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Luxury hotel treatment rooms generate more than double the revenue
By Megan Whitby 07 Feb 2020
The report is the second of its kind and was authored by Rodney Clough, senior MD at HVS and Mia Mackman, MD Spa and Wellness Consulting at HVS.
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.

The sample used in the study was comprised of 59 hotels, with 22 defined as upper-upscale and 37 categorised as luxury.

The report is the second of its kind and was authored by Rod Clough, MAI, President - Americas at HVS and Mia Mackman, MD Spa and Wellness Consulting at HVS and founder of spa and wellness consultancy Mackman.ES.

“Spas are becoming influential assets for hotels and resorts”, said the authors, “given the increasing demand for wellness and lifestyle programmes.

“With growing hotel and resort offerings being developed and dedicated to wellbeing, examining the depth of spa and wellness performance has become a fundamental factor in relation to strategic growth and valuation.

“Understanding how these assets are performing plays a critical role in core strategic planning.”

Data shows luxury hotels have larger spas on average than those in the upper-upscale category, while the former was reported to feature an average of 13 treatment rooms, compared to the latter’s 12 rooms.

It was also found that ‘spa revenue per occupied hotel room’ can significantly differ between the two product types, averaging US$18 for upper-upscale versus US$40 for luxury hotels.

Treatment-room average incomes for the year were US$110,524 per room for upper-upscale hotels and US$257,232 for luxury hotels.

Mackman told Spa Business: "As the industry continues to evolve, operators have an excellent opportunity to engage a diverse and innovative range of treatments and amenities, in addition to conventional spa services to reduce expense margins.

“As we continue to track key industry metrics and targeted data; we expect to see the integration and deployment of a broader, more inclusive scale of services, facilities and applications in the years to come."


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
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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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Jobs   News   Products   Magazine
NEWS
Luxury hotel treatment rooms generate more than double the revenue
POSTED 07 Feb 2020 . BY Megan Whitby
The report is the second of its kind and was authored by Rodney Clough, senior MD at HVS and Mia Mackman, MD Spa and Wellness Consulting at HVS. Credit: Shutterstock
As we continue to track key industry metrics and targeted data; we expect to see the integration and deployment of a broader, more inclusive scale of services, facilities and applications in the years to come
– Mia Mackman
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.

The sample used in the study was comprised of 59 hotels, with 22 defined as upper-upscale and 37 categorised as luxury.

The report is the second of its kind and was authored by Rod Clough, MAI, President - Americas at HVS and Mia Mackman, MD Spa and Wellness Consulting at HVS and founder of spa and wellness consultancy Mackman.ES.

“Spas are becoming influential assets for hotels and resorts”, said the authors, “given the increasing demand for wellness and lifestyle programmes.

“With growing hotel and resort offerings being developed and dedicated to wellbeing, examining the depth of spa and wellness performance has become a fundamental factor in relation to strategic growth and valuation.

“Understanding how these assets are performing plays a critical role in core strategic planning.”

Data shows luxury hotels have larger spas on average than those in the upper-upscale category, while the former was reported to feature an average of 13 treatment rooms, compared to the latter’s 12 rooms.

It was also found that ‘spa revenue per occupied hotel room’ can significantly differ between the two product types, averaging US$18 for upper-upscale versus US$40 for luxury hotels.

Treatment-room average incomes for the year were US$110,524 per room for upper-upscale hotels and US$257,232 for luxury hotels.

Mackman told Spa Business: "As the industry continues to evolve, operators have an excellent opportunity to engage a diverse and innovative range of treatments and amenities, in addition to conventional spa services to reduce expense margins.

“As we continue to track key industry metrics and targeted data; we expect to see the integration and deployment of a broader, more inclusive scale of services, facilities and applications in the years to come."
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