ExCeL London, London, United Kingdom
11-12 Oct 2020
The Houghton Hotel, Johannesburg, South Africa
15-17 Oct 2020
Jakarta Convention Center (JCC), Jakarta, Indonesia
19-21 Oct 2020
INTEX Osaka, Osaka, Japan
Investors must thoroughly assess financial impacts of wellness investments, says new wellness real estate report
By Megan Whitby 07 Sep 2020
Data showed that resorts and hotels with major wellness operations generated 43 per cent higher TrevPAR in 2019, than their peers with no wellness offering
Wellness offerings can significantly boost hotel revenues and profits, but developers and investors must carefully assess their impacts on real estate to achieve targeted returns, according to a recent industry study.

Conducted by Resources for Leisure Assets, (RLA), The Wellness Real Estate Report uses market data from P&L benchmarking company, HotStats, on the financial performance of 3,200 international hotels of all classes, to provide insights on how wellbeing and wellness may contribute to the existing business or planned projects of investors and developers on the revenue and profit levels.

“There’s great growth potential from the sector, but investors face challenges in assessing the overall value of the wellness offering and a transparent internal rate of return," said Roger Allen, Group CEO at RLA.

Data showed that resorts and hotels with major wellness operations generated 43 per cent higher total revenues per available room (TrevPAR) in 2019, than their peers with no wellness offerings.

However, it also indicated that simply adding wellness or wellbeing features doesn't necessarily translate into higher TrevPAR, as hotels and resorts with minor wellness offerings recorded almost 6 per cent less TRevPAR compared to those with no wellness facilities at all.

Furthermore, the paper highlights that running large wellness operations doesn’t automatically lead to better bottom-line performance, as associated expenses may eat away at profits.

The data indicated that hotels with significant wellness offerings achieved lower operating profit conversion than those with minor or no wellness operations in 2019.

According to Allen, the main takeaways from the paper for potential investors and developers in wellness real estate are as follows:
  • Make sure to select the right business model for wellness facilities and services

  • Determine how much of the real estate should be dedicated to wellness

  • Don’t underestimate the importance of location

  • Ensure there is a wellbeing or wellness proposition that differentiates the property


The paper outlines that real estate markets were greatly affected by new customer expectations and socio-economic factors in recent years, including increasing health-consciousness, which led to more spa visits and higher spend at wellness facilities.

In particular, thermal and mineral springs grew in popularity due to rising demand for authentic and natural spa experiences, and wellbeing offerings became integrated throughout the property rather than focusing only on the spa area.

Widespread concerns relating to the pandemic also further strengthened customer focus on health, which translated into increased demand for wellbeing services.

To read the full report, click here.


News
1 to 12 of 7535 news stories
22 Sep 2020
An aesthetics and wellness clinic has launched a new facial treatment dedicated to key workers on the frontlines of the pandemic. Developed at KLNIK, in Cheshire, UK, the new facial came to fruition after the ... More
22 Sep 2020
The Global Wellness Summit (GWS) has announced the appointment of C. Victor Brick, CEO of Planet Fitness Growth Partners (PFGP) and chair of the John W. Brick Mental Health Foundation, to its 12-person advisory board. ... More
18 Sep 2020
Hundreds of thousands of small companies in the UK – including those operating in spa, fitness and leisure – are set to receive payouts on interruption insurance policies, following a high court judgment in a ... More
21 Sep 2020
Hyatt Hotels Corporation has announced a new collaboration between its spa and fitness brand, Exhale, and the newly launched Amazon Halo service. Powered by a mobile app and accompanying wristband, the newly launched Amazon Halo ... More
21 Sep 2020
Four Seasons Hotels and Resorts is collaborating with developer, Gruppo Statuto, to transform the celebrated San Domenico Palace in Sicily, Italy, into San Domenico Palace, Taormina, A Four Seasons Hotel. The hilltop destination was formerly ... More
18 Sep 2020
Cruise ship and resort operator, OneSpaWorld Holdings (OSW) has announced that Susan Bonner will join the company as chief commercial officer, starting 12 October, 2020. In this newly created position, Bonner will be part of ... More
18 Sep 2020
Industry figure, Rainer Bolsinger, has recently been appointed chief sales officer and chief marketing officer for artofcryo.com, a new division of L&R Kältetechnik GmbH & Co. KG. L&R has a 30-year history with -110°C solutions ... More
17 Sep 2020
Breathwork is known globally as a key pillar of wellness and its positive effects are well documented on the physical, mental and emotional state. In St Lucia, Windjammer Landing Villa Beach Resort and Spa has ... More
16 Sep 2020
The Global Wellness Institute’s (GWI) latest Q&A with experts on wellness in the age of COVID-19 saw VP of research and forecasting, Beth McGroarty, talk with entrepreneur Melisse Gelula, who previously co-founded wellness media company, ... More
16 Sep 2020
Luxury hotel and resort brand Aman has unveiled plans for urban Aman Residences in Bangkok, with design by world-renowned architect, Jean-Michel Gathy. Aman has signed a long-term partnership with Nai Lert Park Development, a subsidiary ... More
15 Sep 2020
Integrative health resort, Chiva-Som in Hua Hin, Thailand, is growing its Online Wellness Service offering with a series of complimentary classes and talks throughout September and October. The resort is expanding its existing support programme, ... More
11 Sep 2020
Spa management company, ISM Spa, is expanding its reach in the US, having recently opened two new properties and revealing plans to open an additional destination in Q4 2020. Certified as a Women’s Business Enterprise, ... More
     
International SPA Association - iSPA
ResortSuite
Company Profile
Nilo
Established in 1986, Nilo Spa Design is the wellness and beauty division of the family owned [more]
 
MORE PROFILES
Featured Supplier
Blu Spas to launch new wellness concepts
Blu Spas is a full-service firm offering consulting, advisory and operating solutions. ... more
International SPA Association - iSPA
Product news
Fashionizer Spa grows uniform range with launch of new tunic style and PPE offerings
Fashionizer Spa grows uniform range with launch of new tunic style and PPE offerings
Book4Time invests in data team and makes new appointments to increase market leadership position
Book4Time invests in data team and makes new appointments to increase market leadership position
Esthetica unveils portable disinfection towers using ultraviolet light
Esthetica unveils portable disinfection towers using ultraviolet light
Neom Organics unveils new luxury sustainable body wash and lotion range
Neom Organics unveils new luxury sustainable body wash and lotion range
Natura Bissé collaborates with UK and Irish spas to thank healthcare assistants in care homes
Natura Bissé collaborates with UK and Irish spas to thank healthcare assistants in care homes
Aromatherapy Associates introduces shower oils blended with up to 28 pure essential oils
Aromatherapy Associates introduces shower oils blended with up to 28 pure essential oils
Directory

 
JOBS
NEWS
VIDEO
TRAINING
PRODUCTS
MAGAZINE
 
SPA BUSINESS
SPA-KIT.NET
SPA BUSINESS HANDBOOK
SUBSCRIBE
ADVERTISE
FREE DIGITAL SUBSCRIPTIONS
CONTACT US

Leisure Media, Portmill House, Portmill Lane,
Hitchin, Hertfordshire SG5 1DJ Tel: +44 (0)1462 431385

©Cybertrek 2020



Jobs   News   Products   Magazine
NEWS
Investors must thoroughly assess financial impacts of wellness investments, says new wellness real estate report
POSTED 07 Sep 2020 . BY Megan Whitby
Data showed that resorts and hotels with major wellness operations generated 43 per cent higher TrevPAR in 2019, than their peers with no wellness offering Credit: Shutterstock: Pixel-Shot
There’s great growth potential from the sector, but investors face challenges in assessing the overall value of the wellness offering and a transparent internal rate of return
– Roger Allen
Wellness offerings can significantly boost hotel revenues and profits, but developers and investors must carefully assess their impacts on real estate to achieve targeted returns, according to a recent industry study.

Conducted by Resources for Leisure Assets, (RLA), The Wellness Real Estate Report uses market data from P&L benchmarking company, HotStats, on the financial performance of 3,200 international hotels of all classes, to provide insights on how wellbeing and wellness may contribute to the existing business or planned projects of investors and developers on the revenue and profit levels.

“There’s great growth potential from the sector, but investors face challenges in assessing the overall value of the wellness offering and a transparent internal rate of return," said Roger Allen, Group CEO at RLA.

Data showed that resorts and hotels with major wellness operations generated 43 per cent higher total revenues per available room (TrevPAR) in 2019, than their peers with no wellness offerings.

However, it also indicated that simply adding wellness or wellbeing features doesn't necessarily translate into higher TrevPAR, as hotels and resorts with minor wellness offerings recorded almost 6 per cent less TRevPAR compared to those with no wellness facilities at all.

Furthermore, the paper highlights that running large wellness operations doesn’t automatically lead to better bottom-line performance, as associated expenses may eat away at profits.

The data indicated that hotels with significant wellness offerings achieved lower operating profit conversion than those with minor or no wellness operations in 2019.

According to Allen, the main takeaways from the paper for potential investors and developers in wellness real estate are as follows:
  • Make sure to select the right business model for wellness facilities and services

  • Determine how much of the real estate should be dedicated to wellness

  • Don’t underestimate the importance of location

  • Ensure there is a wellbeing or wellness proposition that differentiates the property


The paper outlines that real estate markets were greatly affected by new customer expectations and socio-economic factors in recent years, including increasing health-consciousness, which led to more spa visits and higher spend at wellness facilities.

In particular, thermal and mineral springs grew in popularity due to rising demand for authentic and natural spa experiences, and wellbeing offerings became integrated throughout the property rather than focusing only on the spa area.

Widespread concerns relating to the pandemic also further strengthened customer focus on health, which translated into increased demand for wellbeing services.

To read the full report, click here.
RELATED STORIES
Historic hot spring hotel in Portugal to be restored into riverside wellness retreat


Resources for Leisure Assets (RLA), an international consultancy specialising in leisure and wellbeing in real estate, has revealed plans for a luxury wellness retreat and thermal destination on the edge of the River Tâmega, Portugal.
MORE NEWS
Aesthetics clinic develops facial for frontline workers inspired by the power of touch
An aesthetics and wellness clinic has launched a new facial treatment dedicated to key workers on the frontlines of the pandemic.
GWS appoints ­fitness industry thought leader, C. Victor Brick, to advisory board
The Global Wellness Summit (GWS) has announced the appointment of C. Victor Brick, CEO of Planet Fitness Growth Partners (PFGP) and chair of the John W. Brick Mental Health Foundation, to its 12-person advisory board.
Spas could get payouts on business interruption insurance following high court ruling
Hyatt’s wellbeing brand, Exhale, teams up with Amazon over newly launched Halo service
Hyatt Hotels Corporation has announced a new collaboration between its spa and fitness brand, Exhale, and the newly launched Amazon Halo service.
Four Seasons to manage historic San Domenico Palace in Taormina, Italy
Four Seasons Hotels and Resorts is collaborating with developer, Gruppo Statuto, to transform the celebrated San Domenico Palace in Sicily, Italy, into San Domenico Palace, Taormina, A Four Seasons Hotel.
Susan Bonner appointed OneSpaWorld CCO as Glenn Fusfield announces plans to retire as CEO
Cruise ship and resort operator, OneSpaWorld Holdings (OSW) has announced that Susan Bonner will join the company as chief commercial officer, starting 12 October, 2020.
+ More news   
 
COMPANY PROFILES
Rice Force

Rice Force is a Japanese cosmetic brand inspired by the ancient custom of using rice water to clea [more...]
+ More profiles  
DIRECTORY
+ More directory  
DIARY

 

21-24 Sep 2020

SIBEC North America

Loews Coronado Bay Resort, Coronado, United States
21-24 Sep 2020

Interbad

Messe Stuttgart, Germany
+ More diary  
 


CONTACT US

Leisure Media, Portmill House, Portmill Lane,
Hitchin, Hertfordshire SG5 1DJ Tel: +44 (0)1462 431385

©Cybertrek 2020

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS