Roger Allen, Group Chief Executive Officer of RLA Global, talks to Spa Business magazine about how hotels with wellness report gross operating profits 10 times higher than hotels with no wellness and how the addition of wellness services can open up new markets for hotels and resorts.
Due to the outstanding performance of the leisure market since the start of the pandemic, resort assets have grown significantly in their appeal to investors – partly because of the swift return of demand from holidaymakers, who are eager to travel again after lengthy lockdowns.
We expect products that are close to nature to be especially of interest, due to consumers’ increased appetite for healthy outdoor experiences. Many guests are also ready to pay more money in order to feel safe at a resort. Price is really not a factor for many people if they feel they’re in a safe place.
Recent merger and acquisition deals by hotel groups and private equity investors bear this out, showing that leisure is where the current market is at, while the trends indicate that resort and leisure assets will continue to lead the recovery in the immediate future.
Our research shows that hotels with no wellness have had little ability to adapt since the start of the pandemic, not being able to offset losses in room revenue – whereas hotels with wellness report gross operating profit per available room (GOPPAR) levels 10 times higher than hotels with no wellness.
Read the whole article here: spabusiness.com
Reprinted with the kind permission of the copyright holder from
Spa Business magazine issue 4 2021. Find out more at
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