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Spas are the top-performing hotel department, says CBRE report
By Megan Whitby 24 Jan 2020
The paper is authored by Mark VanStekelenburg, division MD of CBRE Hotels Advisory and Jenna Finkelstein, director at CBRE Hotels Advisory
Spa is now one of the top-performing departments within US hotels, according to CBRE’s 2019 Trends in the Hotel Spa Industry.

The report found that total hotel revenue increased by 3.8 per cent, while spa departments reported increases of 4.8 per cent.

According to the report, revenues and profitability also improved in all hotel spa categories. 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, four 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.

Resort hotels report 62 per cent of customers are hotel guests, 32 per cent are locals/others and six 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 from 2018. This is the thirteenth 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” said Finkelstein.


News
1 to 12 of 7266 news stories
21 Feb 2020
GOCO Hospitality has conceptualised and designed a spa for Dubai’s recently opened luxury hotel, Address Sky View. Emaar Hospitality Group owns the property and has opened a collection of hotels in Dubai under the name ... More
21 Feb 2020
Spa and wellness businesses offering CBD services may be affected by proposed legislation from the Food Standards Agency (FSA), with other food agencies worldwide thought to be considering regulating CBD-related products. CBD is now regularly ... More
19 Feb 2020
Spa operator, Champneys, has come to an out of court agreement with West Sussex County Council in the UK, in relation to charges brought against it relating to food safety, the publication of nutritional information ... More
19 Feb 2020
The original Corinthia Hotel in Malta – the Corinthia Palace Hotel – has revealed further details of its new Athenaeum Spa which is scheduled to open March 2020, following a €9m (US$10m, £7.5m) year-long site-wide ... More
19 Feb 2020
ISPA has announced the addition of private coaching sessions for attendees at the upcoming ISPA Talent Symposium. Private 45-minute sessions will be available with International Coaching Federation (ICF) coaches for attendees, to help achieve both ... More
18 Feb 2020
The rapidly expanding Six Senses business, recently acquired by InterContinental Hotels Group (IHG) in a US$300m deal, has appointed IHG veteran Bryan Gabriel as chief commercial officer (CCO). “Joining Six Senses at this time in ... More
17 Feb 2020
A self-help studio marketing itself as a "first-of-its-kind self-development wellness space" will open in the heart of London in March 2020. The House of Wisdom (HOW) will focus on empowering the mind and body through ... More
14 Feb 2020
VIE Hotel Bangkok has relaunched its spa following a four-month renovation and partnered with Thai spa brand ORGANIKA, the organic spa brand created by Thai-Danish actress, Sririta Jensen. The luxury boutique hotel is part of ... More
13 Feb 2020
Guests at Six Senses Spa at Alpina Gstaad, Switzerland can make their own bath bombs and natural cosmetics in alchemy wellbeing workshops which harness the power of natural ingredients. During the 60-minute workshop, guests will ... More
10 Feb 2020
Designer Jean-Michel Gathy has created a 3D origami-inspired feature wall for Four Seasons’ spa sanctuary in its upcoming hotel in Japan – called Four Seasons Hotel Tokyo at Otemachi. Dominating the spa lobby, the flowing ... More
07 Feb 2020
Luxury hotel treatment rooms generate more than double the revenue of "normal" rooms, according to consultancy firm HVS. HVS has published its annual report which tracks spa performance and profitability from 2018 to Q3 2019. ... More
07 Feb 2020
Flexology, which markets itself as "the UK’s first dedicated stretch studio", is planning to expand across London – and ultimately take the concept to a global audience. The independently-owned brand, launched by sisters Alina and Anna ... More
     
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Jobs   News   Products   Magazine
NEWS
Spas are the top-performing hotel department, says CBRE report
POSTED 24 Jan 2020 . BY Megan Whitby
The paper is authored by Mark VanStekelenburg, division MD of CBRE Hotels Advisory and Jenna Finkelstein, director at CBRE Hotels Advisory
Hotels will continue to succeed if wellness is seamlessly incorporated throughout the hotel.
– Jenna Finkelstein
Spa is now one of the top-performing departments within US hotels, according to CBRE’s 2019 Trends in the Hotel Spa Industry.

The report found that total hotel revenue increased by 3.8 per cent, while spa departments reported increases of 4.8 per cent.

According to the report, revenues and profitability also improved in all hotel spa categories. 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, four 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.

Resort hotels report 62 per cent of customers are hotel guests, 32 per cent are locals/others and six 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 from 2018. This is the thirteenth 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” said Finkelstein.
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Despite rising labour costs, hotel spa revenue is showing strong growth, according to the latest edition of CBRE’s Trends® in the Hotel Spa Industry
Hotel spa revenue continues healthy growth trend


For the first time in 10 years, hotel spa department revenue grew at a faster pace compared to other sources of hotel revenue, according to the 2016 edition of CBRE’s Trends in the Hotel Spa Industry.
MORE NEWS
Dubai’s spa in the sky opens, with design by GOCO
GOCO Hospitality has conceptualised and designed a spa for Dubai’s recently opened luxury hotel, Address Sky View.
Regulation looming for CBD
Spa and wellness businesses offering CBD services may be affected by proposed legislation from the Food Standards Agency (FSA), with other food agencies worldwide thought to be considering regulating CBD-related products.
Champneys settles out of court in cancer advice case
Spa operator, Champneys, has come to an out of court agreement with West Sussex County Council in the UK, in relation to 19 charges brought against it relating to food safety, the publication of nutritional information and consumer protection laws.
New spa for the original Corinthia hotel
The original Corinthia Hotel in Malta – the Corinthia Palace Hotel – has revealed further details of its new Athenaeum Spa which is scheduled to open March 2020, following a €9m (US$10m, £7.5m) year- long site-wide refurbishment.
ISPA Talent Symposium will offer professional one-on-one coaching sessions
ISPA has announced the addition of private coaching sessions for attendees at the upcoming ISPA Talent Symposium.
“Six Senses has great energy”, says Bryan Gabriel as he steps up to CCO role
The rapidly expanding Six Senses business, recently acquired by InterContinental Hotels Group (IHG) in a US$300m deal, has appointed IHG veteran Bryan Gabriel as chief commercial officer (CCO).
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19-21 Feb 2020

ForumPiscine - 12th International Pool & Spa Expo and Congress

Bologna Exhibition Centre, Bologna, Italy
24 Feb 2020

Global Beauty & Wellness Exchange

Montage Palmetto Bluff, Bluffton, United States
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Hitchin, Hertfordshire SG5 1DJ Tel: +44 (0)1462 431385

©Cybertrek 2020

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