Flexing for success: How hotels can run profitable fitness businesses

While the demand for health-conscious travel experiences is growing, many hotels still view their gyms as simple amenities, rather than potential profit centers. This perception misses the opportunity to elevate these spaces into wellness hubs that attract new guests, enhance the overall brand experience, and generate significant revenue.

With health and fitness a growing priority for both hotel guests and local visitors, properties should be looking at new ways to ‘pump up’ their profits, positioning wellness as their "core strength." There is now an opportunity to measure return on investment for fitness equipment, enabling hotels to track both engagement and profitability, making wellness spaces not only beneficial for guests but also a measurable driver of revenue.

It’s time they looked beyond the traditional "equipment-in-a-small-room" model and embrace the rapidly evolving fitness industry to deliver modern, engaging and profitable wellness experiences.

Here’s the issue; historically, hotel gyms have been something of an afterthought. With most brand standards dictating a standard 60-square-meter space for a 100-room hotel, the result is often a poorly designed and ill-equipped area that does little to engage guests.

Equipment is frequently chosen by hotel staff without the necessary expertise, leading to a mismatched assortment of gear that falls short of meeting the expectations of today’s fitness-savvy guests. Often, hotels rely on a single supplier to outfit the entire space, with an emphasis on cardio machines, as this tends to boost the supplier's margins.

The result is underutilized facilities that lack the innovation and variety needed to engage guests who are serious about maintaining their fitness routines.

Additionally, fitness operations are frequently seen as a mere checkbox on a list of amenities, leading to underinvestment and lack of strategic focus. Hotels will happily spend significant sums rebranding their spas with major providers, but fitness is often relegated to a distant second in terms of both focus and investment. It’s a missed opportunity.

In today's world, wellness is no longer a niche concern; it has become mainstream expectation. The modern traveler is looking for a holistic experience that encompasses relaxation, fitness and wellness. A 2022 Skift survey revealed that 78% of travelers are more likely to book a hotel if it offers wellness services, which is a clear indication that properties need to adapt to these expectations or risk being left behind.

Health-conscious guests don’t just want a space to work out; they want a fitness experience that reflects the quality and innovation of the broader fitness industry. Hotels that fail to meet this expectation will continue to see their gyms fall into obscurity, as guests seek out local fitness studios or even online virtual classes.

One of the biggest issues with how fitness facilities are integrated into hotels is that they are often treated as a sunk cost — a necessary expenditure rather than a revenue-generating opportunity.

According to a 2020 Cornell University study, only 35% of hotels reported that fitness and wellness offerings had a direct positive impact on revenue growth.

But there is enormous potential here if fitness is integrated into a hotel's core strategy. Gyms, fitness retreats, wellness programs and outdoor fitness experiences can serve as significant points of differentiation for hotels, particularly when aimed at today’s health-focused clientele.

Consider the success of properties such as Equinox Hotels, where the fitness experience is deeply embedded into the brand’s DNA. Guests know they are not just staying at a hotel — they are checking into a fitness-first experience. Other examples of best practice include 1 Hotel South Beach in Florida, which offers extensive wellness programs, including rooftop yoga, holistic spa treatments, and partnerships with fitness professionals to offer a full suite of wellness experiences.

Westin Hotels, meanwhile, introduced its RunWESTIN program, providing guided runs and fitness gear loan services for guests who prefer outdoor activities over traditional gym workouts.

By adopting similar strategies, more hotels could transform their gyms into engaging wellness hubs that not only meet traveler needs, but also become significant revenue streams.

Here are five tips to turn hotel gyms into profit centers.

Rather than developing a generic hotel gym, properties should consider partnering with established fitness brands or boutique gym operators to design, equip and manage these spaces. Not only does this bring in the expertise needed to create engaging, functional spaces, but it also offers the opportunity to develop exclusive fitness programs that attract a dedicated following. By offering specialized classes, personal training or exclusive access to virtual workout programs, hotels can differentiate themselves from competitors.

Hotels can work closely with fitness professionals and wellness experts to offer dedicated fitness retreats, whether it’s a weekend boot camp or a weeklong yoga retreat. Not only does this utilize hotel space more effectively but it taps into the lucrative wellness travel market. Fitness retreats can offer a combination of healthy meals, personalized workout plans and social experiences such as group fitness classes, hikes or outdoor activities, making fitness a focal point. If creating a retreat isn’t an option, try taking a holistic approach by introducing new elements such as outdoor workout stations, fitness lounges, or even rooftop yoga studios. Wellness-focused room designs are growing in popularity, too, with air purifiers, circadian lighting, in-room snacks such as protein balls and equipment including bands, mats, massage guns and rollers all part of the offering.

The integration of technology is another key area where hotels can enhance their fitness offerings. Wearable fitness technology, apps and virtual classes are becoming commonplace in fitness, and hotels can use these tools to offer more personalized offerings. Imagine providing guests with virtual consultations, AI-driven fitness plans or in-room workout recommendations based on data from their wearable devices. Tech-driven, personalized experiences can help create lasting relationships with guests, keeping them engaged long after their stay.

A key issue in how hotels integrate fitness is timing. Often, the head of fitness and wellness is not hired until just a few months before the hotel opens, leaving little time to innovate or create a unique offering. By bringing in experts earlier, hotels can ensure that fitness spaces are designed with a clear strategy, equipped with the right tools and aligned with the hotel’s broader brand goals. If a dedicated head of wellness or fitness isn’t on board, it’s essential to bring in a consultant to guide the process. Additionally, when assigning this responsibility internally, it’s crucial to ensure that the person has the expertise to make decisions that will significantly affect the brand.

Hotels should think about how they can use fitness as a way to tell a broader story about wellness, health and self-care. For instance, a hotel might highlight local fitness trends, offer guided runs or yoga classes in scenic outdoor locations, or even host fitness events in collaboration with local influencers. By creating these narrative-driven experiences, they can access a growing segment of travelers who view fitness and wellness as essential to their lifestyle and everyday routine.

The fitness industry is evolving rapidly and hotels need to catch up if they want to stay competitive. By rethinking how they approach their fitness offerings and integrating wellness into the core of their guest experience, hotels can create unique, profitable and engaging fitness spaces that resonate with travelers and communities.

With thoughtful design, strategic partnerships and innovative programming, fitness facilities can become not just a necessity but a cornerstone of the hotel’s success.

To ensure they don’t fall into the same historical traps when creating or rethinking their gym, hotels should research the latest fitness industry trends.

Key sources of information and inspiration include leading global fitness events such as FIBO, where examples of best practice and world-class suppliers can be found, as well as thought leaders and experts sharing their knowledge and insights.

It’s time for hotels to move beyond outdated fitness models and create spaces that reflect the vibrant, dynamic world of modern wellness. By doing so, they will not only meet guest expectations but create a valuable and profitable new revenue stream.

Judith Cartwright is founder and managing director of Black Coral Consulting and a member of the International Society of Hospitality Consultants (ISHC).

The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or CoStar Group and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to contact an editor with any questions or concern.

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