INVESTIGATION
Te Miraval Living project was beleaguered with city zoning restrictions that meant it could not include memberships or day-spa memberships in its model, either of which would have helped increase revenues and cover overheads
American Leisure’s The Edge is a successful residents-only development with extensive wellness amenities
meant it could not include memberships or day-spa business in its model, either of which would have helped increase revenues and cover overheads. “It just didn’t really have a chance,” she says. Canyon Ranch Miami, by contrast, does not rely solely on resi-
dents: crucially, the model includes a condo-hotel, whose owners are able to put their properties into a rental programme when not in residence. “Te hotel is essential from the revenue standpoint, because the hotel guest is a more intensive user of everything – the restaurant, the spa services, the doctor – than a resident would be,” says Milner. “[Another reason] the hotel is interesting is that it’s the number one source of buyers. Tey come here, they enjoy everything we have to offer and then they enquire. A very high percentage of people who buy have visited the hotel previously.” Te property is also set up to sell memberships if needed, he says,
although “aſter this winter season, between the increased closing and occupancy of units and the increased occupancy of the hotel, I really don’t think we’re going to have the capacity.”
Wellness lifestyle While Ellis concedes that including a rental programme and/or a local business element makes the model more viable, she remains unconvinced of the immediate potential for destination spa-style real estate developments. “Canyon Ranch Living Miami has gotten through and I’m delighted it’s continuing and I wish it every success. But if Canyon Ranch can’t do it easily, it’s going to be extremely dif- ficult for others to make it work.”
32 Read Spa Business online
spabusiness.com / digital What she does see as a trend, both in the US and further afield, is
the consumer’s appetite for ‘wellness lifestyle’: residential develop- ments where people can access the kind of services they need to lead a healthier, more fulfilled life – spas, fitness and/or sports facilities, relaxation spaces, restaurants serving healthy food – but without the heavy-duty programming of a destination spa (or its associated overheads). And it’s a trend Ellis believes is only going to grow as the health-conscious Baby Boomer generation reaches retirement age, adding that affluent young families are another key market. Tom Johnston, chief operating officer of American Leisure, which
specialises in delivering wellness lifestyle solutions to residential devel- opments, agrees the demand is there: while pools, health clubs and even small spas have been features of luxury apartment buildings for some years now, a large number of condo developers are now investing much more heavily in wellness and leisure amenities, he says. “People want luxury, but they don’t have the luxury of time, so they’re looking for a lifestyle where all the amenities they need are at home – the spa, fitness centre, community spaces – all under one roof.” Although some US developers with this kind of offering are strug-
gling to move units in the wake of the recession, particularly in the cities, this is not indicative of the US market as a whole, says John- ston, who points out that American Leisure grew its business in 2010. Nor does he believe that developments must include condo-hotel units, sell memberships or open up to day guests to justify a sig- nificant wellness investment – the key, he says, is to make sure that the amenities are not overbuilt: “I wouldn’t say they’re essential, but
SPA BUSINESS 1 2011 ©Cybertrek 2011
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