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Hotel and Resort Spas - “Not Just Another Fad”
by Gary Henkin
President
WTS International
In today’s extraordinarily competitive environment, many hotels and resorts are seeking better ways to delineate themselves in their local or regional marketplace. Others simply want to stay up with the competition. Spa development has taken its place as a required amenity in numerous upmarket hospitality sites throughout the world alongside other features, such as high-speed Internet access.
It wasn’t too long ago that hotels and resorts would promote their small gym with a few pieces of weight equipment, a couple of treadmills and a stair-climber as their state-of-the-art “health club.” Similarly, just a few years ago, their on-site “spa” consisted of two or three treatment rooms which offered a limited selection of services and was often located in a cavernous and inaccessible area of the hotel; they were also likely to tout their beauty parlor or barber shop area as a “salon.” All of that imagery and perception has changed dramatically for the traveling consumer over the past five years. Today, many hotel and resort properties have sophisticated fitness and wellness centers with an excellent mix of cardiovascular, circuit weight and free weight machinery which may rival the exercise facility layout that a guest might see at their local health club back home. Likewise, spas have undergone a similar transition, both from a design and equipment perspective to the numbers, types and diversity of treatments and services offered. Business travelers in today’s market are often weary when they arrive at their destination and have come to expect a certain level of sophistication in leisure facilities at more upscale properties. With hotels seeking to stand out and differentiate themselves while meeting the requirements of an ever sophisticated and demanding consumer, the addition of a spa can go a long way to meeting these expectations. Thus, a quality spa (and fitness) component can, in fact, become an important deciding factor as to whether an individual consumer or a group chooses a particular site.
How then, should one best determine whether to add (or upgrade) a spa and what size and scope represents the most viable financial and operational modality? Putting it another way, how should a hotel or resort prepare a spa and leisure facility for operational and financial success? It all starts with the planning process. Before taking a “dart throw” approach as all too many properties have done, consider the potential benefits derived from the development of a feasibility study or needs assessment analysis. This step should receive due consideration prior to launching into a decision to expend significant capital dollars in spa development and embarking head first into a formidable design process. A typical needs analysis study will offer valuable information upon which the owner or developer can make the most intelligent decision whether to actually proceed to build the spa and, if so, what type, size and location would be most viable. In addition to a market survey, the study will also contain a thorough competitive and financial analysis. If a decision to proceed is made, the planning and design process can move forward.
A spa is qualitatively different from any other resort amenity. Although real dollars will be spent and earned by a successful spa, in the end, what is being sold to the patron is more than a simple service – it is an experience. As such, design aesthetics will plan an all-important role in the performance of the spa. This reality has several implications for design and construction.
It is important to include an experienced spa consultant or operator in the planning process right from the beginning. Before any details are finalized, the ramification of “value engineering” decisions relative to the finishes and space sizes must be fully understood. Remember that a successful spa appeals to the senses first and foremost. In addition, each property will have to consider potential construction challenges, such as upper floor sites, remote locations with difficult access, or the effect of snow or tropical climates. Similarly, each property should take into account the cost differentials for union labor, availability of exotic materials, debt service, and the like.
Treatment rooms are the heart of any spa facility. A basic treatment room is typically 100 – 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 cost of a treatment room ranges from $40 to $55 per square foot (excluding the specialized furniture, fixtures and equipment). Massage rooms will be the most numerous since this treatment, in all its forms, normally accounts for about 50 – 60 percent of the services given. An FF&E (furniture, fixtures and equipment) package costing between $2,000 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. Although construction costs will probably not increase, the price for equipment can easily range from $5,000 to $8,500, or more.
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 $85 to $95 per square foot. Equipment packages for wraps, mud, and other body treatments can cost from $2,800 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 might easily cost $15,000 to $20,000.
Manicures and pedicures are frequently offered in spas and require a dedicated space normally larger than a treatment room. Depending upon the number of manicure and pedicure stations, the nail center can range in size from 120 – 300 square feet. A manicure station occupies about 30 square feet and a pedicure station about 50 square feet. Typical equipment packages for these services average about $1,800 and $3,500, respectively.
Hair services are a variable that should be considered as a part of the spa’s strategic business planning. Seldom will a hotel or resort patron utilize a hair stylist for much more than styling services. However, spas that plan to seek recurring business from a local population base should recognize the potential profits that salon services can generate and plan accordingly. Specifically, they should plan several styling stations at 75 – 85 square feet each, and associated construction and equipment costs of $50 per square foot and $3,500 per station, respectively. The hair styling needs of a typical vacationing spa patron, however, are modest by comparison. Two or three stations for shampoo, blow-drying, and make-up re-application should be sufficient for most resort spas. Although the investment in these stations is approximately the same as for a regular salon, a resort spa needs fewer of them and will use them in a much more limited manner.
Locker rooms with changing areas, toilet facilities, showers, and the like are also probable components of the resort spa. Although hotel guests will not be far from their own guest 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 $95 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.
An exercise facility should also be considered if there is not one already available to guests. Although spa patrons and exercisers have different interests, a properly designed spa and exercise facility can serve both groups quite well. If the spa will include exercise areas, they too, can be built for approximately $40 to $50 per square foot (Note: group exercise studios usually cost about the same, but require the addition of a suspended wood floor which adds $10 to $12 per square foot to the cost of the space). As a rule of thumb, exercise machines require floor space of about 50 square feet each. This includes circulation space around the station. The three general categories of exercise equipment – cardiovascular, circuit, and free weights – should all be considered for the fitness center.
Clearly, there are many possibilities to consider in both the construction and equipping of a spa facility. The investment must be justified by the projected financial performance of the completed facility. A spa is a management-intensive area, and careful operational planning should always precede the physical design of the space. Thus, the involvement of a consultant, spa director and/or spa management entity in the early stages is critical. For example, the number and configuration of treatment rooms and even the types of support spaces (i.e. storage areas, retail displays, lounges, etc.) depend heavily upon the specific services that the spa will offer.
A productive spa operation requires careful planning, functional design, and quality construction to deliver the financial performance and the high-impact guest experience desired. At the end of the day, a well-planned spa can help to delineate a hotel or resort from its competitors while positively impacting a property’s A.D.R. and REVPAR.