Adding
a Spa to Your Condo Hotel?
Consider These Critical Factors
By:
Gary Henkin (President, WTS International, Inc.)
If you're like most condo
hotel and resort developers, it is likely that your
site already has or will have a reasonably sophisticated
exercise or fitness center for your guests. But have
you considered adding spa services as well? Growth
in the spa industry over the past five years has been
dramatic to say the least.
The
Spa Business Is Thriving
A few statistics are worth considering. The spa business
is today the fourth largest leisure industry in the
U.S. with over $11 billion in annual revenues.
There are an estimated
12,000 spas in the U.S. (inclusive of resort and hotel
spas, day spas, medical spas and destination spas)
which is up 25% from only three years ago.
Consumers can now find
spa treatments at hotels and resorts, doctor's and
dental offices, health clubs, airports, cruise ships
and malls.
Spa
User Demographics
Women account for slightly more than 70% of the market,
but spa utilization by the male population has been
growing at a rapid rate during the past several years.
Currently, about 20%
of all spa goers are 55 years of age and older, but
the average age of the spa consumer is 40. Average
income from this group is in excess of $70,000 per
annum and over 50% have college degrees.
A
Means to Stand Out From the Competition
With this information as a backdrop, many hotels and
resorts are seeking better  ways
to delineate themselves in the marketplace while others
simply want to stay up with competition. The development
of a spa has become, in many instances, an almost
required amenity.
It wasn't such a long
time ago that a hotel's description of their "spa"
consisted of one or two treatment rooms offering a
very limited selection of services. Further, the facility
was often located in an inaccessible area of the hotel.
That perception has changed dramatically.
Spas
Have Become Far More Sophisticated
Spas have undergone a significant transformation.
This includes design and equipment upgrades to the
numbers, types and diversity of the treatment and
services menu.
In today's extraordinarily
competitive and stressful environment, travelers are
often weary when they arrive at their destination
and have come to expect a certain level of sophistication
in leisure facilities, particularly at more upmarket
hotel and resort properties.
A
Necessary Hotel Amenity
With hotels seeking to consistently differentiate
themselves while meeting the requirements of an ever
increasingly sophisticated consumer, the inclusion
of a spa can assist in achieving these expectations.
Thus, the addition of
a quality spa can become an important deciding factor
in both individual and group decisions in selecting
a particular hotel or resort site versus another.
How then should one best
determine whether to add a spa and what size and scope
represents the most viable financial and operational
modality? Putting it another way, how should a hotel,
condo hotel or resort prepare a spa or leisure complex
for operational and financial success? It all starts
with the planning process!
Planning
for a Spa
Before taking a "dart throw" approach, consider
the potential benefits which can be derived from a
needs analysis (or feasibility) study.
 This
step should receive due consideration prior to expending
significant capital in the design, equipments procurement
and construction of a spa which then may or may not
meet the expectations of your clientele.
This is true whether
you are planning or are already underway with a hotel,
resort, residential or mixed-use development.
A needs analysis study
will typically offer valuable information upon which
the owner/developer can make the best decision whether
to proceed to build the spa and, if so, what type,
size, scope of services, and location would be most
viable.
The report should afford
the owner a market study, competitive analysis, recommended
space allocation and a preliminary operating pro forma.
If a decision is made to proceed, spa planning and
design can then move forward based on a circumspective
process.
Spas
Deliver an Experience
A spa is qualitatively different from other hotel
development amenities. In the end, what is being delivered
to the patron is more than a service - it is "an
experience." People who are making decisions
each day as to their hotel or resort of choice are
doing so, in part, as a lifestyle choice.
As such, design aesthetics
will play an all important role in the consumer's
mind in his/her choice of spas and in how the spa
will eventually perform from a financial and operational
perspective.
Before the design process
has begun, it is crucial to think through and develop
a concept or "theme" for the spa upon which
the design will ultimately be based. Remember that
a successful spa appeals first and foremost to the
senses.
Developing
a Spa Theme
Research should be done in developing the spa theme
and concept with regard to  unique
features in the surrounding locale, possible use of
indigenous products in creation of signature treatments
and what the most appropriate "story" for
the spa might be.
That said, each property
must also consider potential challenges such as upper
floor (or below grade) site locations, remote locales
with difficult access, etc. Before any details are
finalized, the ramification of value engineering decisions
relative to finishes, space use and other issues must
be clearly defined.
Determining
Spa Design
Spa design should begin with discussions and meetings
between the owner, the architecture and interiors
firm(s), a qualified spa consultant and others on
the project team.
The spa business is a
management intensive one, and operational discussions
must be incorporated into the design process. A clear
vision as to how the spa will operate and what treatments
and services it will offer are necessary to develop
an optimal facility design
Treatment
Rooms
Treatment rooms are the heart of any spa facility.
A basic treatment room is typically 120 - 140 square
feet in size and includes appropriate lighting, hand
sink, countertop and storage cabinets.
All treatment room walls
should be constructed to minimize the impact of sound,
vibration, and odor from neighboring spaces. The basic
construction cost of a massage treatment room ranges
from $40 to $55 per square foot (excluding the specialized
furniture, fixtures and equipment); wet rooms are
more expensive.
Massage
Rooms
Massage rooms will be the most numerous since this
treatment, in all its forms, normally accounts for
about 55 - 65 percent of the services given. An FF&E
(furniture, fixtures and equipment)  package
costing between $2,500 and $3,500 should be sufficient
to make a treatment room suitable for massage.
Beginning with the basic
treatment room template introduced above, a facial
room can be created with a slightly more expensive
treatment table and specialized equipment to administer
skin care treatments.
Other services such as
herbal wraps, mud treatment, and hydrotherapy require
a greater investment in both construction and equipment.
While room size will
remain unchanged, these rooms will require floor drains,
ceramic tile floors and walls, and more extensive
plumbing. Construction cost for these rooms approximate
those of restrooms and locker rooms - roughly $90
to $110 per square foot.
Equipment packages for
wraps, mud, and other body treatments can cost from
$3,000 to $4,500 depending upon what specific treatments
the spa offers.
Hydrotherapy equipment
packages are the most costly. They usually include
a tub (with pumps and a water purification system),
Vichy showers, and a Scots hose. An equipment package
such as this can cost $20,000 to $30,000.
Manicures
and Pedicures
Manicures and pedicures are frequently offered in
spas and  require
a dedicated space. Depending upon the number of manicure
and pedicure stations, the nail center can range in
size from 300 - 500 square feet.
A manicure station occupies
about 30 square feet and a pedicure station about
50 square feet. Typical equipment packages for these
services range from about $2,000 to $3,500.
Hair
Services
Hair services are a variable that should also be considered
as a part of the spa's strategic business planning,
which may include several styling stations at 35 -
45 square feet each. The hair styling needs of a typical
vacationing spa patron are modest. Two to four stations
for shampoo, blow-drying, and make-up application
should be sufficient for most hotel or resort spas.
Locker
Rooms
Locker rooms with changing areas, toilet facilities,
showers, and the like are also important components.
Although a hotel guest or resident may not be far
from their own room, a spa treatment usually leaves
a patron with little desire to travel any appreciable
distance before they have had a chance to recuperate
and clean up a bit.
Comfortable locker rooms
with lounges, quiet area, and ample bathing facilities
will be necessary to complete the "spa experience"
for patrons. Such areas usually cost between $85 and
$100 per square foot to build (including fixtures)
but can cost significantly more if high-end finishes
(e.g. marble, water features) and lavish furnishings
are chosen.
Sanitation
and Housekeeping
Sanitation and housekeeping are crucial to a spa's
success. Spa treatments require a steady supply of
fresh linens, sheets, pillowcases, towels, bathrobes,
etc. Further, every spa should also include laundry
and storage areas, a dispensary, employee break room,
administrative offices and robe/relaxation lounge(s).
Critical
Factors
There are a variety of critical factors (aside from
planning and design) that impact  the
overall success of any spa. These include the quality
and experience of the spa staff, training methodology,
product selection and display, operating procedures,
promotion/marketing, maintenance, financial controls
and the consistency of customer service to name just
a few.
Appropriate planning
and design, concept development and consistency in
the delivery of quality treatments and services are
crucial to the success of a hotel or resort spa. There
are many variables to consider in the design, construction
and equipping of a spa.
The capital investment
must be justified by the projected financial performance
of the facility and by the more "intangible impact"
that the spa will have on occupancy levels, REVPAR,
competitive advantage and delineation for the property.
Spas are important magnets
for hotel guests, meeting and conference groups, retail
consumers and local day spa patrons. An aesthetically
pleasing spa that delivers a relaxing, memorable experience
can be extremely profitable if operated and promoted
correctly while offering the developer an opportunity
to delineate and set apart the hotel or resort property.
Gary Henkin is President, WTS International, Inc.
Based in Rockville, MD, WTS is one of the world's
foremost spa, fitness and leisure consulting and management
firms. They can be contacted at (301) 622-7800 or
at ghenkin@wtsinternational.com.
Their Web site is www.wtsinternational.com.
|
