Key Takeaways: 

• Wellness demand is accelerating across all hotel segments worldwide.
• Experience-led wellness now outperforms traditional luxury models.
• Major Wellness dominates through superior ancillary revenue and profit conversion.

The 2025 Wellness Real Estate Report draws on one of the most comprehensive hotel performance datasets in the world—profit-and-loss benchmarking from HotStats, covering more than 11,000 hotels across all classes globally. Using the Uniform System of Accounts for the Lodging Industry (USALI), the report evaluates real, on-the-ground financial data from properties in global luxury, upper-upscale, and upscale segments. Hotels are grouped into Major Wellness, Minor Wellness, and No Wellness categories based on the size and revenue contribution of their wellness operations, enabling direct comparisons of revenue streams, operating costs, departmental profitability, and total asset performance.

Both investors and operators are now confronting a structural shift in how wellness contributes to revenue, profitability, and long-term asset value. Across segments, geographies, and hotel classes, wellness offerings are reshaping pricing power, occupancy resilience, and the very definition of luxury hospitality. And in a year marked by global headwinds, consumer recalibration, and tightening travel spend, one message stands out: Major wellness came roaring back, while minor wellness emerged as the fastest-growing performance category across key revenue metrics.

Across luxury, upper-upscale, and upscale segments, Minor Wellness hotels delivered the strongest year-over-year (YoY) growth, recording a 6% increase in revenue per available room (RevPAR) and 7% increase in total revenue per available Room (TRevPAR). That momentum pushed the category ahead in both revenue and resilience, especially in markets where wellness demand is expanding rapidly.

Wellness Outperforms the Market

• Major Wellness assets delivered a strong rebound in 2024, outperforming Minor Wellness and No Wellness across most revenue metrics.
• Minor Wellness hotels recorded the highest YoY growth, achieving a 6% increase in RevPAR and a 7% increase in TRevPAR, making them the fastest-growing segment in 2024.
• Properties with No Wellness also saw RevPAR and TRevPAR rise by 3% YoY, driven primarily by higher occupancy levels rather than rate growth or ancillary revenue.
• Total revenue per occupied room (TRevPOR) growth remained muted across all wellness categories (1% for No Wellness, 2% for Minor and Major Wellness), indicating that on-property spending increased only slightly despite improving occupancy.
• Major Wellness hotels generated 56% higher TRevPAR than Minor Wellness and 108% higher TRevPAR than hotels with No Wellness, underscoring the powerful contribution of wellness to total revenue.
• In 2024, Major Wellness outperformed Minor Wellness by delivering 10% higher RevPAR and 6% higher average daily rate (ADR), confirming stronger rate-driven performance.
• When comparing the extremes, Major Wellness generated 22% higher RevPAR and 18% higher ADR than No Wellness hotels, further validating its premium pricing power.
• Ancillary revenue made up 56% of TRevPAR in Major Wellness properties, compared to 38% in Minor Wellness and just 24% in No Wellness, proving that embedded wellness offerings directly drive non-room revenue.
• Major Wellness achieved the highest spending per occupied room (POR) in 2024, with TRevPOR of $505, followed by Minor Wellness at $335, and No Wellness at $251.
• Despite strong top-line performance, Major Wellness assets also carry the largest payroll burden, with payroll accounting for 39% of total revenue, compared to 29% in Minor Wellness and 31% in No Wellness.
• Major Wellness ultimately delivered the highest absolute profit, outperforming Minor Wellness on gross operating profit per available room (GOPPAR) in 2024, even though Minor Wellness showed stronger YoY improvement versus 2023.
• All global regions recorded YoY increases in TRevPAR for the Minor Wellness category, with Africa and the Middle East achieving notable double-digit growth.
• Gross operating surplus per square meter (GOSPPAR) remained flat, indicating that inflation and operating costs continue to erode gains from revenue growth.
• Although Major Wellness incurs higher staff and operational costs, departmental and undistributed expenses remained aligned with Minor Wellness, suggesting efficient cost management in top-tier wellness properties.
• Occupancy remained broadly stable across categories in 2024, with Major Wellness up one point, Minor Wellness up two points, and No Wellness declining by one point.
• Major Wellness demonstrated stronger resilience to seasonality, maintaining more consistent occupancy throughout the year compared to No Wellness hotels, which showed the largest month-to-month volatility.
• Major Wellness hotels generated significantly higher leisure revenue POR (US$98.31), compared with Minor Wellness (US$6.50), reflecting the scale and sophistication of wellness programming.
• Major Wellness leisure departments delivered a strong profit conversion of 49%, whereas Minor Wellness achieved 32%, highlighting the superior economics of fully built-out wellness operations.
• According to industry experts, wellness continued to serve as a destination driver in 2024, contributing to TRevPAR double-digit growth in several regions.

Rachael Rothman, Head of Hotels Research and Data Analytics at Global Commercial Real Estate Services (CBRE), noted that the traditional hierarchy of hotel performance is shifting. “Major Wellness assets in the upscale segment are now outperforming even luxury properties in total revenue per room. This could reshape how capital is allocated and how future developments are designed.”

Despite global volatility, occupancy levels across all wellness categories remained stable in 2024:

• Major Wellness: 66% (up from 65% in 2023)
• Minor Wellness: 64% (up from 62% in 2023)
• No Wellness: 63% (down from 64% in 2023)

Occupancy Holds Steady, But the Real Growth Is in On-Property Spend

• Occupancy levels across all hotel categories remained broadly stable in 2024, indicating that travel demand has normalized rather than grown sharply.
• Major Wellness properties increased occupancy slightly from 65% in 2023 to 66% in 2024, demonstrating steady demand despite their higher price positioning.
• Minor Wellness hotels achieved a two-point occupancy increase, rising from 62% in 2023 to 64% in 2024, marking the strongest occupancy improvement across segments.
• Hotels without wellness offerings experienced a one-point occupancy decline, dropping from 64% in 2023 to 63% in 2024, indicating weakening competitiveness compared to wellness-enabled properties.
• Seasonal patterns show that Major Wellness assets maintained the most consistent occupancy throughout 2024, never dropping below 60%, reinforcing the stabilizing effect of wellness amenities.
• No Wellness properties displayed the greatest seasonal volatility, ranging from 55% occupancy in January to 68% in June, before falling sharply to 58% in December.
• Minor Wellness hotels demonstrated moderate seasonality, peaking at 68% in August and closing the year at 62%.
• Month-by-month data confirms that Major Wellness properties consistently held the highest or second-highest occupancy every month of 2024.
• The widest occupancy gap between segments occurred in December, when Major Wellness (64%) outperformed No Wellness (58%) by six percentage points, signaling that wellness helps protect against off-season performance dips.
• Despite stabilized occupancy, TRevPOR increased only modestly across all categories (2% for Major and Minor Wellness; 1% for No Wellness), indicating that on-property spending—not occupancy—is the primary growth driver.
• Industry experts note that while occupancy is steady, hotels must now focus on unlocking ancillary revenue, as guests show high interest in wellness amenities, but current monetization remains limited.

Occupancy is holding steady, showing that travel demand remains strong. But hotels can’t ride the wave anymore—revenue growth is softening,” said Michael Grove, CEO of HotStats. “The challenge now is unlocking more on-property spend, especially in wellness.”

Major Wellness Leads by a Wide Margin

• Major Wellness properties benefit from significantly higher leisure profit conversion—49%—demonstrating that wellness is not only a revenue engine but also a highly profitable department.
• Despite requiring more specialized staffing, Major Wellness properties maintain relatively efficient cost structures, with payroll accounting for 35% of leisure income and departmental expenses kept to 16%.
• Minor Wellness properties face a less favorable cost-to-revenue ratio, with payroll absorbing 48% of leisure income, resulting in a lower 32% leisure profit conversion.
• Across all asset classes—Luxury, Upper Upscale, and Upscale—Major Wellness consistently generates higher leisure revenue than Minor Wellness, with luxury Major Wellness properties earning $136 POR, compared with just $9 POR for Luxury Minor Wellness.
• Upscale Major Wellness hotels show the strongest upward trajectory in leisure revenue, rising from $47 POR in 2023 to $77 POR in 2024, highlighting the growing demand for wellness even in lower-priced segments.
• The dominance of Major Wellness in ancillary revenue aligns with broader industry trends where travelers increasingly prioritize wellness experiences, rituals, and recovery-focused offerings as essential components of their hotel stay.

One of the most decisive distinctions between wellness and non-wellness hotel assets is the sheer volume of ancillary revenue they generate. Major Wellness properties now derive 56% of their TRevPAR from non-room revenue, compared with 38% for Minor Wellness and just 24% for hotels with no wellness offering. This disparity explains why Major Wellness hotels consistently outperform in TRevPAR even when occupancy differences are minimal. Their value is built not just on filling rooms, but on monetizing spa, fitness, memberships, and experiential programming at a scale the rest of the market cannot match. The gap becomes even clearer when examining leisure revenue per occupied room: In 2024, Major Wellness averaged $98.31 POR, while Minor Wellness generated only $6.50. Few other hotel departments show this level of sustained demand paired with expanding revenue streams. As Michael Newcombe, Vice President of Wellness at Four Seasons Hotels and Resorts, notes, “Wellness as a destination driver continues to display strong momentum across global hotel and resort markets, reflected in TRevPAR double-digit growth in several regions.”

Minor Wellness Is Catching Up

• Minor Wellness properties achieved the largest YoY increase in GOPPAR, marking the first time they have significantly narrowed the profitability gap with Major Wellness.
• Major Wellness still maintains a higher GOPPAR overall, but the rate of improvement in Minor Wellness far outpaced all other categories in 2024.
• In 2024, Major Wellness properties recorded a GOP margin of 25%, whereas Minor Wellness properties achieved a significantly higher 33% GOP margin.
• No Wellness hotels reported the highest GOP% at 37%, due largely to lower departmental expenses and reduced payroll requirements rather than superior revenue generation.
• Minor Wellness operates with a total payroll of 29%, which is lower than Major Wellness, but 48% of that payroll is concentrated in the leisure department, putting pressure on bottom-line profitability.
• Major Wellness properties showed a leisure department profit conversion of 49%, reflecting a more optimized and efficient operating structure.
• Major Wellness properties allocate 35% of leisure revenue to payroll, indicating higher staffing needs but stronger revenue productivity compared with Minor Wellness.
• Major Wellness reported only 16% departmental expenses within the leisure division, underscoring superior cost efficiency and economies of scale.
• The data collectively highlight that Minor Wellness is improving rapidly, but Major Wellness continues to outperform through stronger operational efficiency, better resource allocation, and higher-value wellness offerings.

The 2024 data reveals one of the most unexpected shifts in wellness real estate: Minor Wellness hotels are rapidly closing the profitability gap with Major Wellness for the first time. While Major Wellness properties still lead in absolute GOPPAR and TRevPAR, Minor Wellness recorded the strongest YoY gains—driven by rising occupancy, improved revenue mix, and more disciplined cost structures. Despite No Wellness hotels showing the highest GOP percentage overall, this advantage is largely structural: Their operating models inherently carry fewer staffing and departmental costs rather than generating superior revenue performance. The real story lies inside the payroll distribution. Minor Wellness properties operate with far lower total payroll than Major Wellness, yet nearly half of their payroll sits within the leisure department, compressing margins and limiting profit conversion. Major Wellness, meanwhile, demonstrates a more efficient and scalable operating model, with stronger department-level profit conversion, leaner expenses, and a clearer pathway to sustainable profitability.

Wellness Shaping the Hotel Landscape

Wellness is now one of the strongest pricing engines in global hospitality, and the 2025 Wellness Real Estate data makes the gap unmistakable. Hotels with Major Wellness consistently command higher rates and generate more revenue across every key metric—ADR, RevPAR, TRevPAR, and TRevPOR—outperforming both Minor Wellness and No Wellness properties. In 2024, Major Wellness achieved an ADR of $220, RevPAR of $146, and a striking $334 TRevPAR, more than double that of No Wellness hotels. Even properties with Minor Wellness capabilities demonstrate clear pricing power: They recorded $207 ADR and $132 RevPAR, along with significant YoY gains, particularly in luxury and upper-upscale segments where RevPAR rose 8% and 5%, respectively. The most dramatic shift occurred in the upscale category, where Major Wellness posted a 150%-160% YoY surge across all KPIs—a sign that wellness is not merely a value-add but a core driver of demand, rate premiums, and revenue expansion. As travelers increasingly seek well-being-led experiences, hotels with robust wellness offerings are positioned to lead the market in both price resilience and revenue growth.

Wellness is proving to be one of the most effective stabilizers of hotel demand, smoothing out the seasonal highs and lows that typically challenge hospitality performance. The year-round occupancy data shows that Major Wellness properties maintain the most consistent performance, staying above 60% occupancy every month and peaking predictably in summer without dramatic drops. By contrast, No Wellness hotels experience the widest volatility, with a 13-point swing between their strongest and weakest months—evidence of far greater sensitivity to seasonal travel patterns. Minor Wellness sits between the two but still benefits from a noticeably steadier curve than hotels without wellness programs. This reduced volatility is not just operationally convenient; it represents a powerful financial hedge. As investors and operators search for ways to protect revenue during off-season periods, wellness emerges as one of the few levers that reliably stabilizes occupancy, smooths demand, and keeps properties performing regardless of external conditions.

Wellness Trends for 2025: A New Definition of Luxury

Wellness in 2025 is shifting from excess to essence. After years defined by hyperspecialized treatments and high-gloss amenities, the new luxury is rooted in meaningful, regenerative experiences. Hotels and developers are moving away from “more is more” programming and returning to foundational rituals that genuinely improve quality of life—deep rest, natural movement, emotional balance, and sensory reconnection. Sleep is becoming one of the most powerful differentiators in guest loyalty, backed by data from elite athletic research and consumer surveys showing that rest now outranks amenities as a priority during booking.

Design philosophies are also maturing. The rise of neuroarchitecture and biomimicry is reshaping how wellness spaces are built and experienced. Developers are using airflow-responsive layouts, nature-inspired structures, and cognitive-supportive interiors to create environments that actively influence emotional regulation and mental clarity. This marks a shift from wellness as an activity to wellness as an embedded property feature—something guests feel rather than schedule.

At the same time, wellness culture is simplifying. Evidence-backed practices such as cold therapy, heat exposure, and contrast rituals are returning not as trends but as everyday health tools. These are complemented by a growing demand for outdoor connection, biophilic design, and spaces that prioritize calm over spectacle. Together, they signal a consumer move toward intentional simplicity, where the most valuable experiences feel grounding, authentic, and deeply human.

What This Means for Beauty and Wellness

For beauty and wellness brands, The 2025 Wellness Real Estate Report signals a broader cultural shift that extends far beyond hotels. The consumer definition of wellness is evolving rapidly and brands must evolve with it. Wellness is no longer about indulgence, escapism, or high-gloss experiences—it is now grounded in science-backed efficacy, emotional well-being, and restorative simplicity. Consumers want products and services that genuinely improve the way they feel, sleep, move, and recover. This means brands that once competed on luxury aesthetics must now compete on outcomes.

The industry-wide shift toward simplified wellness rituals echoes a major opportunity for beauty. Consumers are gravitating toward essentials that work: recovery-driven formulas, barrier-support technologies, sleep-enhancing treatments, and nature-integrated ingredients. The future belongs to brands that prioritize clarity over complexity and deliver routines that fit naturally into everyday life.

Most importantly, the report underscores that wellness is now a core economic driver, not a secondary brand pillar. In hotels, wellness directly increases pricing power, stabilizes occupancy, and boosts ancillary spending. For beauty brands, the parallel is clear: Wellness-led products and narratives can unlock premium positioning, stronger loyalty, and deeper consumer trust.