2023-08-29 22:00:00
He welfare has come back to the fore in the aftermath of the pandemic, so companies of all shapes and sizes are trying to capitalize on your popularity, also in the hotel sector. Although since Hospitality Investor have warned that companies should be careful not to get carried away by somewhat inflated statistics such as those of the Global Wellness Institutewhich forecasts that the global welfare economy will reach seven trillion dollars in 2025; Meanwhile he turismo wellnessincluding hot springs, will exceed $1.2 billion then.
Medical spas such as the SHA Wellness Clinic are increasingly reinforcing their wellness offer to meet the growing demand. Source: SHA Wellness Clinic.
For Piers Schmidt, founder of Luxury Branding, “well-being has become such a huge territory that it is difficult to analyze. there is a bewildering variety of typologies within the hotel spacefrom establishments that have a massage parlor to resort spas and medical spas as Chiva-Som and SHA”. Even medical operators like the mayo clinic they seek to increase their offer of well-being, as he has pointed out.
Experts such as Ingo Schweder, CEO of GOCO Hospitality, a wellness hotel development and consulting company, warn: “Many product companies and large chains try to “wash” their products along this line. They come up with pointless wellness gimmicks and messages, with questionable intrinsic healing qualities.”
for now investments advance in the highest segment of the hotel offer and, as you have detailed Chris GrahamCEO of Graham Associatesreal estate and resort consultancy, as the wellness offering demonstrates good results at that level, there will be a trickle-down effect, as the interest among the mass public is already there.
Schweder also sees a more democratic landscape for wellness hotels in the future, especially in the area of hot spring resortssince, being located in rural areas where real estate is not so expensive, they usually have a good value for money.
Castilla Termal is committed to recovering historic buildings in inland water areas to locate its spa-hotels. In the image, the circuit of contrasts of the Valbuena Monastery. Source: Thermal Castilla.
In Spain, specialized chains operate in this segment in inland destinations such as Castilla Termal, whose differential product also includes its location in protected historic buildings. The chain will open its 5-star hotel in Brihuega on September 1, as published HOSTEL DOOR tourism news, and has just announced that it will continue to grow with a future hotel near Gandía.
The challenge of operating costs
Another aspect that investors should take into account is the constant increase in operating costswhich particularly impact hotels with a product that consumes a lot of energy like the spas.
He Wellness Real Estate Report 2023published by RLA Global in collaboration with HotStats, reveals that the average total revenue per available room (TrevPAR), which include those of all departments, also food and beverage sales and spas, have registered a year-on-year growth of between 47% and 53%depending on the weight of the wellness product in your offer.
However, as has been pointed out Roger Allenexecutive director of the RLA Global group, “such high operating costs mean that the increase in revenue does not revert in the same way in the gross operating profit (GOP). This is precisely where the minor wellness category – offering that generates less than a million dollars or 10% of total wellness and leisure revenue – shows potentially better returnsso investors should seriously consider develop a general welfare concept at the planning stage”.
The future of well-being is social
He social welfare it is an upward trend. It is not for nothing that the National Institutes of Health agree that there is evidence that socially engaged and active people tend to live longer and be physically and mentally healthier. In this sense, Schweder has ensured that “the growing recognition that community and human connection are essential components for longevity and well-being is generating the need to create structures to improve social well-being”.
Social wellness venues designed to build community and promote interpersonal interaction are proliferating. Thus, gyms, nightlife venues and medical spas are joining this trend; Therefore, hotel brands that are committed to this segment should reimagine their businesses with a focus on promoting a more human connection.
In this same line the Global Wellness Institute has noted in its 2023 annual trend report that “we have known for some time that ‘social’ was the driver of the wellness segment, but what is developing with ‘social wellness’ is different. Human connection is no longer a mere consequence of wellness experiences, but is increasingly becoming its focus. We will see a rise in new concepts that put social programming at the center, perhaps even more important than the wellness experiences themselves.”
Experts advise hoteliers to favor interaction between their clients in the design of their facilities because the next step in this segment will be social well-being. Source: Adobe Stock.
To back up its argument, the report cites the example of Peoplehooda place for guided group conversations, developed by the founders of SoulCycle. Other models include Othership in Toronto, which builds community through a social bathing experience; and Groundfloora membership club in San Francisco invented to “cure social isolation”. It has a wellness studio, an outdoor gym, a library, and a social room where they host dinner parties, comedy shows, and art classes, all in an effort to encourage connection.
First steps of ultra-luxury brands towards social well-being
Big players like Six Senses and Aman are implementing a blended revenue model of resort + residences + local wellness club in urban establishments. It is planned that the first Six Senses Place opens in London later this year, while Aman plans to include wellness clubs in properties that will begin their activity in Miami y Beverly Hills in the next years.
Luxury chains like Six Senses are implementing a combined model of resort + residences + local wellness club. In the image, the Six Senses Ibiza. Source: Six Senses.
This summer, VICI Propertiesbest known for its investments in gambling establishments, has invested $150 million in Canyon Ranchwith the goal of expanding the wellness brand by opening resorts and social clubs in urban destinations. The first clubs with exclusive membership will open in Texas in the next two years. They will feature state-of-the-art fitness and spa facilities, as well as coworking spaces and venues for special events.
Any hotel, even if it is not high-end or dedicated 100% to well-being, can include spaces designed to promote spontaneous interaction, a key element in social well-being.
In Schweder’s opinion, these spaces can be incorporated into most hotel projects, either through fitness areas, food and beverage outlets and/or coworking and lounge spaces. “Developers should think about creating less dense and intense spaces, spaces where people can breathe and just beinstead of trying to monetize every last square foot of space.”
Other wellness tourism news, in:
– IHIF: innovation in hotel spaces and services to grow revenue
– The iconic Incosol hotel will reopen in 2025 as a Wellness & Clinic Resort
– Three trends in post-pandemic luxury tourism according to Six Senses
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