The primary revenue stream for hotels will always be derived from guestroom bookings, often referred to as ‘heads in beds’. However, in today’s hyper-commerce world with innumerous brands, simply offering a place to stay is not enough to continue ADR growth above market benchmarks. Commoditization is inevitable, unless you have strong brand equity. To stand out, a hotel must offer a compelling reason for guests to choose it over competitors. Increasingly, wellness has become a central strategy for attracting guests and commanding premium rates.
Wellness is a versatile concept that can be tailored to fit nearly any hotel brand. Defined broadly, wellness encompasses products and services that enhance an individual’s health and well-being. This definition allows hotels to incorporate wellness into various aspects of their operations, including traditional spas, guestrooms, F&B offerings, meetings and events (M&E) and guest activities. A long-term wellness strategy is crucial for driving TRevPAR, which includes all ancillary spending, and for enhancing overall profitability and asset valuation.
A notable trend within the wellness movement is the emergence of ‘wellness floors’. These can be broadly categorized into two main types, and the choice between them depends on the brand, property, and budget.
The first type of wellness floor is an evolution of the traditional spa. While massages, facials, manicures, pedicures, and other treatments remain popular, modern wellness floors can incorporate a wide range of health and wellness features. These may include mineral bathing, contrast therapy, sauna circuits, cold plunges, ice baths, steam rooms, halotherapy (salt rooms), infrared saunas and cryotherapy chambers. Advanced treatments such as hyperbaric oxygen therapy (HBOT), cyclic variations in adaptive conditioning (CVAC) systems, sensory deprivation tanks, soundscapes, and neuro-acoustic treatments can also be included to offer guests cutting-edge wellness experiences.
Wellness also extends to fitness. Many hotels invest in state-of-the-art exercise equipment and seek out practitioners who can lead yoga, breathwork, or dynamic movement classes. Additionally, wellness floors often feature a bespoke food outlet with a health-conscious menu, emphasizing informal dining and plant-based options that require minimal kitchen preparation.
The second type of wellness floor focuses on enhancing sleep quality. Similar to the club floor concept, this involves upgrading one or two guestroom floors to create wellness-oriented inventory. These rooms can be marketed as a higher product tier, offering enhanced packaging, upselling opportunities, and loyalty rewards.
Key features of sleep-centric wellness rooms include temperature-controlled beds, circadian lighting, pillow concierge services, breathable linens, blackout curtains, noise-dampening materials, branded eye masks, enhanced bathroom amenities, vitamin-infused showers, air purifiers, sleep tracking technology, sleep-inducing stretching routines available on in-room TVs, sleep-promoting turndown services, and custom herbal tea blends.
Wellness floors do not need to focus exclusively on sleep. Brands like Hilton’s Five Feet from Fitness and IHG’s EVEN Hotels have successfully created exercise-centric rooms, catering to travelers who want to maintain their fitness routines while on the road. These rooms might include in-room fitness equipment, wellness-oriented minibars, elaborate coffee services, on-demand supplements, and provisions for multiday juicing detox programs.
Whether you choose to renovate a spa into a wellness floor, create a guestroom wellness floor, or embark on a full-scale (PIP) that incorporates both, there is ample opportunity to integrate wellness into your hotel. Even midscale and economy segments can benefit from adding wellness amenities, supporting room revenues and diversifying income streams.
The path to integrating wellness depends on your brand vision. Wellness can mean different things to different people, so it’s essential to understand your target audience and tailor your offerings accordingly. A well-executed wellness strategy can lead to significant success in this burgeoning industry.
As a first example, consider a luxury hotel in a metropolitan area rebranded its traditional spa into a comprehensive wellness floor. The renovation included adding a variety of modern treatments such as cryotherapy, hyperbaric oxygen therapy, and sensory deprivation tanks. The hotel also introduced day passes for locals, boosting revenue and increasing community engagement.
Next, consider a sleep-centric guestroom floor. A premium hotel near a business district might upgrade one of its guestroom floors to focus on sleep wellness. The rooms could be equipped with advanced features like temperature-controlled beds, circadian lighting and vitamin-infused showers. The hotel could market these rooms to business travelers seeking a restful stay, resulting in increased bookings and positive guest feedback.
Then there’s the fitness and nutrition focus that bold, new brands like SIRO are taking, while other established brands like Andaz are also setting up amazing programming to appeal to this new age ‘high-performance living’ mindset. A midscale hotel near a popular tourist destination might create a wellness floor centered around fitness and nutrition. Said hotel can partner with local fitness instructors to offer daily classes and included a health-focused café on the floor. This initiative would be designed to attract health-conscious travelers and generated additional revenue through class fees and café sales.
For all three scenarios and numerous others, wellness is emerging as a key differentiator. Health is wealth, after all. By incorporating wellness elements into your hotel’s offerings, you can attract a broader range of guests, command premium rates, and increase overall profitability. Whether through spa-centric renovations, sleep-focused guestrooms or a combination of wellness features, there are numerous ways to integrate wellness into your brand. The right approach depends on your brand vision and target audience, but when executed effectively, a wellness strategy can lead to significant success and enhanced guest satisfaction.
This article may not be reproduced without the expressed permission of the authors.
