The principle “As you would expect at home, so will hotels” is a key guideline in hotel design. This means that hotels will either lose bookings, or have difficulty increasing nightly rates above the market-determined price.
Wellness amenities are a growing trend in residential and hotel development. They are a key component of new construction, renovations and area conversions. Without citing one of the now innumerable statistics pointing to the growth of this sector, the underlying demand driver is that ‘health is wealth’ with people of all ages increasingly deciding to prioritize spending on products that sustain a healthier, more active lifestyle. It’s a social shift that will have profound effects on the hotel and multifamily sector.
In addition to increasing the nightly rate or other revenues, wellness features are also a great way to increase unit prices per square foot in apartments and houses. There is also a downside to not including wellness amenities in varying degrees. This is especially true for hotel brands, who are looking to differentiate themselves and command rates above the market.
It is important to remember that this concept is relatively new, so we should look to those who are leading the way to build wellness communities to learn how they achieve success. Miami is the perfect place to begin. This city has experienced a rapid growth in real estate development over the past decade. Miami has become the second most healthy city in the United States. It is home to the largest number of people who are active for 90 minutes a week or more.
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David Martin from TerraKane Sarhan and, a Miami-based leading real estate developer THE WELL. This is the first residential wellness brand to have launched a project. THE WELL Bay Harbor MiamiThe Well Coconut Grove, its second residential project, was announced just a few days ago.
To give you a sense of the demand for homes – and by extension hotels – that actively enhance health and happiness, THE WELL Coconut Grove sold 20% of its unit within the first 48 hours of its announcement. The building, which will have up to four bedrooms starting at $1.5million, will also feature HBOT (hyperbaric air therapy), relaxation lounges in crystal caves and other luxury wellness features.
Miami has become a hub of wellness and longevity. What are the factors that have contributed to this change?
Martin: Miami’s growth as a hub of wellness and long-term health stems from its unique combination with climate, natural beauties and diverse cultures, along with a growing demand for a holistic lifestyle. The city’s focus on integrating wellness into everyday life – through luxury developments like THE WELL Coconut Grove – has solidified its status as a destination where health, sustainability and luxury intersect, attracting residents and travelers seeking a balanced lifestyle. Coconut Grove is a special place in the transformation. Coconut Grove’s rich history, sense of community, and connection to the natural world make it an ideal place for living a wellness-focused lifestyle.
How did you identify this demand? How did you justify the additional investment, and not just focus on cost efficiency?
Martin: We saw that consumers were increasingly focused on wellness and health as an integral component of their homes, supported by trends in luxury property and wellness spending. After conducting extensive research on the market, analyzing customer preferences, and observing the success of Bay Harbor Islands’ initial collaboration, we knew it was a worthwhile purchase. The cost of the home is justified because it will enhance the well-being of the residents, and therefore provide a long-term benefit for the entire community.
Can you highlight some in-unit features, on-premises amenities, design elements related to neuroarchitecture or biophilia and other FF&E that promote wellbeing?
Sarhan: THE HEALTH Coconut Grove integrates wellbeing into every aspect in design. This includes abundant natural light, biophilic elements such as the plant-filled Conservatory, lush rooftop and thoughtful features within the unit, like Wellness Dens dedicated to at-home meditation, and top-tier material like Italkraft cabinetry, quartzite countertops and Italkraft cabinetry. Kitchens feature Kraus Kore™ sinks and premium appliances by Sub-Zero and Wolf, ensuring both functionality and elegance. Amenities such as the 40,000 square foot rooftop wellness paradise, Bath House and Crystal Cave relaxation lounges and curated packages help residents to make wellness a part of their everyday lives. A holistic lifestyle is ensured by personalized services such as biannual health coaching, access to the latest tools and wellness products, and customized services.
What has been the evolution of your wellness offerings from THE WELL Bay Harbor?
Sarhan: We’ve broadened our vision with THE WELL Coconut Grove by adding new features such as Wellness Dens and enhanced communal spaces like the tea garden and the aperitif bars, and advanced technology like the Vitality Lounge. The new THE WELLs are built using insights from previous projects, a thorough review of global trends in wellness, and collaboration with experts to deliver a transformational living experience.
In the case of wellness real estate there is often a thin line between paying for all the expensive amenities in the building and having too many apartments that make the building feel unexclusive. How can you strike the right balance?
Martin: At Terra we balance exclusivity, amenities and thoughtful design by prioritizing thoughtfulness in the design and making sure the project scale is aligned with the needs and wants of the community. In THE WELL Coconut Grove we kept the building at 194 units to ensure privacy, while also investing in modern amenities like the rooftop wellness paradise and 13,000-square foot wellness center. We can deliver unmatched luxury and wellness to residents without compromising their intimate and exclusive experiences.
Is it possible to achieve synergies if you have multiple locations within a city or near each other?
Martin: Absolutely. Residents can enjoy the benefits of shared expertise and a consistent wellness philosophy with THE WELL Bay Harbor Islands, as well as access to exclusive services and programs across both locations. The result is a connected ecosystem of wellness where residents can feel part of a greater community. This will enhance the appeal and value of owning property in these premier developments.
The courtyard at THE WELL Bay Harbor
Hotel brands are becoming more involved in wellness real estate. You might want to consider collaborating on a luxury or longevity hotel brand.
Sarhan: We will continue to bring THE WELL into the spaces where people spend all their time — a hotel partnership would definitely be in line with our plans for growth.
What is the future of wellness real estate?
Sarhan: I do think wellness real estate is on a path to becoming more mainstream — and that’s a good thing. In order to maintain a healthy lifestyle, homes must reflect this. Wellness features, once viewed as premium or indulgent offerings, are now expected. It’s important to note that there is a big difference between having wellness in your home, and living in an environment that promotes a fully integrated lifestyle. At THE WELL, we’re excited to be setting that standard — designing spaces where every detail, from air and water quality to programming and service, is intentionally crafted with your well-being in mind.
What other high-tech, labor-light wellness product categories, such as low volatile organic compounds (VOCs) or HEPA air filters, do you anticipate being in demand by wellness real estate projects, aside from trendy wellness amenities?
Sarhan: I see a demand for AI-driven, personalized wellness solutions such as smart homes that monitor air quality and lighting, to optimize health. Wearable health tech, in-home testing and advanced diagnostic tools will all grow in popularity.
