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RESEARCH


Recovery position


Spas are taking longer to recover than other departments in US hotels, but will lead in revenue in 2012 and beyond, according to PKF Hospitality Research


T 70


he US economy is slowly begin- ning to grow following the worst recession that the nation has witnessed since the Great


Depression. In line with this, its hotels are starting to claw back lost business too according PKF Hospitality Research (PKF-HR), which has been analysing the country’s hospitality industry for 75 years. The hotels are recapturing occupancy


– levels bounced back strongly in 2010 – and gradually increased their average daily room rates (ADR) in 2011. However, hotel spa operations are lag-


ging behind this rebound says PKF-HR which has just released its Trends® in the Hotel Spa Industry 2011 report. The report, based on 151 hotels with spas in the US (see p72), provides an in-depth analysis of data from 2010 and showed that spa operations were the hardest hit of hotel departments in 2008-2009 and are also taking longer to recover (see Graph 1). “We believe this is related to the priority order of hotel spa


spa business handbook 2012


graph 1: hotel Spa recovery lagS change from previous year


12% 8% 4% 0%


-4% -8%


-12% -16% -20%


2006 RevPAR 2007 F&B Revenue (PAR) 2008 2009 Spa Revenue (PAR) Source: PKF Hospitality Research, Trends® in the Hotel Industry – Full-Service Hotels 2010


patronage behind travel itself and spend in food and beverage, as spa is considered either a luxury or a benefit to personal well- ness as opposed to a basic corporate travel, group or leisure necessity,” says Andrea Foster, vice-president and national direc- tor of spa consulting, at PKF Consulting. Yet in their hey day (2006-2007) spas


enjoyed an annual change that was com- parable to the revenue per available room (RevPAR) in hotels and greater than the growth in food and beverage revenue. Due to the cyclical nature of the lodging indus- try, PKF-HR believes that hotel spa revenue will improve and has the potential to reach pre-recession levels once more.


But just what did the in-depth analysis on 2010 performance show?


Hotel spa Revenues The Trends® in the Hotel Spa Industry 2011 report showed that in general, depart- mental revenue in US hotel spas dropped by 10.5 per cent in 2010 (see Graph 2) to US$1.4m (¤1.05m, £0.88m), but that some facilities fared better than others. On average, revenue in urban hotel spas only declined by 1.1 per cent to US$1.1m (¤0.82m, £0.69m), compared to spas at resort hotels which suffered a 13.6 per cent drop to US$1.6m (¤1.2m, £1m). The report says: “We attribute the relative strength of


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