Spa_Business_Handbook_2021-2022

Page 120

research

PROPERTY PRICES The pandemic has influenced how spa, wellness and wellbeing impact hotel revenues and profits. Laura Dutrieux, managing director EMEA, RLA Global, shares key findings from the Wellness Real Estate Report...

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nvestors and developers have often faced challenges in assessing the tangible value of spa, wellness and wellbeing offerings on the financial performance of hotels and resorts, even before COVID. With the overall disruption the pandemic caused in the industry, it became much more difficult to see how these features impact the bottom line of the entire asset. As the easing of travel restrictions fuel hopes for a timely recovery in key markets, benchmarking the competitive set of hotels and resorts with wellbeing and wellness offerings could be more useful than ever to stakeholders. The Wellness Real Estate Report uses data from P&L benchmarking firm HotStats on the performance of 3,200 properties globally to provide insights on how wellness and wellbeing contribute to revenue and profit. The 2021 edition of the report found the pandemic had a twofold impact on property with a wellness and wellbeing proposition. It cut revenue and profit in 2020, but created a stronger customer focus on health,

120 spa business HANDBOOK 2021 – 2022

Revenue generation gaps

translating into an increased demand for wellbeing and wellness offerings. Such features helped some properties fare better than others during the crisis, which potentially indicates certain post-lockdown trends as well.

In 2020, the total revenue of properties with major wellness operations outpaced that of hotels with relatively minor wellness features or services. It can be argued that the difference came from

REVENUE PER AVAILABLE ROOMS (US$) TREVPAR

Rooms

F&B

Wellness

Major Wellness

150.96

63.81

45.73

26.75

Minor Wellness

76.23

43.37

27.25

1.06

98%

47%

68%

Difference

INCREASE IN DEPARTMENTAL REVENUE PAR IN MAJOR WELLNESS vs MINOR WELLNESS PROPERTIES

20.44

0

10

18.48

20

30 n Rooms

40 n F&B

25.69

50

60

70

n Wellness

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