Mr. Anderson

Spas, Health & Fitness

Spa Development and Asset Management: Development Management

By Peter Anderson, President, Anderson & Associates

If you are not proactive early in this process you will ultimately realize a spa that is poorly designed, inefficient to operate and unable to support you operational needs.

First and foremost, if you are contemplating the development of a spa at your lodging facility, do you already have an unused or underutilized space in your hotel, or will you need to build the additional facility? The cost difference between the two can be significant and because it is all about the revenue per square foot that your spa will generate, and its ability to enhance your existing revenue sources so that you can justify your construction costs. A spa in a lodging environment must compliment and enhance your current operations. Spas are no longer amenities reserved for 4 and 5 star resorts. They are found in many varied lodging products, and when done correctly significantly bolster room rate, extend length-of-stay, fill in low- and shoulder-season demand, augment food and beverage revenues and create added spa and related retail revenue.

How big and How much?

Asking what a spa costs is akin to asking the price of a car. The costs can be all over the map, depending on the amenities and finishes you require. However, a good place to start is to look at land cost in your area. Are you developing a spa within your hotel, on excess land that is part of your resort, or do you have to purchase adjacent land to execute your plan? Land cost will give you an indication if spa development is the highest and best use for your parcel.

If you are looking to convert existing space as a renovation, your cost per square foot may range from slightly over $100 per square foot to upward of $400 per square foot. A good starting point is to think in the $200 to $300 per foot range. We have seen 5-star accommodations built for $200 per square foot in areas where land is relatively inexpensive. Conversely, if there are issues with poor management and numerous change orders, the costs can sky rocket.

New building is a little trickier, and normally ranges from $200 - $500 per square foot. Once again the lower portion of the range correlates to 3 star facilities, while the $350 and above range is normally reserved for the 5-star spas. Like with renovations, poor project management can result in significant cost increases. It is always easier and cheaper to have the architect erase a wall on the blue print that it is have the contractor submit a change order, or worse knock down a wall. Please remember that these are ranges and estimates developed over time from actual projects, anomalies with your project may nullify the linear interpretation of these ranges.

Destination spas, by definition, are resorts that draw demand because of the spa. In these situations it is essential to have a low treatment room to guest room ratio. If a repositioning of your facility might place you near the classification of destination resort, you should develop one treatment room for every 4-6 guest rooms. If your spa is more of an amenity than a principle demand draw, you might be looking at a ratio of one treatment room for every 8-10 guest rooms. Clearly, if you have a large resort hotel, the ratio may approach as much as 20 guest rooms for each treatment room.

Flexibility and Functional Obsolesce

A spa should be designed for ultimately flexibility. Today's hot spa trend will inevitably morph and change as it develops. You may find yourself with a 1,000 square foot yoga studio that can be heated to 104 degrees that no longer appeals to middle aged Gen "X'ers". Developments in technology, demographics, economics and medicine have a profound effect on how we use spas and their overall impact on our life style. The best way to address this is to develop core components of ones spa that are rooted in traditional (i.e., time tested and culturally approved) spa modalities. Culture is credibility. You can provide variations to a theme, but always remember the theme. Secondly build into the infrastructure of you spa some flexibility. If you are not sure that at some time in the future a treatment room should/could be a wet or dry area, have it plumbed now and cap the pipes. The incremental cost while you are laying out your spa is negligible when you compare it to the cost of a retrofit (and this is without factoring in lost business.) Lastly, reserve a portion of your spa that can accommodate a variety of tasks. A galley kitchen nested next to a socializing area of the spa can be used as a display cooking area for celebrity chefs and life-style classes. This allows one to maximize your space and vary your spa menu.

Space - Public and Private

Spas should have between 50 to 65 percent of their space revenue producing. When one factors in circulation, storage, employee lounges (a must), reception and administration this is very aggressive, but necessary. Upon entering a spa the tone for the entire experience is set. If guests are assaulted with poorly displayed retail areas that crowd reception they will feel it is less of a special one-0f-a-kind experience and more of a retail trap.

Temperature and Humidity

The changing areas should continue the theme of the spa. In the changing area the guest is usually left alone for the first time in their spa experience. They have the ability to check in corners and see if the spa is REALLY clean. Here you establish trust and continue to support guest expectations. Unless the guest is a frustrated engineer, they most often do not want to "see the strings" that support the magic of the spa. An HVAC system (or systems) needs to be tailored to address issues of humidity, condensation and temperature control. Positively sloped ceilings in high humidity areas will ensure that condensate does not fall on your guests.

Your guests are often naked or close to that, moving between wet, dry, hot and cool areas. Zoned climate control is essential, especially in the treatment rooms. A 25 year-old marathon runner in for a sports massage will most likely have different temperature requirements than a pre-menopausal in for a Swedish massage 10 minutes earlier. Turning the room for the next guest may include adjusting the temperature, before or immediately after the client begins treatment.

Sound and Light

Sound is a double edged issue in spas. Ambient white noise or soft music in public spaces is expected. In the treatment room the guest should have the option of what they want to listen to, including their own music. For that reason sound systems must be flexible to accommodate all needs. Just as important as keeping the appropriate sounds in the treatment rooms, it is equally important to keep other noises out. This is first done during the layout stages of the spa. To the greatest extent possible, use distance in your favor. Don't have treatment rooms backed up to changing areas. When distance is not possible, ensure that your architect employs every method possible to create effective sound barriers. Seal and insulate to ensure that no sound channels are present in your design. (Outlets back to back between treatment rooms are cost efficient way to plan your space, but can be a super highway for noise.)

Lighting is also another special consideration. The intensity and type of light can dictate or at least suggest the mood for the room. Vary your ambient mood lights and ensure that wherever possible they are set on dimmer controls to ensure maximum flexibility. Halogen or task lights are necessary in the cabinetry for your therapists, and overhead lights are necessary for turning the room and regular cleaning. Ensure that there are light baffles between the back- and the front-of-the house. It is jarring for a client to be in that "jello state" post-massage or -facial, and be wandering back to the quiet room only to be shocked into reality by a flood of florescent light coming from the break room as staff enter or leave it.

Electricity and Water

Many believe that electricity and water do not mix, except in spas. Their commonality is that they require significantly more expertise and attention in a spa environment than most other environments because together their use is so much greater than in other environments. Microdermabrasion machines, towel cabbies, hydrotherapy tubs, facial steamers and even La Stone heaters draw power. It is essential that the power requirement for each room be estimated and sized accordingly. It is also prudent to factor in an overage for electrical needs that have not yet been realized or invented. Seldom will the requisite 3 or 4 outlets in a treatment room adequately address all of the power needs for that area. .

If your spa is not in a steel sky scraper or on the first floor ensure that the building can support the excess weight created by a person sitting in 60 gallons of warm bubbling water. Remember, water is heavy. Also, you need to guarantee an abundant supply of hot water and most importantly adequate drains (with cleanout valves) in each room. You are asking for a flood (not good for business) if your drain cannot keep ahead of the six headed, rain head shower and/or all four of your hydro therapy tubs draining at once.

Developing an efficient spa takes detailed planning. You may know what you want today, but plan now for change in the future. Hire professionals and get expert advice on everything.

Peter Anderson is a principal of Anderson and Associates, which focuses on the issues of spa development and wellness programming for hotels and resorts. Mr. Anderson consults for the inclusion of spa programs and wellness therapies. Mr. Anderson's firm conducts market and financial analysis by tracking and evaluating spa and wellness trends which include emerging healing modalities in the allopathic and alternative medical disciplines. Mr. Anderson holds a Masters from Cornell and a Bachelors of Arts in Psychological Basis of Behavior from the University of Pennsylvania. Mr. Anderson can be contacted at 310 -392-9368 or peter@anderspa.com Extended Bio...

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