Skip to content

Search

Latest Stories

Report: Spas contribute substantially to U.S. hotel revenues

The report draws data from a sample of 59 hotels and resorts

SPAS HAVE BECOME major revenue contributors for U.S. upper-upscale and luxury hotels, according to the HVS 2019 performance report on spa departments. The report’s authors conclude a new focus on wellness by hotels could continue the trend into the future.

Spas in upper-upscale hotels generate 5.2 percent of total revenue of U.S. hotels on average and luxury hotel spas generate 7.4 percent, according to the report, co-authored by HVS President for the Americas Rodney Clough and HVS Managing Director of Spa and Wellness Consulting Mia Mackman. It is based on data from a sample of 59 hotels and resorts, in which 22 are in the upper-upscale category and 37 are in the luxury category.


Points from 2018 through the third quarter of 2019, total spa revenue for upper-upscale hotels recorded as $28,294,259, while the amount for luxury hotels is $122,228,644.

Upper-upscale hotels have an average of 12 treatment rooms, or a median of 8 treatment rooms while luxury hotels have 13 treatment rooms on average or a median of 11 treatment rooms.

The average spa revenue per treatment room in upper-upscale and luxury hotels are $110,524 and $257,323 respectively.

The report further finds an average spa departmental expense ratio of luxury hotels as 76.1 percent and it is 73.2 percent for upper-upscale hotels.

In total, the average spa departmental ratios for expense and profit is 76:24.

"Spas are becoming influential assets for hotels and resorts given the increasing demand related to wellness and lifestyle programs,” Clough and Mackman said in the report. “With growing hotel and resort pillars being developed and dedicated to well‐being, examining the depth of spa and wellness performance has become a fundamental factor of strategic growth and valuation. Moreover, understanding how these assets are performing plays a critical role in core strategic planning, including ADR and RevPAR performance."

This is not the first time U.S. hotel spas increasing their revenue over five percent. A 2015 report shows a 5.6 percent increase in spa department revenue from 2014-2015 as per the CBRE Hotels’ Americas Research.

More for you

Noble Investment Group Mobile Alabama

Noble breaks ground on StudioRes in Mobile, AL

Summary:

  • Noble broke ground on StudioRes Mobile Alabama at McGowin Park.
  • The 10th StudioRes expands Noble’s long-term accommodations platform.
  • Noble recently acquired 16 WoodSpring Suites properties through two portfolio transactions.

NOBLE INVESTMENT GROUP broke ground on StudioRes Mobile Alabama at McGowin Park, a retail center in Mobile, Alabama. It is Noble’s 10th property under Marriott International’s extended stay StudioRes brand.

Keep ReadingShow less
AHLA Foundation expands hospitality education

AHLA Foundation expands hospitality education

Summary:

  • AHLA Foundation is partnering with ICHRIE and ACPHA to support hospitality education.
  • The collaborations align academic programs with industry workforce needs.
  • It will provide data, faculty development, and student engagement opportunities.

THE AHLA FOUNDATION, International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration work to expand education opportunities for students pursuing hospitality careers. The alliances aim to provide data, faculty development and student engagement opportunities.

Keep ReadingShow less
Report: Global RevPAR to rise 3–5 percent in 2025

Report: Global RevPAR to rise 3–5 percent in 2025

Summary:

  • Global hotel RevPAR is projected to grow 3 to 5 percent in 2025, JLL reports.
  • Hotel RevPAR rose 4 percent in 2024, with demand at 4.8 billion room nights.
  • London, New York and Tokyo are expected to lead investor interest in 2025.

GLOBAL HOTEL REVPAR is projected to grow 3 to 5 percent in 2025, with investment volume up 15 to 25 percent, driven by loan maturities, deferred capital spending and private equity fund expirations, according to JLL. Leisure travel is expected to decline as consumer savings tighten, while group, corporate and international travel increase, supporting RevPAR growth.

Keep ReadingShow less
Hotel data challenges report highlighting AI and automation opportunities in hospitality

Survey: Data gaps hinder hotel growth

Summary:

  • Fragmented systems, poor integration limit hotels’ data access, according to a survey.
  • Most hotel professionals use data daily but struggle to access it for revenue and operations.
  • AI and automation could provide dynamic pricing, personalization and efficiency.

FRAGMENTED SYSTEMS, INACCURATE information and limited integration remain barriers to hotels seeking better data access to improve guest experiences and revenue, according to a newly released survey. Although most hotel professionals use data daily, the survey found 49 percent struggle to access what they need for revenue and operational decisions.

Keep ReadingShow less
Hyatt Way partnership

Hyatt taps Way for unified guest platform

Summary:

  • Hyatt partners with Way to unify guest experiences on one platform.
  • Members can earn and redeem points on experiences booked through Hyatt websites.
  • Way’s technology supports translation, payments and data insights for Hyatt.

HYATT HOTELS CORP. is working with Austin-based startup Way to consolidate ancillary services, loyalty experiences and on-property programming on one platform across its global portfolio. The collaboration integrates Way’s system into Hyatt.com, the World of Hyatt app, property websites and FIND Experiences to create a centralized booking platform.

Keep ReadingShow less