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Hotel Spas in the U.S.
Date:1/6/2009

esenting 57.2 percent of department revenue. "Labor costs in urban hotel spas tend to be somewhat higher than in resort spas. Urban hotel spas have lower revenues and inconsistent demand for services making scheduling more complicated," Lerner said.

Spa Profits

The average departmental profit margin for the spas in the survey sample was 24.1 percent. For comparison purposes, the average profit margin for all other operated departments in PKF's Trends in the Hotel Industry survey was 29.4 percent.

From 2006 to 2007, hotel spa department profits grew 5.8 percent. Profit growth was greater for urban spas (12.3 percent) versus resort spas (4.6 percent). "While 5.8 percent is a healthy rise over the previous year, it was less than the 6.7 growth rate for total hotel operated department income, which demonstrates the evolving spa industry still has room to improve," Baltin noted.

Hotel Spas In 2009

"As U.S. hotels are forecast to struggle with declines in occupancy, ADR, and revenue, we believe there is an opportunity for spa operators to capitalize on operational and competitive advantages," Baltin said. "Hotel spas are an important amenity to all market segments and should be leveraged with regards to meetings, conventions, and other special events. Innovative marketing can also be created to promote the spa as a 'staycation,' thereby providing a refuge for local residents."

To purchase the 53-page 2008 edition of Trends in the Hotel Spa Industry, please visit the firm's online store at www.pkfc.com/store, or call (866) 842-8754. In addition to multiple data tables that display revenue, expense, and profitability benchmarks, the report includes editorial content from the following guest authors: Lynne McNees - ISPA, John Korpi - ISPA Foundation, Mary Tabacchi - Cornell University, Jennife
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SOURCE PKF Consulting
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