TRENDS IN THE HOTEL INDUSTRY SA M PL E 2017 Edition
TABLE OF CONTENTS Publisher s Message... i Credits... v Note to Readers... 1 Financial Tables... 2 Financial Summary... 37 State of the U.S. Spa Industry, ISPA... 40 Spa Glossary... 43 About CBRE Hotels... 46 vi
Detail Financial Data Tables The following data tables display the 2016 financial performance of hotel spas sorted by: Location Spa Department Revenue Spa Square Footage Number of Treatment Rooms Number of Hotel Guest Rooms 2
HOTEL PROFILE - DETAIL SURVEY By Spa Location All Hotel Spas Urban Hotel Spas Resort Hotel Spas Number of Properties 141 46 95 Average Guest Rooms 418 351 451 2016 Occupancy 71.4% 74.2% 70.4% Percent Change from Prior Year 2.7% 4.9% 1.8% 2016 ADR $279.19 $288.51 $275.49 Percent Change from Prior Year 2.6% 0.7% 3.3% 2016 RevPAR $199.47 $214.06 $193.97 Percent Change from Prior Year 5.3% 5.7% 5.1% 2016 Total Hotel Revenue Per Property $61,388,189 $49,916,176 $66,943,059 Percent Change from Prior Year 5.2% 7.5% 4.3% 2016 Total Spa Revenue Per Treatment* $13.61 $11.97 $14.30 Percent Change from Prior Year 0.8% 3.0% 0.1% 2016 Total Spa Revenue Per Customer* $2.79 $2.83 $2.78 Percent Change from Prior Year 1.2% 3.0% 0.4% Square Feet Per Spa Facility 11,829 8,369 13,504 Spa Treatment Rooms Per Property 13 10 15 Salon Stations Per Property * 4 3 4 2016 FTE Number Per Property * 13 14 13 Percent Change from Prior Year 0.5% -0.5% 1.1% 2016 Percent of Spa Revenue by Source* Hotel Guests 51% 39% 60% Members 3% 1% 4% Locals / Others 46% 60% 36% Note: * Calculated only for the properties that provided this data. 3
2016 AVERAGE DOLLARS PER SPA Revenue / Expense Category All Hotel Spas * N/C - Data Not Comparable Hotel Spas By Location Change From Prior Year 5 Urban Hotel Spas Change From Prior Year Resort Hotel Spas Change From Prior Year Massage $ 1,136,193 7.0% $ 941,183 9.9% $ 1,230,619 5.9% Skin Care and Body Work $ 267,577 3.8% $ 246,525 7.9% $ 277,771 2.1% Total Spa Services $ 1,403,770 6.3% $ 1,187,708 9.5% $ 1,508,390 5.2% Salon Services (Includes Hair and Nail) $ 226,050 0.7% $ 182,364 2.8% $ 247,203 0.0% Total Treatment Revenue $ 1,629,820 5.5% $ 1,370,072 8.5% $ 1,755,593 4.4% Daily Facility Use $ 30,726 7.2% $ 9,341 5.9% $ 41,080 7.3% Fitness and Personal Training $ 18,674 5.2% $ 5,386-22.7% $ 25,108 9.3% Health and Wellness $ 1,122 1.8% $ (0) N/C $ 1,665 1.8% Membership Fees $ 50,240 6.5% $ 64,285 3.1% $ 43,439 9.1% Sub-Total $ 1,730,581 5.6% $ 1,449,084 8.1% $ 1,866,885 4.7% Retail (Merchandise and Clothing) $ 199,689 0.2% $ 155,935 1.0% $ 220,876-0.1% Other Revenue $ 172,430 8.1% $ 87,627 31.2% $ 213,493 4.5% Allowances $ (5,497) 11.0% $ (6,546) N/C $ (4,989) -26.0% Total Spa Department Revenue $ 2,097,204 5.2% $ 1,686,100 8.0% $ 2,296,265 4.3% Cost of Goods Sold Retail Cost of Goods Sold $ 102,220 0.6% $ 85,723 1.6% $ 110,208 0.2% Total Cost of Goods Sold $ 102,220 0.6% $ 85,723 1.6% $ 110,208 0.2% Gross Profit $ 1,994,984 5.5% $ 1,600,377 8.4% $ 2,186,057 4.5% Labor Costs Non-Management $ 520,651 4.7% $ 378,140 8.3% $ 589,656 3.7% Management $ 89,019 7.9% $ 69,118 10.3% $ 98,655 7.2% Service Charge and Distribution $ 75,767 28.2% $ 59,958 50.4% $ 83,423 21.9% Contract/Leased/Outsource Labor $ 4,420-38.1% $ 4,667-49.4% $ 4,300-29.8% Bonuses and Incentives $ 224,434 9.4% $ 246,894 8.1% $ 213,559 10.1% Unassigned Labor $ 13,007-2.3% $ 9,697-23.2% $ 14,610 7.0% Total Salaries and Wages $ 927,298 7.3% $ 768,474 9.5% $ 1,004,203 6.5% Payroll Related Expenses $ 300,975 4.8% $ 271,223 9.6% $ 315,382 2.9% Total Labor Costs $ 1,228,274 6.7% $ 1,039,697 9.5% $ 1,319,585 5.6% Operating Expenses Ambiance and Decorations $ 2,662 1.3% $ 3,579-2.3% $ 2,218 4.3% Professional Products (Health and Beauty) $ 39,835 2.7% $ 36,618 9.0% $ 41,393 0.2% Laundry and Dry Cleaning $ 46,071 4.7% $ 41,533 6.1% $ 48,268 4.2% Linen $ 12,434-5.3% $ 10,645-8.8% $ 13,300-3.9% Operating Supplies $ 39,462-2.1% $ 27,784 5.5% $ 45,116-4.1% Uniforms $ 6,262 0.8% $ 7,026 8.7% $ 5,892-3.2% All Other Expenses $ 143,535-5.6% $ 108,563-3.8% $ 160,468-6.1% Total Operating Expenses $ 290,260-2.3% $ 235,749 0.9% $ 316,655-3.4% Total Labor and Operating Expenses $ 1,518,534 4.8% $ 1,275,445 7.8% $ 1,636,240 3.7% Department Income (Loss) $ 476,450 7.6% $ 324,931 10.8% $ 549,817 6.7%
FINANCIAL SUMMARY 2016 Hotel Spa Revenue by Property Type 9,000 6,000 3,000 0 $5,012 $5,089 Mix of Revenues All Hotels 2016 Percent of Department Revenue 54.2% 3.4% 3.4% 3.4% 12.8% 10.8% 1.5% 0.9% 2.4% $4,807 All Hotels Resort Hotels Urban Hotels Dollars Per Available Room Percent of Total Hotel Revenue 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 9.5% 8.2% 2016 U.S. Hotel Revenues: Change from 2015 Rooms 2.6% 2.5% Food and Beverage 1.5% 1.4% Other Operated Departments 1.3% 1.2% Miscellaneous Income Total Hotel Revenue Hotel Spas 2.4% 2.2% 2.1% Massage Skin Care/Body Work Salon Services Daily Facility Use Fitness/Personal Training Health and Wellness Membership Fees Retail Other 5.2% 6.7% 6.5% 0% 2% 4% 6% 8% $ Per Available Room $ Per Occupied Room 2016 Hotel Spa Revenue by Property Type Dollars Per Occupied Guest Room $20 $19 $18 $17 $16 $19.17 $19.76 $17.71 All Hotels Resort Hotels Urban Hotels 37
State of the U.S. Spa Industry By Eileen Pitts, ISPA Public Relations Manager For the 18 th year, the International SPA Association (ISPA) Foundation commissioned PwC to conduct its U.S. Spa Industry Study. The 2017 report presents the state of the industry in 2016, as indicated by total revenues, spa visits, average revenue per visit, the number of spa locations, and staffing levels, also known as the industry s Big 5 statistics. The information required to compile the Big 5 statistics was collected through a large nationwide survey of spa businesses which was conducted in spring 2017. The spa industry registered modest revenue growth of 3.1 percent in 2016. Total revenue is estimated to have increased from $16.3 billion in 2015 to a record $16.8 billion in 2016. The increase in spa revenues was driven mainly by a rising number of spa visits (+2.5 percent) and growth in the number of spa locations (+1.1 percent). In 2016, new spa openings are estimated to have exceeded spa closures by a margin of 240, bringing the total number of spa locations up to 21,260 from 21,020 in 2015 (+1.1 percent). The ISPA U.S. Spa Industry Study reflects a pleasing picture of steady growth in the industry. The key metrics are all continuing their upward trend and the numbers in employment highlight the importance of the spa industry to the US economy, said Colin McIlheney, Global Research Director for PwC. For the first time in the history of ISPA s U.S. Spa Industry Study, the total number of spa visits rose above 180 million to 184 million in 2016, up from 179 million in 2015 (2.5 percent increase). The industry s steady growth in overall revenue, locations, and revenue per visit is a promising indicator of the impact spas continue to make. The average revenue per visit increased slightly in 2016, to a just over $91 (+0.6 percent). Employment We are thrilled to see our industry s hard work and dedication truly pay off with more and more consumers enjoying spas, said ISPA President Lynne McNees. An increase in visits means higher demand of spa services, which demonstrates a very positive outlook. As jobs are created to meet this demand, we will continue to promote the benefits of a career in the spa industry. The study also reports nearly 33,000 job openings available in the spa sector alone. Employment in the spa industry can offer many benefits, such as schedule flexibility, opportunities to work in a variety of international environments, exceptional training, and career growth. The spa industry presents many opportunities for employment in a business that offers job security and career growth as it continues to flourish. At the 2017 ISPA Conference & Expo, the professional beauty and spa industries announced they have joined forces to elevate and celebrate careers in the spa industry. The Beauty Changes Lives Foundation has partnered with ISPA to launch a nationwide call to action. The GET YOUR DREAM JOB campaign 40