Resort spas saw a bigger revenue rise than urban hotel spas / Studio Romantic/SHUTTERSTOCK
A new report by CBRE Hotel Advisory, 2019 Trends in the Hotel Spa Industry, has revealed that total hotel revenue increased by 3.8 per cent, while spa departments reported increases of 4.8 per cent.
According to the report, which was released in December, revenues and profitability also improved in all types of hotel spas. The greatest increase was reported by hotels with less than 200 rooms, with a jump of 13.3 per cent. Hotels with more than 700 rooms increased spa revenue by 3.6 per cent, while hotels with 200-700 rooms saw the smallest increase in spa department revenue, with just 0.3 per cent, during 2018.
Resort hotels have also shown greater increases in spa department profits than urban properties for the first time in seven years.
CBRE also gives a breakdown of customer segmentation for all hotel spas in 2018, finding it was comprised of 53 per cent hotel guests, 4 per cent spa members and 43 per cent locals/others.
In urban hotel spas, the percentage of locals is higher at 61 per cent. CBRE says this indicates an opportunity for hotel owners to provide packages to entice the local community into their spas for different services and to convert these local patrons into members to provide a steady income stream to all areas of the hotel.
At resorts, 62 per cent of customers are hotel guests, 32 per cent are locals/others and 6 per cent are spa members.
Authored by Mark VanStekelenburg, division MD of CBRE Hotels Advisory and Jenna Finkelstein, director at CBRE Hotels Advisory, the report features 2018 revenue and expense data from 159 US hotels with spas. This is the 13th iteration of the report.
2019 Trends in the Hotel Spa Industry is designed to provide owners and operators with the means to compare their performance against that of similar facilities, or against industry averages, and to identify their level of operating efficiency and competitiveness.
“As in prior years, despite rising labour costs, decreases in other department operating expenses, along with revenue increases led to profit gains for all hotel spas,” say the authors.
In addition, the paper highlights major trends in the hotel industry, stating that sustainability initiatives have grown in popularity, as well as hotel partnerships with major fitness brands.
“Hotels will continue to succeed if wellness is seamlessly incorporated throughout the hotel. This includes offering healthy dining options, partnering with boutique fitness classes, providing top-of-the-line equipment, and socially responsible sourcing” says Finkelstein.
Read more from this issue of Spa Business magazine
View contents of Spa Business 2020 issue 1
Editor's letter: Time to shine
As spas reach peak revenues, now’s the time for our industry to act as a catalyst in working out how we measure the impact of an experience and the ‘return on wellness’ says Spa Business' editor Katie Barnes
Promotional feature: TechnoAlpin
If you want to deliver a hot and cold experience as part of your wellness programme, adding a snowroom will introduce a delightful and more gentle form of cold therapy, as Sara Brenninger explains
Trends: Spa Foresight™
Climate emergency, gen alpha and brain optimisation are among Spa Business’ latest trend predictions
Promotional feature: The Wellness
Investing in children’s facilities gives a spa and wellness offering a competitive edge, as well as helping the next generation achieve their potential, explains Mohammed Ibrahim, CEO of industry design and consultancy practice, The Wellness
Promotional feature: RKF Luxury Linen
As a symbol of luxury, innovation and quality in the world of spa and hospitality, much of RKF Luxury Linen’s success comes from its highly client-centric design process, says CEO Riadh Bouaziz
Design: Heat of the moment
From giant golden eggs and converted ski lifts to rustic, hand-crafted huts, we showcase the latest in heat experience design and innovations
In today’s premium spa environment, every detail shapes the guest experience – right down to
the softness of towels and the freshness of linens. [more...]
Resort spas saw a bigger revenue rise than urban hotel spas / Studio Romantic/SHUTTERSTOCK
A new report by CBRE Hotel Advisory, 2019 Trends in the Hotel Spa Industry, has revealed that total hotel revenue increased by 3.8 per cent, while spa departments reported increases of 4.8 per cent.
According to the report, which was released in December, revenues and profitability also improved in all types of hotel spas. The greatest increase was reported by hotels with less than 200 rooms, with a jump of 13.3 per cent. Hotels with more than 700 rooms increased spa revenue by 3.6 per cent, while hotels with 200-700 rooms saw the smallest increase in spa department revenue, with just 0.3 per cent, during 2018.
Resort hotels have also shown greater increases in spa department profits than urban properties for the first time in seven years.
CBRE also gives a breakdown of customer segmentation for all hotel spas in 2018, finding it was comprised of 53 per cent hotel guests, 4 per cent spa members and 43 per cent locals/others.
In urban hotel spas, the percentage of locals is higher at 61 per cent. CBRE says this indicates an opportunity for hotel owners to provide packages to entice the local community into their spas for different services and to convert these local patrons into members to provide a steady income stream to all areas of the hotel.
At resorts, 62 per cent of customers are hotel guests, 32 per cent are locals/others and 6 per cent are spa members.
Authored by Mark VanStekelenburg, division MD of CBRE Hotels Advisory and Jenna Finkelstein, director at CBRE Hotels Advisory, the report features 2018 revenue and expense data from 159 US hotels with spas. This is the 13th iteration of the report.
2019 Trends in the Hotel Spa Industry is designed to provide owners and operators with the means to compare their performance against that of similar facilities, or against industry averages, and to identify their level of operating efficiency and competitiveness.
“As in prior years, despite rising labour costs, decreases in other department operating expenses, along with revenue increases led to profit gains for all hotel spas,” say the authors.
In addition, the paper highlights major trends in the hotel industry, stating that sustainability initiatives have grown in popularity, as well as hotel partnerships with major fitness brands.
“Hotels will continue to succeed if wellness is seamlessly incorporated throughout the hotel. This includes offering healthy dining options, partnering with boutique fitness classes, providing top-of-the-line equipment, and socially responsible sourcing” says Finkelstein.
Read more from this issue of Spa Business magazine
View contents of Spa Business 2020 issue 1
Editor's letter: Time to shine
As spas reach peak revenues, now’s the time for our industry to act as a catalyst in working out how we measure the impact of an experience and the ‘return on wellness’ says Spa Business' editor Katie Barnes
Promotional feature: TechnoAlpin
If you want to deliver a hot and cold experience as part of your wellness programme, adding a snowroom will introduce a delightful and more gentle form of cold therapy, as Sara Brenninger explains
Trends: Spa Foresight™
Climate emergency, gen alpha and brain optimisation are among Spa Business’ latest trend predictions
Promotional feature: The Wellness
Investing in children’s facilities gives a spa and wellness offering a competitive edge, as well as helping the next generation achieve their potential, explains Mohammed Ibrahim, CEO of industry design and consultancy practice, The Wellness
Promotional feature: RKF Luxury Linen
As a symbol of luxury, innovation and quality in the world of spa and hospitality, much of RKF Luxury Linen’s success comes from its highly client-centric design process, says CEO Riadh Bouaziz
Design: Heat of the moment
From giant golden eggs and converted ski lifts to rustic, hand-crafted huts, we showcase the latest in heat experience design and innovations
Four Seasons Resort The Nam Hai in Hoi An, Vietnam, has put together a Global Wellness Day
(GWD) agenda with activations rooted in nature and shaped by four pillars of Joy – in
alignment with the day’s theme #JoyMagenta.
The Global Wellness Summit (GWS) will celebrate its 20th anniversary at the 2026 event in
Phuket, Thailand, later this year with the theme: The Science, Art and Soul of Wellness.
Auko, an all-inclusive development, is opening in Phong Nha in Vietnam in Q3 2026, with a
series of 30 tented eco-lodges and wellness hospitality operations by Lumina Wellbeing.
Therme Manchester’s 28-acre development, which will include interconnected glass pavilions
that measure 65,000sq m, will be the largest bathing and wellbeing attraction in the world once
complete, according to prof David Russell, CEO of Therme UK.
Naples Beach Club, a Four Seasons Resort, has opened a 2,800sq m spa called The Sanctuary,
with the design and concept inspired by the Native American people that populated Florida’s
Southwest coast – the Calusa.
Swire Hotels’ luxury hospitality brand Upper House has revealed it will roll out its two-day
House of Healing retreats at its three hotels in Hong Kong, Chengdu and Shanghai.
LVMH-owned beauty house Guerlain will launch up to five spas with partners a year as part of
its plan to expand globally, according to the brand’s international spa and wellness director,
Diane Davody.
A new global study by Kevin Kelly and Peter Yesawich, called WELLSurvey 2.0, has revealed
more than half of consumers in the UK, US and Germany would not choose numerous high-
profile wellness resort brands for a future trip.
In today’s premium spa environment, every detail shapes the guest experience – right down to
the softness of towels and the freshness of linens. [more...]
