Spas are sleek, sexy and expensive amenities that may add to your development costs between $200 - $700 per square foot, depending on plumbing, heating, water, drainage, weight, electrical and ventilation requirements. Additional layers of expense can be created when architects/owners/designers envision high-end custom amenities and spectacular levels of finishes. In many cases these costs can be justified based on their ability to generate revenue, enhance current operations and make owners and operators feel as they are exercising their perceived competitive responsibility to "keep-up-with-the-Jones." However from a cost/benefit analysis, each expense or investment must be weighed against its revenue potential. A market study and feasibility analysis gives the operator the ability to:

Significant capital investment used without market intelligence to back it up is money very poorly spent. The following paragraphs outline some of the anomalies related to spa feasibility and underscore it importance.

Rapid Expansion of Supply and Demand - A Fast Dance

Unlike the lodging environment where the basic product is relatively standard, spa environments are far from standard, and depending on the market, spas can cater to both the local population as well as the hotel and resort guest. Currently the spa market is in rapid expansion mode, with supply ...