Skip to content

Search

Latest Stories

Report: Hotels reposition into the wellness-hospitality sector

The COVID-19 pandemic has emphasized the importance of health to travelers

THE COVID-19 PANDEMIC has driven the interest in health and wellness to an all-time high, said consulting firm HVS. Along with offering healthy and organic F&B options, jogging concierge services, and cooking classes, more hotel brands and properties are making workout alternatives more accessible to travelers who wish to maintain their training routines while on the road.

Hotels and operators are reimagining their various fitness programs to include a more flexible and technological approach to standard offerings, said an article titled ‘A deep dive into wellness hospitality’ jointly written by HVS experts Mia Mackman, Stacey Zhu and Daniel Voellm.


“New spa-and-wellness businesses and innovative performance models will be required to reposition services and meet these changing needs. Creating successful spa-and-wellness propositions and new business models requires a delicate balance of understanding the spa-and-wellness market and the social and economic ecosystems in which it lives,” Zhu and Voellm said. “In the current climate of travel and tourism, well-being propositions are at the forefront. With transient leisure and recreational components being primary focal points, this further drives demand and interest in the primary wellness category.”

While most urban wellness centers have catered to the high-end market but are now reaching out to a broader set of consumers. Based on HVS’s research, wellness properties in the U.S., India, Thailand, and Europe register average lengths of stay ranging from seven to ten nights. Some of the long-established and leading destination spas located worldwide include a diverse range of properties with varying levels of targeted well-being, such as Rancho La Puerta, Canyon Ranch, Miraval, Lanserhof, SHA, Ananda, Chiva-Som, and Kamalaya.

It is common to observe around 30 percent to 40 percent of the operating revenues coming from the spa and wellness center, much higher than traditional luxury hotels and resorts. This percentage can go up to as high as 50 percent if most of the programs offered are results-driven, highly specialized, and customized, said HVS.

Based on the 2019 HVS annual Spa Department Performance Report, luxury hotel spas generate approximately 7.4 percent of total revenue on average across the U.S.

In January 2020, the Four Seasons Hotel Silicon Valley partnered with the gym technology company Tonal to offer select fitness-oriented guestrooms that feature an intelligent fitness system and personal trainer, integrating expert coaching and innovative equipment for various guided workouts, including yoga, cardio, and strength training.

Fitness-and-wellness-focused brand Westin teamed up with the fitness equipment and media company Peloton in 2017 to put its cardio bicycles in the fitness centers and select guestrooms of U.S. hotels. Hilton also launched its “Five Feet to Fitness” guestroom concept with the installation of over eleven different pieces of workout equipment and accessory options, as well as 25 in-room fitness tutorials. Though only available in select Hilton locations, these features increase the ADR for these rooms by around $45 nightly.

In 2012, InterContinental Hotels Group launched the EVEN Hotels brand aimed at the wellness market. IHG also acquired Six Senses, a brand focused on wellness and sustainability, in 2019. Now, IHG has 15 operating EVEN Hotel properties with 28 more in the development pipeline globally. Additionally, the hotel group plans to expand the Six Senses brand to 60 properties from the existing 18 within the next ten years.

In 2017, Hyatt Hotels Corporation acquired two wellness brands—Miraval Group and Exhale—with plans to incorporate their offerings into the Hyatt guest experience. Miraval Group is a New York-based wellness resort and spa operator best known for its flagship wellness destination property in Tucson, Arizona. Miraval has recently expanded its portfolio in the U.S. to include new locations in Austin, Texas, and Lenox, Massachusetts.

Exhale is a chain of lifestyle fitness centers that provides boutique fitness classes and spa services. Another wellness pioneer is Canyon Ranch. Canyon Ranch also has a flagship property located in Tucson, Arizona, and recently expanded in the U.S. by adding a new location in Woodside, California.

Wellness real estate was a $134 billion global industry in 2017. In North America, it is worth $55 billion with a CAGR of 7percent. There are eight in North America of which five are in the U.S. They are Mii Amo, Miraval Arizona, Golden Door, Canyon Ranch Tucson, Cal-a-Vie Health Spa.

In 2018, a CBRE Hotels Research survey found U.S. hotels reported a higher spa revenue than room revenue and total operating revenue.

More for you

ExStay Washington DC

Third regional ExStay workshop set for D.C.

Summary:

  • ESLA and Kalibri will hold the third ExStay workshop on July 30 in Washington, D.C., following sessions in Atlanta and Dallas.
  • The event will feature experts from brands, operators, data firms and advisory groups.
  • Sessions will cover investment and include Q&As on developing, renovating, converting and operating extended stay assets.

THE EXTENDED STAY Lodging Association and Kalibri Labs will host the third quarterly ExStay workshop on July 30 in Washington, D.C., following earlier sessions in Atlanta and Dallas. The event will bring together extended stay lodging executives for networking.

Keep ReadingShow less
Deloitte value-seeking report 2025

Study: Consumers seek value over low prices

Summary:

  • Consumers are prioritizing value over low prices, pushing brands—including hotels—to adapt, Deloitte finds.
  • Economic uncertainty and inflation are driving caution and shifting views on pricing and spending.
  • Value-seeking by generations: 49 percent of Gen X, 43 percent of Boomers, 40 percent of Millennials and 44 percent of Gen Z.

AMID ECONOMIC UNCERTAINTY and inflation, U.S. consumers are prioritizing value over low prices, favoring brands with added benefits, according to a Deloitte study. This shift is reshaping the market as companies, including hotels, adapt to changing expectations.

Keep ReadingShow less
Gen Z Shifts Hotel Shopping: Tech, Experiences & Values

Survey: Gen Z redefines hotel shopping

Summary:

  • Younger consumers are redefining hotel discovery through platform-hopping and peer input, according to SOCi.
  • Fragmented search and discovery are reshaping how trust is built.
  • About one-third of consumers aged 18–34 report less brand loyalty than a year ago.

GEN Z IS RESHAPING hotel shopping through multiple platforms, peer input and real-time research, according to SOCi, a marketing platform for multi-location businesses. Unlike previous generations who relied on a single search engine or map app, the younger consumer moves through a series of smaller decisions - starting on TikTok, checking Reddit or Yelp and ending with a Google Maps search.

Keep ReadingShow less
Hotel Tech Advances; Outpaces Operational Readiness

Report: Tech outpaces readiness in hotels

  • A gap is growing between technological potential and operational readiness, with many hotel teams still early in AI use.
  • Distribution teams are evolving with limited resources and uneven investment in talent and automation.
  • The report outlines how commercial teams in hospitality are managing transformation.

THERE IS A widening gap between technological potential and operational readiness, with many hotel staff still early in using AI effectively, according to “The State of Distribution 2025” report. Despite the availability of technology, training, systems and workflows remain in development.

The second edition of the industry benchmark report—published by NYU SPS Jonathan M. Tisch Center of Hospitality and its Hospitality Innovation Hub, in collaboration with RateGain Travel Technologies and HEDNA—noted that as traveler expectations rise, aligning people, processes and platforms is becoming a driver of performance.

Keep ReadingShow less
G6 Hospitality RMS Program Powers Q1 2025 Growth

G6 RMS properties log 11 percent Q1 revenue gain

Summary
  • The G6 RMS program uses automation, comp tracking and strategy calls.
  • RMS properties saw 11 percent year-over-year revenue growth in Q1 and a 10 percent higher ADR.
  • Revenue-managed properties posted 11.5 percent growth through web and app channels.

PROPERTIES OF G6 Hospitality enrolled in its “G6 Revenue Management Services” program saw 11 percent year-over-year revenue growth in the first quarter of 2025, more than double the rate of the rest of the portfolio. They also recorded a 10 percent higher ADR than non-RMS properties.

The RMS program uses proprietary automation tools, daily competitive set monitoring and bi-weekly strategy calls with revenue managers, G6 said in a statement. G6 is the parent company of Motel 6 and Studio 6 brands.

Keep ReadingShow less