What& #039; s the ROI of Wet Spa Amenities? - Estheticnet

What& #039; s the ROI of Wet Spa Amenities?

When constructed using modern methods and technology as discussed within our recent article, Hydrothermal areas in wet spa amenities can involve a significant investment. This investment can provide similarly significant returns; however , there are barriers to overcome along with owners and operators who traditionally view these services as a free-use amenity type of model.

We wish to offer an alternative approach to how wet spa areas may become revenue generating centers using an example based on a location type of hydrothermal spa facility, with male and women gender segregated areas that include: Sauna, Steam room, Laconium, Igloo or ice chamber, Foot spa, Cool-down showers, Hydrotherapy pool or Relaxation lounge.

This kind of facility size allows 2, 500 square feet for each gender, 5, 000 square feet total, including blood circulation space, but excluding locker rooms or treatment places.

How much would a facility such as this cost?

Using a model of 5, 500 square feet, designed and installed, with all technology as well as the hydrothermal features built, ready to receive finishes, consider the subsequent sums:
◾ 5, 000 sq ft @ $400/sq ft = $2, 000, 000. 00
◾ 18, 500 sq ft of finishes @ $50/sq ft = $1, 000, 000. 00
◾ Grand Total = $3, 000, 000

These figures exclude any building services or even infrastructure which would be necessary to support a space, whatever it really is used for.

How is this investment came back?

2, 500 square feet associated with gender-segregated space will easily support 60 guests any kind of time one time. Assume that 20 men and 20 women would be going to the hydrothermal areas of the spa every 4 hours of the 12 hour operating day. The average charge for making use of such facilities at a luxury property could be $55, however for the purpose of this exercise we are going to work on a lesser model having a $40 facility fee.

◾ 20 guys + 20 women = 40 guests x $40 = $1, 600
◾ Guest turnover @ 3 times a day x $1, 600 = $4, eight hundred a day
◾ Allowing 360 days a year functioning = $1, 728, 000 income per year
◾ Payback period of 21 months!

How about overheads?

Staffing levels for hydrothermal facilities are very low. There are no expensive therapists in order to staff, just attendants keeping the facility clean. On 35% of income, overheads would reduce the payback time period to 32 months. A higher overhead at 50% associated with income would reduce the payback period to 42 weeks or 3. 5 years. Given an average life expectancy associated with at least 12 years for a well-maintained facility, a hydrothermal facility will show a significant return on the initial investment decision over its lifetime, even while charging a modest service usage fee of $40 per guest.

The facility usage fee will more often than not be the cheapest item on the spa menu. This entrance fee furthermore serves as an unique way to get new guests into the hot tub, providing a captive opportunity to up sell guests on various other treatments, services and products.

Courtesy of: Matt Williamson, Design for Leisure

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