Hotel spa departments continue to contribute to the revenue and profit growth of U.S. hotels. According to the 2015 edition of Trends in the Hotel Spa Industry, hotel spa department revenues increased by 5.1 percent in 2014, while spa department profits grew 10.5 percent.
“The benefit of having a hotel spa can go beyond the direct financial contributions of the spa department,” said Andrea Foster, managing director for PKF Consulting|CBRE Hotels (PKFC) and director of the firm’s spa and wellness consulting practice. “When we compared the performance of spa properties with comparable hotels in PKFC’s Trends in the Hotel Industry database, we found that the spa hotel sample had a higher ADR in 2014 and was able to increase its room rates to a greater degree. This does not suggest causation; rather, it suggests a reasonable conclusion that guests find greater value in properties that have more extensive amenities and services available, thus creating the ability to increase rates to a greater extent.”
Spas also can help position a property as a healthy hotel if it also offers beneficial lifestyle options within other departments–rooms, food and beverage, retail, and more—that support guests’ desire to maintain a healthy routine. “More and more travelers want to maintain their fitness and nutrition routines while on the road,” Foster added.
PKF Consulting|CBRE Hotels has surveyed the profitability of U.S. hotel spa performance for nine years. The annual review compiles 19 discrete revenue and expense items within spas operated by U.S. hotels. Not included in the survey are hotel spa operations that are leased to an outside party, day spas or destination spa properties.
Spa revenues increased by 5.1 percent for the overall survey sample, but differences were observed based on property type. Spas operated within urban hotel properties enjoyed a stronger 7.0 percent gain in revenue, compared to 4.4 percent at resort hotel spas. “This is consistent with the strong performance of the primary urban markets and the return of group demand,” Foster noted.
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