Evaluation of return on investment when adding a spa to a hotel

There has been a lot of debate lately about the idea of ​​adding a spa to an existing hotel and how to determine if it is a worthwhile investment. Unfortunately, there is no easy solution and every real estate and market is unique. There are many things to consider before making a decision about icing. First, it’s important to identify why you want to build a spa. Next, you need to evaluate your market, competitors, current financial data and forecasts to determine if the spa is suitable for your property. Working with spa and hotel consultants is an important step needed to assist in feasibility analysis, decision-making processes, and design details, but in this article, at least on feasibility methods. Offering ideas for adding a spa to your hotel. This article explains why hotels add spas and the funding to support them.

It’s important to start by understanding aHotel spa alsace   few things about the spa industry. At the 2010 Diagonal Reports USA Spa Market, the size of the spa market in 2009 was $ 15.5 billion. According to the 2010 ISPA Industry Report, spa consumers have visited 20,600 spas in the United States 143 million times. Although these numbers have decreased compared to the previous year (in both reports where the numbers are inconsistent), it should be remembered that 2009 was significantly different from today. These numbers are expected to increase as the economy stabilizes and consumers become more and more aware of the benefits of receiving spa treatments. Diagonal Reports states that the spa industry began seeing a 1.5% recovery in 2011, with most spas showing more recovery and some spas showing more than 15% recovery. The spa industry has grown exponentially since 1999, with more than 4.2 million visits, with only 4,140 spa companies providing $ 4.2 billion. When linking the spa market to the leisure industry, it ranks fourth after golf, health, rocket clubs and sailing lines. The reason I point this out is that a new trend in the spa world is to create synergies with other recreational industries such as those mentioned above. In short, spas also make up a small percentage of the revenue in these industries. This is a trend that will continue, with club and hotel owners being heavily influenced.

It is also important to create a client profile to ensure that the client demographics match the spa visitor demographics. This information also depends on your age. For example, some spa consumers are interested in alternative therapies, others are interested in fitness and education, and others are simply interested in relaxation. As you can see, there are many things to consider when deciding on a spa concept, and it is important to find a guest and a consultant who understands what they want. Designed for business travelers, spas are very different from spas designed for young professionals, baby boomers, and families on vacation (of course, there are also emerging markets for family spas). However, according to the 2011 Coyle Hospitalitys Consumer Priorities Study, relaxation and stress management continue to be the main reasons consumers visit the spa. And what are the main reasons people go on vacation? Now you can see the correlation between the spa and the hotel. This is nothing new. Simply put, spas are primarily luxury, just like vacations, and the two are inextricably linked. Here are the main points.
According to the July issue of Hotel Management, 2,951 new hotels and 354,100 new rooms are under construction from the first quarter. There is no data available that you can find, but I think at least 70% of projects with 4 stars or higher include spas. Why? Looking at why hotels build spas in the first place, this is a really very easy answer. You probably already know the shortcomings of a hotel without a spa, so read on. Identify the benefits and why it makes sense to add a spa. The most common drawback is that you can lose market share to competitors who already own a spa and you can discount your room in an attempt to attract a portion of that market share. It’s possible to argue that not everyone booking a hotel wants spa treatments, but it’s also important to understand that a large population wants spa treatments. Even if guests are not interested in massages and facials, they can still enjoy the spa in non-treatment areas such as the sauna, steam room and swimming pool. Another big advantage is that the hotel spa is superior to a separate spa or day spa. Traditionally, the spa industry calls these areas “non-income spaces.” This is because these areas are considered part of the service to guests receiving treatments. The same is true for hotels, but to improve the report, guests can be charged for using only the wet area. In some cases up to $ 75 per day.