Hotels that invest heavily in spas, wellness centers and other facilities for relaxation are finding out an unpleasant truth: More revenue does not always equal more profit.
Major wellness hotels saw their profit growth lag behind in the past year. Gross operating profit per bedroom grew only 1%. Even minor wellness properties managed to achieve 5%.
This is according to a study comparing hotels that offer wellness programs that generate at least $1 million in revenue per year with those that have a smaller wellness program. This report, by RLA Global, was compiled using data from HotStats, which collected information on more than 11,000 hotel properties worldwide.
Where the Money Goes
Payroll is the biggest drain on margins, as it is a fixed expense regardless of occupancy.
Gregory Miller, Vice President, Lodging, Experienced Leisure, and Wellness Equity Research, at Trui
