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Hotel Spas in the U.S.

r DiFrancesco - Miramonte Resort and Spa, and Judith Singer - Health Fitness Dynamics, Inc. In addition Brett Blumenthal - Gensler, Jeanie Klueter - WATC, Julia Monk - BBG-BBGM, and Chris White - WTS International participated in a roundtable discussion on spa design trends.

PKF Hospitality Research (PKF-HR), headquartered in Atlanta, is the research affiliate of PKF Consulting, a consulting and real estate firm specializing in the hospitality industry. PKF Consulting has offices in Boston, New York, Philadelphia, Washington DC, Atlanta, Indianapolis, Houston, Dallas, Bozeman, Sacramento, Seattle, Los Angeles, and San Francisco.

                          U.S. Hotel Spas
                         Sources of Revenue
                 (2007 Percent of Department Revenue)

    Revenue                                  Percent of Total Revenue

    Massage                                             55.7%
    Skin Care and Body Work                             18.8%
    Salon Services                                      10.7%
    Daily Facility Use                                   0.9%
    Fitness and Personal Training                        1.9%
    Health and Wellness                                  0.3%
    Retail                                              10.3%
    Other                                                1.4%
       Total                                           100.0%

    Source: PKF Hospitality Research, 2008 Trends in the Hotel Spa
    Industry report.

                               U.S. Hotel Spas
                         Select Revenues and Expenses
                          (Change From 2006 to 2007)

    Revenue/Expense                    Change from 2006 to 2007

    Massage Revenue                              5.6%
    Skin Care and Body Work Revenue              2.4%
    Salon Services Revenue                       5.2%
    Retail Revenue        
SOURCE PKF Consulting
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All rights reserved

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