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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 7274 news stories
28 Feb 2020
ISPA has announced it will present Ella Kent with the 2020 ISPA Dedicated Contributor Award at the 2020 ISPA Conference and Expo. The award is given to an active ISPA member who’s significantly contributed to ... More
28 Feb 2020
Nicholas Naples, CEO of luxury development project AMAALA, in Saudi Arabia, has announced the appointment of Neil Jacobs, Ingo Schweder and Susan Harmsworth to the project’s advisory board. The board will guide the creation of ... More
27 Feb 2020
Spa and wellness developer, Therme Group, has announced a strategic partnership with thermal leisure operator Wund Holding to accelerate business growth. Therme Group creates water-based wellbeing resorts, while Wund Holdings specialises in operating thermal leisure ... More
27 Feb 2020
Hotel group General Hotel Management (GHM) has revealed details of The Chedi Kudavillingili, its first resort in the Maldives, later this year. The development is part of GHM’s global expansion plan which kicked off in ... More
27 Feb 2020
Founder of the Day Spa Association (DSA) and Spa Industry Association (SIA) Hannelore Leavy has died aged 77 years. Originally from Austria, Leavy began her career in the 1970s as the US marketing director for ... More
26 Feb 2020
Beauty and spa therapy educational organisation CIDESCO International has entered into an agreement with skincare brand BABOR to launch a Student Scholarship programme. CIDESCO accredited schools are invited to apply for the scholarship programme for ... More
26 Feb 2020
Six Senses will open its first location in India in the World Crest Tower by Lodha, Mumbai. The 1,522sq m Six Senses Spa Mumbai focuses on functional fitness, recovery and wellness journeys and include seven ... More
26 Feb 2020
A global touch study has been launched to “explore our attitudes towards the physical experience of touch” and investigate whether contemporary society experiences ‘touch hunger’. The Touch Test is an online questionnaire developed by researchers ... More
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
     
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Founded in 2001, TAC is an owner-managed company with more than 90 employees and four locations: [more]
 
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Living Earth Crafts® debuts new Ella Wave™ Lounger
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Seth Mattison to deliver keynote speech at ISPA Talent Symposium
Iyashi Dôme: the original Japanese sauna
Iyashi Dôme: the original Japanese sauna
Soleum Spa combines thalassotherapy and sauna with new relaxation concept
Soleum Spa combines thalassotherapy and sauna with new relaxation concept
SenSync's Vessel VR pod 'unlocks new approaches for relaxation and restoration', says CEO
SenSync's Vessel VR pod 'unlocks new approaches for relaxation and restoration', says CEO
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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.
RELATED STORIES
FEATURE: North America Research: A bright future


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
Ella Kent honoured with ISPA award
ISPA has announced it will present Ella Kent with the 2020 ISPA Dedicated Contributor Award at the 2020 ISPA Conference and Expo.
Jacobs, Schweder and Harmsworth join AMAALA advisory board
Nicholas Naples, CEO of luxury development project AMAALA, in Saudi Arabia, has announced the appointment of Neil Jacobs, Ingo Schweder and Susan Harmsworth to the project’s advisory board.
Thermal spa specialists join forces to drive global expansion
Spa and wellness developer, Therme Group, has announced a strategic partnership with thermal leisure operator Wund Holding to accelerate business growth.
GHM continues global expansion with Maldivian coral island hotel
Hotel group General Hotel Management (GHM) has revealed details of The Chedi Kudavillingili, its first resort in the Maldives, later this year.
Day Spa Association announces the passing of Hannalore Leavy
Founder of the Day Spa Association (DSA) and Spa Industry Association (SIA) Hannelore Leavy has died aged 77 years.
CIDESCO and BABOR partner to launch student scholarship
Beauty and spa therapy educational organisation CIDESCO International has entered into an agreement with skincare brand BABOR to launch a Student Scholarship programme.
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02-03 Mar 2020

Quality in Wellness and Spa

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©Cybertrek 2020

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