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Spa Related Highlights from a Hospitality Forum: Through my Spa Eyes

Spa Related Highlights from a Hospitality Forum: Through my Spa Eyes
by Susie Ellis

A few things got my attention at yesterday’s 2008 Leadership in Hospitality & Leisure Executive Forum (an Argyle Executive Forum) which was held here in New York. Some of us “spa-types” were in attendance – Judy Singer, Patti Monteson, and Jeff Kohl – but most were either hotel executives from companies such as Ritz-Carlton, Starwood, Marriott, Loews, Jumeirah, Wyndham, and Disney or financial/investor folks. From my notes, here are a few spa and hotel related highlights. I will elaborate as I have time in future blogs.

• Theatrical hospitality is a new buzzword (I like that)
• Walt Disney is expanding their brand and getting more into hotels and spas (for families, no doubt)
• Hotels need to keep up with consumer expectations – this can often be costly. Currently the big “must have” is the flat screen TV. Next will be the curved shower curtain. (Yep, love those curved shower curtain rods where I don’t have to have my body come in contact with the curtain!)
• Highest growth potential for hotels/resorts/spas currently is in Russia, Turkey, China, Thailand, and Malaysia. (Turkey was the surprise for me on this list)
• A new growth area for hotels and spas which is not yet on people’s radar, is the northern part of Africa (Interesting)

• Blue Harmony “Renew you inner Rhythm” is the spa and fitness program that Wyndham is going to be rolling out. The blue is for water and the name kind of fits with their Gen X positioning. (Wonder if they can execute…)
• Aber and Kent is getting into the Exclusive Resorts arena…interesting idea to have this new product category with a recognized brand name. (Clever)
• Jumeirah wants to help people not feel guilty while enjoying their luxury. (at least they admit it…am sure they aren’t the only ones)
• High touch and good architecture is not so easy for Asia to duplicate quickly. (It’s the high touch part that’s tough with a language barrier)
• Residences are becoming more and more a part of the hotel/resort formula. In fact, I am now seeing brands say they are in the hotel/resort/residence business. (Pardon me while I revert to third grade antics: “I told you so” – hmmm that felt good)
• People are really starting to talk about Gen X. (Makes me think we are right on trend with our switch to the new SpaFinder Interactive Magazine in 6 different languages.)
• Even the people in emerging markets know “what is in.” (The Internet and TV make what’s “in” instantly known)
• The other shoe has dropped in Las Vegas. There were ten projects under construction and now it appears as if the Fountainbleu will be the only one to make it to the finish line at the end of this year. It will cost more than $4 billion, be the tallest hotel on the strip (63 stories), will not have a “theme,” and their 50,000-square-foot spa will be in the sky. (With all that investment, I hope they get the spa right…but time and time again, I see people miss the opportunity to do something extraordinary. Fingers crossed.)

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This New Spa is A Sure Bet to Me

During dinner with Ian Brewis, who runs all of the Chi spas for Shangri La, we began discussing spas in Vegas and Macau. He had just come from Las Vegas where the Hong Kong-based Shangri La brand is apparently looking at possibilities for a new hotel and spa.
We talked about how Asians – and especially the Chinese – really like to gamble and why he anticipates that a Shangri La in Las Vegas would be a home run. Just like many Americans who traveled to China in the past 20 years prefered to stay in American style hotels (think Hilton, Marriott, etc.), the Chinese, who are now beginning to travel outside of China, are looking for a familiar hotel brand. Ta da! Shangri La.

Then the very next day I read this article in the NY Times, “Las Vegas Caters to Asia’s High Rollers” which explains that “Casino operators have long recognized that a large number of Asians, especially Chinese and Chinese-Americans, are avid gamblers.”

Hmmm…put me down for some Shangri La stock.

Chinese People and Spa

Did some touring – with a car and English speaking guide (Michael) that was surprisingly reasonable and turned out to be a good investment. Not only were we able to have a quick experience of some of the famous Shanghai sites like People’s Square, French Quarter, a silk factory, and gardens, but our guide was also an excellent source of information regarding spa culture. Michael himself goes to the public bath once a week for a massage. I found this amazing in that the average wage earns someone about $300 per month. While that is about how much you would spend at the Chi Spa for just one of their rituals, the public baths and massage for Shanghai’s citizens would cost only about $10. So we asked Michael to take us to one of these “spas” to have a look. On the way he explains that the Chinese have a saying which goes something like this: “water in the body in the morning, body in the water at night”.

ABC Nightline and Baby Spas – Tonight!

images 763019 ABC Nightline and Baby Spas Tonight!
ABC’s Nightline is doing a segment on Baby Spas. It will air either tonight or Friday night.

I went to ABC Studios yesterday afternoon to be interviewed for the segment. I was asked about why we think this has become a trend, the range of services typically offered to babies and/or babies and mommies, how Spa Finder responded to the trend (we added a category called Mommy and Baby on the website), and how many spas of this type are in the U.S. More than likely, Nightline will only use a snippet of my answers, but I do hope that the information I gave them will help them turn out an interesting segment. I believe they filmed at the new Skin Spa Baby in Encino, California, and I know they also spoke with the owners of Maternal Fitness Spa Bebe in New York. If they got footage of babies, I’m sure it will be terrific!

I won’t be up at 11:30 p.m. tonight (New York time) to watch, but I’ll be setting my Tivo. Here’s hoping that the segment is positive. (And that my hair is not a total mess.)

California WellBeing Institute – New Kid on the Block

177673256 022883a93e m 740598 California WellBeing Institute New Kid on the Block News flash. The California WellBeing Institute – a brand new concept in medical wellness – is set to open November 29 in Westlake Village, California! USA Today called it “groundbreaking”. It includes a:

Diagnostic Medical Center
270-Room Luxury Hotel (Four Seasons)
28-Treatment-Room Spa

It cost over $300 million and is the vision of health enthusiast David Murdock, chairman of the Dole Food Company, who is 83 years old.

It isn’t that we haven’t had bits and pieces of this idea before….Canyon Ranch, Pritikin, Cooper Wellness, Wellmax, Bumrungrad International in Bangkok, even Holistica (which had a similar concept when it opened but may have gotten a bit lost amid all the other offerings at the Hilton Hawaiian Village) have all offered various combinations of medical testing and spa. The California WellBeing Institute’s concept has some unique aspects that I think ensure its success.

1. It is paired with Four Seasons luxury accommodations
2. It is located near a very high-population area (L.A. County, home to almost ten million people), many of whom are affluent, aging, and in search of health and youthful longevity
3. It appears as if medical testing results can be almost immediate

I do not think the Institute’s concept will replace any of the medical/wellness combinations we already have, but it will add another option and hopefully help to spread the word that a medical spa vacation can be a very healthy choice. Some people will prefer to have their medical tests done in a destination spa environment (Canyon Ranch, Pritikin) where there isn’t as much temptation, costs will drive some to less luxurious facilities (Pritikin, Cooper Wellness, Bumrungrad), and some will want to have a golf option along with their testing (Wellmax, Holistica).

But there is one further assurance that this concept will work. After spending $300 million on a personal passion, there is no doubt in my mind that Murdock will make it work – even if it means spending a few million more.

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