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PROPERTY


The most dominant infl uence on fi nancial success when modelling the revenue generation of the spa is not due to a specifi c brand or type of operation, but to an assurance of competence


Is the spa to act as a profi t centre in its own right? Is it to drive hotel room rate, occupancy and length of stay? Given that the answer to these questions is oſt en ‘yes’, what trade-off s are acceptable? For example, how important is exclusive spa use for hotel guests? T is may be very desirable for the consumer experience at the high-end, but it can hold back the valu- able revenue potential from day visitors. T ere’s also the question of contracts. Is


signing one operator contract best or is agree- ing details with and between a hotel operator and spa brand and/or operator preferred? If one of the top priorities is profi t maxim-


isation, the individual circumstances need to be analysed carefully to assess how this can be best achieved. Across diff erent markets and regions certain key aspects can assert diff erent infl uences. For example, brand strengths. How strong is the hotel brand in the specifi c mar- ket and how strong are the spa brands under consideration? If the hotel brand is still emerg- ing, perhaps a well known, independent spa brand can help to establish an assured level of quality. T is was a big factor with Harlequin Properties, which is developing fi ve resorts in the Caribbean – associations with ESPA and other leading leisure personalities and brands such Gary Player, Pat Cash and Liv- erpool Football Club, were all used to shape what the customer can expect from Harlequin


98 spa business handbook 2011


1 1


Starwood: Away Spas


2


Starwood: Heavenly Spas


3


Starwood: Bliss Spas


generation spa with a signifi cant wellness ele- ment”. T is has added to the hype surrounding this hotel, and excited the local market.


OPERATIONAL CONSIDERATIONS


Hotels and Resorts. Its fi rst site, Buccament Bay, opened in mid-2010 and its second, T e Merriks, broke ground last September. Brand loyalty and recognition can also play


a role in the success of a spa and hotel in a competitive market. For example, ESPA high- lights that some guests choose a hotel based on it having an ESPA spa. T is has clearly been understood by Corinthia Hotels which has chosen ESPA to create an exceptional spa experience within its new London hotel, open- ing early 2011. Its brief to ESPA was to raise the bar when it comes to spa off erings within London luxury hotels. What ESPA has created, and will be launching, is a “pioneering next


Another major aspect that comes into play when choosing a spa brand is expertise for opening and running a spa successfully. Due to the shortage of spa expertise across some areas of the world, developers/owners need to ensure that they chose an option with ade- quate resources to help the spa achieve its aims and objectives. In developed markets the options may be


quite open, but in certain locations it can be diffi cult for a hotel operator to provide the spa expertise that a specifi c project might require. T e concern then becomes one of continuity of the brand experience – the quality must be the same in Baku as it is Berlin. An established independent spa brand would be worth consid- ering in situation. For example, ESPA has built


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