Mr. Anderson

Spas, Health & Fitness

Residential Trends in Spas

By Peter Anderson, President, Anderson & Associates

Spas can now be found in modest strip malls, serious medical complexes and indulgent luxury resorts, underscoring their ubiquitous presence in the life of the modern consumer.

As well, at the annual I-Spa conference in November 2006 it was reported that spa revenue at destination resorts had just eclipsed golf revenues. Reasons for this trend include spa visits are attractive to time-starved guests as they require much smaller commitment than a round of golf. Further, more men are using spa services, independent of the fear or privilege of being considered a meterosexual. This trend is fully supported as many spas now feature services specifically targeting men's needs.

But this is just the beginning; the spa/lifestyle trend lines are not so easily defined. Residential trends and spa environments lines of demarcation are blurring. Destination spas Such as Mirival, Canyon Ranch and Red Mountain Resorts, are creating residential components highlighting their consumers' desires to have easy, immediate and equity access to a spa lifestyle. Destination resorts with full-service wellness spas like the Montage, La Costa, and the Four Seasons are creating residential components for much the same reason. And to round out the picture private communities such as Big Horn, Laughlin Ranch, and Kiawah Island are developing wellness environments to enhance their residential communities.

Given these data points it should be no surprise that affluent, planned communities and destination spas and resorts that once saw golf as their social spine are now augment and supplanting spas for that very same purpose. Not only do spas require a much smaller foot print than golf course but they can better address issues of healthy life style choices while still providing tremendous opportunities for socialization and the creation of a vibrant community environment. Further, unlike golf, spas are year-round amenities in any climate.

Resorts that have pursued this approach have noticed higher ADRs, greater spend per guest and longer average lengths of stay. Residential properties, that have chosen to develop spa amenities, spa cuisine, and spa activities as an integral component of their community's offerings have also noticed faster unit absorption at premium price points ten to fifty percent over market. In softening real estate markets, a community-focused spa may be the factor that maintains sales velocity or hedges against price erosion.

So the question at hand is "Will spas provide the catalyst to continue to create points of differentiation in real estate projects or will they become ubiquitous "must haves". In order to effectively answer this question, let us first look at some factors in

Amenity creep will continue to grow with market expectations and advancing technology. To that end, spas and wellness centers will be incorporated in the designs of resorts and residential projects. Over the long-haul spas will be an integral part of most resorts, residential developments and "mature" communities, the extent of the wellness component will be predicated on price points of the residence or resort, itself. As with most amenities, today's luxuries will become tomorrow's standard features. (Think, Statler's slogan at the turn of the last century, "A bed and a bath for a buck and a half).

The point of product demarcation however will not be measured in the basic and ubiquitous tangible amenities that enhanced life style environments in the near future, such as 24-hour on-call massage, state-of-the-art jet lag recovery, or personal walk-in hydrotherapy tubs but rather in their intangible components. True wellness environments will have state-of-the art technologies, protocols and procedures but will succeed based on their ability to capture, enhance, and stay true to the zeitgeist of wellness...creating a socializing environment based on connection, self-actualization and responsibility. Doing this will create sustainable returns on all levels.

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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