The Canyon Ranch Portfolio According to the Global Wellness Institute, wellness is now a $3.72 Trillion industry. This is an increase from approximately $2 Trillion in 2006. Global markets have taken note and many consumer product, and service companies are finding that they cannot maintain their market positions without a strategy around wellness. Despite its size, the wellness industry is not an organized movement, but is a category of goods and services that consumers have assembled around health, wellbeing and general happiness. Typically, the wellness category includes: Beauty & Anti-Aging, Healthy Eating, Nutrition and Weight Loss Wellness Tourism Fitness and Mind-Body Preventive and Personalized Health Complementary and Alternative Medicine Wellness Lifestyle Real Estate Spa Industry Thermal/Mineral Springs Workplace Wellness In 1979, Mel and Enid Zuckerman decided to create a place where wellness would be viewed as a cohesive whole, and opened the Canyon Ranch Wellness Resort in Tucson, Arizona. This was followed by the Canyon Ranch Wellness Resort in Lenox in 1989. In 1999, Canyon Ranch opened what is now the largest spa in the world in the Venetian and Palazzo hotels. In 2004, the SpaClub onboard Cunard s Queen Mary 2 ocean liner was launched and SpaClubs were launched onboard Regent & Oceania, and Celebrity cruise lines in 2009, and 2014 respectively. Canyon Ranch was recapitalized in 2015, resulting in the controlling interest being held by Crescent Real Estate Equities in Ft. Worth, Texas. Susan Docherty, Canyon Ranch CEO has now assembled a new Executive Board to drive the growth of the enterprise. Canyon Ranch continues to be known as an authentic, original provider of healthy vacations and lifestyle transformation. The Canyon Ranch brand and operational excellence continue to provide industry leading average daily rates and exceptional pricing lift for branded real estate.
TUCSON Opened 1979 120,000 sq. ft. Spa/Fitness/Wellness Facilities 17,000 sq. ft. Life Enhancement Center 165 Rooms 57,327 Guest Nights in 2015 100 Residences highest real estate values in Tucson 300% PSF premium over immediate neighborhood
Lenox Opened 1989 120,000 sq. ft. Spa/Fitness/Wellness Facilities 126 Rooms 42,966 Guest Nights in 2015 19 Condominiums under construction
Las Vegas Opened 1999 140,000 sq. ft. Spa/Fitness/Wellness Facilities, serving 7,100 Hotel Rooms (not managed by Canyon Ranch) 94 Treatment Rooms 274,160 Experiences and access passes sold in 2015 8 Consecutive years as Forbes 4-Star Spa Currently #1 of 112 Spas in Las Vegas as rated by Trip Advisor
Kaplankaya Opened 2016 75,000 sq. ft. Spa/Fitness/Wellness Facilities 141 Rooms 150 Villas 38 Treatment rooms
SPA CLUB AT SEA LAUNCHED 2004 Queen Mary 2 LAUNCHED 2009 Regent & Oceania Cruises LAUNCHED 2014 Celebrity Cruises
Part 1: Feasibility Assessment 1 2 3 Initial Contact / Site Parameters Canyon Ranch understands acutely the locations, site size, entitlements, and market conditions that are necessary for our business models. We can quickly determine site suitability without excessive expenditure of time or money. Site Visit If a site looks good on paper, we will visit and explore the immediate area to learn what we can about arrival sequence, adjacencies, and site conditions. Spatial & Financial Modeling We believe that feasibility is determined both architecturally and from an operational and financial modeling perspective. We share these findings with partners so that both parties can agree whether or not to proceed. 4 5 Go / No-Go Decision LOI If the parties agree that the proposition makes business sense, Canyon Ranch prefers to lay out terms and intentions right away. Model Refinement / Due Diligence Once terms for the partnership are in place, the parties work diligently to refine the model, test sensitivities, and collect any additional information that is necessary for the development.
Part 2: Development Process 6 7 8 Partnership Agreements Canyon Ranch and the partner enter into several agreements in alignment with LOI terms: 1) A Technical Services Agreement, in which Canyon Ranch agrees to provide design, marketing and operational startup services, 2) A Management Agreement, in which Canyon Ranch agrees to manage the property to an exceptional standard, and 3) A Brand & Name License Agreement, in which Canyon Ranch agrees to license its brand for the promotion and operation of the property. Design Canyon Ranch has architects on staff who work with the project architects to lay out the most efficient and effective spaces to deliver world class wellness resorts, spas, fitness clubs, restaurants and medical facilities. Construction Canyon Ranch observes construction activities at critical junctures to ensure adherence to design intent. 9 10 Operational Startup Canyon Ranch uses its financial, planning, hiring, training, communication and project management skills to ensure a successful startup and a successful business. Sales, Marketing, PR Canyon Ranch uses its strong internal marketing team, nationally prominent branding agency (SS+K), nationally prominent PR company (MMGY Global), tremendous web presence and deep customer database to ensure the success of the venture.
DEVELOPMENT CAPABILITIES Canyon Ranch is one of the few global health and wellness companies with the infrastructure to expand quickly. With a dedicated new business development team, 11 integrative medical doctors on staff, numerous PhD and Masters level professionals, we offer unparalleled industry expertise. Canyon Ranch also has a tremendous amount of intellectual property and content that is packaged and ready for infusion into new ventures. The Canyon Ranch Development team manages these resources to move quickly and deliver top-of-market results. GARY MILNER Chief Development Officer DYLAN MCNERNEY Director of Project & Business Planning LESLIE SHAMMAS Global Director Design & Development CHRIS CAPOBIANCO DOUG WILSON MARY DE RANITZ ROBERT WOLFSET Finance Director Development Corporate Director Special Projects Corporate Counsel Assistant Project Manager
2017 Initiatives Destination Wellness Resorts 100 160 Resort Keys Healthy Restaurants 55,000 SF Wellness Spa and Fitness Facility 100 + Residences Beach Club and Kids Club (where applicable) Wellness Retail Urban Fitness Club and Spa Exclusive, Marketing Leading Fitness Club Healthy Fast Casual Restaurant Luxurious Spa Wellness Retail Urban Wellness Hotel 80 120 Hotel Keys In-room Wellness Amenities Urban Fitness Club and Spa Healthy Fast Casual Restaurants Fresh, Healthy Cuisine Featuring Superfoods Unparalleled Ingredient Quality Elevated Experience Targeted Convenience For investment interest or to present new opportunities, please contact: Gary Milner Chief Development Officer gmilner@canyonranch.com +1 (520) 749-9655 x4387
For investment interest or to present new opportunities, please contact: Gary Milner Chief Development Officer gmilner@canyonranch.com +1 (520) 749-9655 x4387