Latest
issue
GET SPA BUSINESS
magazine
Yes! Send me the FREE digital editions of Spa Business and Spa Business insider magazines and the FREE weekly Spa Business and Spa Business insider ezines and breaking news alerts!
Not right now, thanksclose this window
Uniting the world of spa & wellness
Get Spa Business and Spa Business insider digital magazines FREE
Sign up here ▸
News   Features   Products   Company profilesProfiles   Magazine   Handbook   Advertise    Subscribe  
Middle East benchmarks
Peaks & Troughs

The highs and lows of hotel spa performance in Beirut, the Dead Sea region and Doha in 2011

By Leonor Stanton | Published in Spa Business 2012 issue 2


PricewaterhouseCoopers’ (PwC) benchmarking of Middle Eastern hotel/resort spas now includes a third destination – Beirut in Lebanon – in addition to the Dead Sea region in Jordan and Doha in Qatar (sb10/3 p30). According to Mohammad Dahmash, a PwC partner in the Middle East: “We continue to benchmark hotel spas which have become an established amenity within urban and resort hotels.”

All three studies are the only benchmark reports covering the spa market in each region and their purpose, says PwC, is “to provide spa operators with a benchmark of internal spa operations that can be used as a tool for making operational decisions and driving profitability, as well as giving information on common indicators that can be used by everyone from investors and developers to the Ministry of Tourism.”

A minimum of three international hotels/resorts have been included in each market report which, according to PwC, represents a large proportion of the five-star hotels in each region, and the benchmarks track 11 key performance indicators – all revenue related. Costs and profitability are not covered by the reports because “some operators were not comfortable with providing us with this information,” says PwC’s senior manager in the Middle East Yohaan Freitas. It’s also important to note that all figures for 2011 were recorded from January to October rather than throughout the year.

Doha, Qatar
Dahmash describes Doha in Qatar as a “city increasingly known as a corporate capital and as a sporting destination”.

The hotel spas in the benchmark survey in Doha derive the majority of demand from the local market. In 2011, 60 per cent of total revenue was generated by fitness and membership revenue, while in 2010 the figure sat at 64 per cent. Further, around 85 per cent of treatments are booked by non-hotel guests. Retail generates a small proportion of overall revenues at around 3 per cent.

Average daily revenue per available treatment room (RevPATR) was us$234 (€176, £144) in 2010 and us$238 (€179, £147) in 2011, with a similar seasonality pattern. The 2011 Doha figures reported to PwC for RevPATR and RevPOTR – revenue per occupied treatment room – are the same, which is not possible with treatment room utilisation at 17 per cent. A comparison with 2010, where the figures appear to have been correctly reported to PwC, would suggest that the values are for revenues per available, rather than per occupied, treatment room.

The utilisation of treatment room hours at around 17 per cent is relatively low, consequently the revenue per available treatment hour (RevPATH) is also low at us$19 (€14, £12) in 2010 and us$23 (€17, £14) in 2011. Given the infrequent usage by hotel residents, there appears to be no correlation between RevPATH and the proportion of treatments booked by hotel guests.

August is the quietest month of the year, due to Ramadan, with utilisation of treatment room hours at an average of 9 per cent – compared with 20 per cent in both the peak months of May and March. Revenues also plummet in August with RevPATR at us$144 (€109, £89) compared with us$279 (€210, £172) in the peak month of February, and an average throughout the year of around us$238 (€179, £147).

Utilisation of therapist hours is also fairly low at 27 per cent in 2010 and 25 per cent in 2011. This decreases to 14 per cent in August. The daily revenue generated by each therapist averaged us$318 (€287, £235) in 2010 and us$375 (€283, £231) in 2011. In August it dips to us$240 (€181, £148).

Dead Sea region, Jordan
Dahmash describes the Dead Sea region in Jordan as a “well recognised wellness destination”. Yet of the three destinations benchmarked by PwC, spas in this area had the lowest revenues and utilisation levels.

Unlike the hotel spas in Doha, they relied almost exclusively on hotel residents. The hotels derive no revenues from fitness and memberships and the majority of treatments are booked by hotel residents – 91 per cent in 2010 and 2011. Retail constitutes a larger proportion of overall turnover at 9 per cent.

The average daily RevPATR was us$122 (€92, £75) in 2010. In 2011, RevPATR stood at us$101 (€76, £62), while RevPATH was us$10 (€8, £6) in 2010 and us$9 (€7, £5) in 2011. Utilisation of treatment room hours averaged 18 per cent in both 2010 and 2011.

August is also the quiet month in the Dead Sea area with utilisation of treatment room hours dropping to 11 per cent and daily RevPATR declining to us$57 (€43, £35). January and April are the peak months with utilisation of treatment room hours at 26 per cent in January and RevPATR of us$147 (€111, £91) in April.

Utilisation of therapist hours was 40 per cent in 2010 and 36 per cent in 2011. This dips to 22 per cent in August. The daily revenue generated by each therapist was us$343 (€259, £211) in 2010 and us$303 (€228, £187) in 2011. In August it dips to us$199 (€150, £123).

Beirut, Lebanon
Beirut is a “chic, high-end leisure destination in the Middle East” says to Dahmash.

Like Doha, the Beirut market derives a high proportion of revenues from the local community. Fitness and membership revenue generates around 45 per cent of total revenues and 60 per cent of treatments on average are booked by non-hotel guests.

Interestingly, although the revenue per available treatment room in Beirut is only 15 per cent higher – at us$118 (€89, £72) – than that achieved by the spas in the Dead Sea (us$101) and half of that achieved by spas in Doha (us$238), the Beirut spas significantly outperform in terms of RevPATH generating us$32 (€24, £20) versus us$19 (€14, £12) in Doha and us$14 (€11, £9) in the Dead Sea region. This suggests that the Beirut spas are possibly open for shorter hours.

January and August are the quietest months in Beirut, with daily treatment revenues per available treatment room averaging us$99 (€75, £61), while the peak month of September generates us$141 (€106, £87).

Similarly, the productivity of therapists is higher in September at us$226 (€170, £139) – for daily treatment revenue per therapist, while the comparable figure in January 2011 was us$152 (€115, £94) and us$161 (€121, £99) in August. These are significantly below the peak productivity levels for Doha at us$437 (€329, £269) in May and the Dead Sea region at us$354 (€267, £218) in January.

Average revenue per treatment sold
Across the three markets, the average revenue per treatment sold is relatively stable throughout the year, with the exception of October in Beirut where it drops significantly. Doha achieves the highest revenues per treatment sold of the three regions at an average of us$133 (€100, £82) in 2011, an 11 per cent increase on the comparable figure for 2010 which was us$120 (€90, £74). Despite the October trough, Beirut achieved an average of us$83 (€63, £51) in 2011, while the Dead Sea region shows little seasonality on this key performance indicator with an average for of us$77 (€58, £47) in 2011, a 5.6 per cent increase on the comparable figure for 2010 at us$73 (€55, £45).

Trends
This is the first year that PwC has covered Beirut, so no comparable data exists for 2010. However, a comparison of January to October 2010 versus the same period in 2011 of the Doha and Dead Sea markets shows some significant declines in terms of RevPATR and utilisation of therapists’ hours in both the Dead Sea and Doha markets.
In addition, the decline in performance has occurred in spite of increases in the average revenue per treatment sold in both of these markets.

Global comparison
So, how do these markets compare with others worldwide? The statistics don’t cover a full year – only January to October. If they are annualised (based on the 10 months provided), the revenues per available treatment room are low in contrast to the same year figures in the US for example. Further, although not yet available, the indications are that the 2011 figures for the US are likely to be higher than those of 2010.

The comparison is of course not totally correct because the Middle Eastern figures are extrapolated, but they nevertheless provide some indication of the quantum.
Although low, treatment revenues in the Doha and Beirut spas only generate around 35 per cent and 49 per cent of total revenues, respectively, with the rest coming from fitness and memberships and retail revenue. However, the Dead Sea spa market, which has the lowest treatment revenues out of the three areas, also has no fitness and membership revenue whatsoever.

In conclusion, although the studies don’t provide cost and profitability data, the low utilisation and revenues levels suggest these are difficult markets, particularly if spas are considered separate profit centres and without taking into account any benefits they might generate in terms of hotel room occupancy and average achieved room rates.

For full copies of these PwC spa benchmarking surveys in the Middle East region, email [email protected].

Spas in Beirut hotels significantly outperformed the others in the Middle East in terms of RevPATH Credit: Iryna1 / shutterstock.com
FEATURED SUPPLIERS

bbspa_Group's Gabriella Francia talks balancing tradition and tech in spas
For Gabriella Francia, co-founder of bbspa_Group and training manager, the powerful touch of a massage is the stand-out element that makes a spa experience truly unique. [more...]

Swissline’s face-saving summer solutions for oily, acne-prone skin
During the summer, hot and humid weather and pollution can activate excess sebum production, leading to clogged pores and acne. [more...]
+ More featured suppliers  
COMPANY PROFILES
Immunocologie® Skincare

As a cancer survivor, I started Immunocologie to promote skin health, and to do that, I made sure ev [more...]
Subtle Energies

Subtle Energies was founded in 1993 as a clinic by Farida Irani in Sydney Australia. [more...]
+ More profiles  
CATALOGUE GALLERY
 

+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

22-22 Jun 2024

World Bathing Day

Worldwide,
22-24 Jun 2024

IECSC Las Vegas

Las Vegas Convention Center, Las Vegas, United States
+ More diary  
 
ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
 
SPA BUSINESS
SPA OPPORTUNITIES
SPA BUSINESS HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024
Uniting the world of spa & wellness
Get Spa Business and Spa Business insider digital magazines FREE
Sign up here ▸
News   Products   Magazine   Subscribe
Middle East benchmarks
Peaks & Troughs

The highs and lows of hotel spa performance in Beirut, the Dead Sea region and Doha in 2011

By Leonor Stanton | Published in Spa Business 2012 issue 2


PricewaterhouseCoopers’ (PwC) benchmarking of Middle Eastern hotel/resort spas now includes a third destination – Beirut in Lebanon – in addition to the Dead Sea region in Jordan and Doha in Qatar (sb10/3 p30). According to Mohammad Dahmash, a PwC partner in the Middle East: “We continue to benchmark hotel spas which have become an established amenity within urban and resort hotels.”

All three studies are the only benchmark reports covering the spa market in each region and their purpose, says PwC, is “to provide spa operators with a benchmark of internal spa operations that can be used as a tool for making operational decisions and driving profitability, as well as giving information on common indicators that can be used by everyone from investors and developers to the Ministry of Tourism.”

A minimum of three international hotels/resorts have been included in each market report which, according to PwC, represents a large proportion of the five-star hotels in each region, and the benchmarks track 11 key performance indicators – all revenue related. Costs and profitability are not covered by the reports because “some operators were not comfortable with providing us with this information,” says PwC’s senior manager in the Middle East Yohaan Freitas. It’s also important to note that all figures for 2011 were recorded from January to October rather than throughout the year.

Doha, Qatar
Dahmash describes Doha in Qatar as a “city increasingly known as a corporate capital and as a sporting destination”.

The hotel spas in the benchmark survey in Doha derive the majority of demand from the local market. In 2011, 60 per cent of total revenue was generated by fitness and membership revenue, while in 2010 the figure sat at 64 per cent. Further, around 85 per cent of treatments are booked by non-hotel guests. Retail generates a small proportion of overall revenues at around 3 per cent.

Average daily revenue per available treatment room (RevPATR) was us$234 (€176, £144) in 2010 and us$238 (€179, £147) in 2011, with a similar seasonality pattern. The 2011 Doha figures reported to PwC for RevPATR and RevPOTR – revenue per occupied treatment room – are the same, which is not possible with treatment room utilisation at 17 per cent. A comparison with 2010, where the figures appear to have been correctly reported to PwC, would suggest that the values are for revenues per available, rather than per occupied, treatment room.

The utilisation of treatment room hours at around 17 per cent is relatively low, consequently the revenue per available treatment hour (RevPATH) is also low at us$19 (€14, £12) in 2010 and us$23 (€17, £14) in 2011. Given the infrequent usage by hotel residents, there appears to be no correlation between RevPATH and the proportion of treatments booked by hotel guests.

August is the quietest month of the year, due to Ramadan, with utilisation of treatment room hours at an average of 9 per cent – compared with 20 per cent in both the peak months of May and March. Revenues also plummet in August with RevPATR at us$144 (€109, £89) compared with us$279 (€210, £172) in the peak month of February, and an average throughout the year of around us$238 (€179, £147).

Utilisation of therapist hours is also fairly low at 27 per cent in 2010 and 25 per cent in 2011. This decreases to 14 per cent in August. The daily revenue generated by each therapist averaged us$318 (€287, £235) in 2010 and us$375 (€283, £231) in 2011. In August it dips to us$240 (€181, £148).

Dead Sea region, Jordan
Dahmash describes the Dead Sea region in Jordan as a “well recognised wellness destination”. Yet of the three destinations benchmarked by PwC, spas in this area had the lowest revenues and utilisation levels.

Unlike the hotel spas in Doha, they relied almost exclusively on hotel residents. The hotels derive no revenues from fitness and memberships and the majority of treatments are booked by hotel residents – 91 per cent in 2010 and 2011. Retail constitutes a larger proportion of overall turnover at 9 per cent.

The average daily RevPATR was us$122 (€92, £75) in 2010. In 2011, RevPATR stood at us$101 (€76, £62), while RevPATH was us$10 (€8, £6) in 2010 and us$9 (€7, £5) in 2011. Utilisation of treatment room hours averaged 18 per cent in both 2010 and 2011.

August is also the quiet month in the Dead Sea area with utilisation of treatment room hours dropping to 11 per cent and daily RevPATR declining to us$57 (€43, £35). January and April are the peak months with utilisation of treatment room hours at 26 per cent in January and RevPATR of us$147 (€111, £91) in April.

Utilisation of therapist hours was 40 per cent in 2010 and 36 per cent in 2011. This dips to 22 per cent in August. The daily revenue generated by each therapist was us$343 (€259, £211) in 2010 and us$303 (€228, £187) in 2011. In August it dips to us$199 (€150, £123).

Beirut, Lebanon
Beirut is a “chic, high-end leisure destination in the Middle East” says to Dahmash.

Like Doha, the Beirut market derives a high proportion of revenues from the local community. Fitness and membership revenue generates around 45 per cent of total revenues and 60 per cent of treatments on average are booked by non-hotel guests.

Interestingly, although the revenue per available treatment room in Beirut is only 15 per cent higher – at us$118 (€89, £72) – than that achieved by the spas in the Dead Sea (us$101) and half of that achieved by spas in Doha (us$238), the Beirut spas significantly outperform in terms of RevPATH generating us$32 (€24, £20) versus us$19 (€14, £12) in Doha and us$14 (€11, £9) in the Dead Sea region. This suggests that the Beirut spas are possibly open for shorter hours.

January and August are the quietest months in Beirut, with daily treatment revenues per available treatment room averaging us$99 (€75, £61), while the peak month of September generates us$141 (€106, £87).

Similarly, the productivity of therapists is higher in September at us$226 (€170, £139) – for daily treatment revenue per therapist, while the comparable figure in January 2011 was us$152 (€115, £94) and us$161 (€121, £99) in August. These are significantly below the peak productivity levels for Doha at us$437 (€329, £269) in May and the Dead Sea region at us$354 (€267, £218) in January.

Average revenue per treatment sold
Across the three markets, the average revenue per treatment sold is relatively stable throughout the year, with the exception of October in Beirut where it drops significantly. Doha achieves the highest revenues per treatment sold of the three regions at an average of us$133 (€100, £82) in 2011, an 11 per cent increase on the comparable figure for 2010 which was us$120 (€90, £74). Despite the October trough, Beirut achieved an average of us$83 (€63, £51) in 2011, while the Dead Sea region shows little seasonality on this key performance indicator with an average for of us$77 (€58, £47) in 2011, a 5.6 per cent increase on the comparable figure for 2010 at us$73 (€55, £45).

Trends
This is the first year that PwC has covered Beirut, so no comparable data exists for 2010. However, a comparison of January to October 2010 versus the same period in 2011 of the Doha and Dead Sea markets shows some significant declines in terms of RevPATR and utilisation of therapists’ hours in both the Dead Sea and Doha markets.
In addition, the decline in performance has occurred in spite of increases in the average revenue per treatment sold in both of these markets.

Global comparison
So, how do these markets compare with others worldwide? The statistics don’t cover a full year – only January to October. If they are annualised (based on the 10 months provided), the revenues per available treatment room are low in contrast to the same year figures in the US for example. Further, although not yet available, the indications are that the 2011 figures for the US are likely to be higher than those of 2010.

The comparison is of course not totally correct because the Middle Eastern figures are extrapolated, but they nevertheless provide some indication of the quantum.
Although low, treatment revenues in the Doha and Beirut spas only generate around 35 per cent and 49 per cent of total revenues, respectively, with the rest coming from fitness and memberships and retail revenue. However, the Dead Sea spa market, which has the lowest treatment revenues out of the three areas, also has no fitness and membership revenue whatsoever.

In conclusion, although the studies don’t provide cost and profitability data, the low utilisation and revenues levels suggest these are difficult markets, particularly if spas are considered separate profit centres and without taking into account any benefits they might generate in terms of hotel room occupancy and average achieved room rates.

For full copies of these PwC spa benchmarking surveys in the Middle East region, email [email protected].

Spas in Beirut hotels significantly outperformed the others in the Middle East in terms of RevPATH Credit: Iryna1 / shutterstock.com
LATEST NEWS
One&Only’s new oceanfront spa in Greece offers treatments inspired by Greek mythology and Ayurveda
One&Only Resorts has introduced a new three-storey spa on the picturesque Greek island of Kéa, located at its recently launched oceanfront property, One&Only Kéa Island Resort and Private Homes.
Report identifies diversity, equity and inclusion challenges in health club sector
Diversity, equity and inclusion in the European fitness industry is examined in a new report which provides eye-opening findings and a starting point for change.
RLA Global: Wellness hotels experience positive growth trend globally in 2023
Hotels incorporating wellness amenities experienced a significant boost in Total Revenue per Available Room (TRevPAR) in 2023, according to the latest Wellness Real Estate Report by RLA Global, produced in partnership with P&L benchmarking firm HotStats.
World leaders gather at luxury Italian wellness retreat Borgo Egnazia for G7 Summit
The 2024 G7 Summit is now underway at a destination spa resort in Puglia, Italy, with leaders from Canada, France, Germany, Italy, Japan, the UK and the US convening to address some of the world’s most urgent issues.
Minor devises new medi-wellness concept for Anantara, debuting in Phuket in Q3
Minor Hotels CEO Dillip Rajakarier has unveiled plans to introduce an innovative medi-wellness concept to the group's Anantara Hotels, Resorts and Spas brand, with ambitions to expand the concept to additional resorts in the future.
Global Wellness Day 2024 shatters records as 1 billion people unite for wellness and nature
Global Wellness Day (GWD) marked its 13th anniversary on Saturday, 8 June and was reportedly celebrated by a record-breaking 1 billion people worldwide, making it the most successful year yet.
Deepak Chopra-backed wellness resort Ameyalli to open among historic Utah hot springs
Wellness industry figure Deepak Chopra is co-developing a new wellness community and resort focused on wellbeing and longevity in Utah’s Heber Valley, centred around natural geothermal springs.
László Puczkó joins Ensana as senior health spa advisor
European health spa operator Ensana has announced the strategic appointment of Dr László Puczkó as senior health spa advisor.
EU funds Great Spa Towns of Europe youth project to foster intercultural dialogue among spa towns
The Great Spa Towns of Europe (GSTE) has announced the successful approval of its funding application under the European Town Twinning Programme. This funding will support a year- long project named INTERSPACE, aimed at fostering intercultural dialogue among communities within the GSTE network.
Gen Z women are more engaged with physical activity than previous generations, finds Ernst & Young research
According to new research from Ernst & Young, the gap between female and male engagement in sport and physical activity is narrowing, with Gen Z adult female engagement figures on the rise.
Welsh coastal hotel The Quay unveils new-look spa after £1m makeover
North Wales’ four-star The Quay Hotel & Spa in the Deganwy Marina in Conwy has invested £1 million (€1.2 million, US$1.3 million) refreshing its 580sq m destination spa with new wellness facilities.
Ritz-Carlton Reserve to land in South America with tropical retreat in Rio de Janeiro
Marriott is set to bolster its exclusive Ritz-Carlton Reserve portfolio with a brand new property in South America in Costa do Sol, Rio de Janeiro.
+ More news   
 
FEATURED SUPPLIERS

bbspa_Group's Gabriella Francia talks balancing tradition and tech in spas
For Gabriella Francia, co-founder of bbspa_Group and training manager, the powerful touch of a massage is the stand-out element that makes a spa experience truly unique. [more...]

Swissline’s face-saving summer solutions for oily, acne-prone skin
During the summer, hot and humid weather and pollution can activate excess sebum production, leading to clogged pores and acne. [more...]
+ More featured suppliers  
COMPANY PROFILES
Immunocologie® Skincare

As a cancer survivor, I started Immunocologie to promote skin health, and to do that, I made sure ev [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

22-22 Jun 2024

World Bathing Day

Worldwide,
22-24 Jun 2024

IECSC Las Vegas

Las Vegas Convention Center, Las Vegas, United States
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS