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Wellness – the most lucrative investment in hotels

A quality wellness investment can be achieved from as little as 300,000 kuna over an area of 150 square meters. If the wellness and spa operation is well managed, the hotel can earn up to 30 percent more.

Written by: Renato Đurđević
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While a decade ago investing in hotels meant building access roads, utility infrastructure, and possibly a small indoor pool to ensure guests would not return home unbathed in salty (or fresh) water during bad weather, today hotels have found a golden goose of investment in the form of fairy-tale amenities – wellness. The arrangement of the wellness center is no longer left to the final works in the hotel when funds are running low, as hotel companies have discovered that wellness can extend operations throughout the year and become more competitive in capturing an increasingly demanding tourist market. Today, almost every foreign guest seeks information about the equipment, type, and ranking of the wellness center, without questioning whether the hotel has one or not, so investors know that wellness is not a necessary evil, but an added value that will bring tourists back.

Foundations of successful business

The Opatija hotel Ambasador invested 17 million kuna in the construction of a large wellness and spa center, which spans 1,300 square meters, with facilities spread over two floors. In addition to a large children’s pool, whirlpool, fitness room, saunas, and baths, the center also offers cocoon rooms for relaxation with water beds. Other hotels are rapidly investing in wellness programs because the potentials are abundant, and if the wellness and spa operation is well managed, hotel revenues will increase by 25 to 30 percent, especially during the off-season, allowing for a quick return on investment. A quality wellness investment, experts say, can be achieved with at least 300,000 kuna over an area of about 150 square meters where basic wellness facilities will emerge: saunas, whirlpool, a couple of showers, and massage and relaxation rooms. The total investment cost for a wellness center ranges between 1,500 and 2,000 euros per square meter, depending on what is desired and for which guests it is intended, and the price can be significantly higher if it is a luxury variant.

– The facilities in wellness depend on the purpose of the hotel, and the size of the hotel is not crucial. Of course, larger hotels will offer more wellness facilities, but they also have more guests. For wellness to function successfully, it is essential that things are set up correctly from start to finish. The first and foremost is the development of the concept, which is the foundation for a successful wellness center. Likewise, the selection of equipment, quality, and design are very important; poor equipment can harm the reputation of the wellness center, especially if it concerns a higher categorization of the hotel. Guests must feel comfortable in the interior and experience the entire ambiance of wellness. For this segment, experts are selected and trained to work in the wellness center, products are chosen, prices are determined, procedures and business policies are introduced, and a marketing strategy is adopted – explains Roman Tonković, director of Thermae Spa, a company for designing and planning spa facilities.

Quick return on investment

Both banks and leasing companies have recognized the profitability of hotel wellness centers, financing investments in 80 percent of cases, especially since the investment will relatively quickly return. – The return on wellness investment depends on the operation of the entire hotel, whether it operates seasonally or year-round, how full it is…, but if everything is well organized, a return should be expected within three to five years. It is important to say that wellness must be a source of income for the hotel, both from the wellness service offerings and from the increase in guests who decide to come to a hotel that has wellness facilities. Global research has shown that more than 70 percent of guests choose a hotel with wellness – says Roman Tonković, director of Thermae Spa. Observers note that most hotels investing to improve the quality of their offerings still do so unprofessionally, without a plan and vision, and with much improvisation. The most criticism is directed at the poor competence of architects and the selection of poor equipment. Investors should be advised to leave everything to professionals and specialists who will assess where and when to save without compromising quality. The key to success, say wellness center equipment suppliers, lies in choosing a quality partner. – Of course, this collaboration has its price, but the most expensive thing is to discover shortcomings and mistakes after a year of ‘operation’ of the wellness center and then call a specialist to develop the concept and address the shortcomings. Investments from some hotel companies are half as cheap because they buy interior materials and equipment from China that is not intended for public but home use. For example, a whirlpool for six people with EU certification and the highest hygiene standards on the market costs around 20,000 euros, while you can get a ‘similar’ one for a couple of thousand euros; the only question is how long it will work and what the level of hygiene is in it. A similar situation exists in almost all segments of wellness – says Darko Janković, director of Future Design, a company that designs and equips wellness centers.

Crucial importance of personnel

Once the interior and equipment of wellness centers are completed, the question arises of who will work in them. Darko Janković, director of Future Design, recommends that investors seek personnel in the local community six months before the completion of the wellness center and not to build facilities for which they will not have a workforce. With the found personnel, training should begin lasting two to three months to profile a quality team of people across all segments of the wellness center’s operations. – Today, educators of all profiles operate who can guide the investor in the operation of the wellness center within a certain timeframe and inform them about the costs of additional investments for the procurement of consumables and cosmetics. Their work also has its price, but it always pays off in the end. It is necessary to continue periodically educating staff and introducing new trends and techniques as this enhances the hotel offering – explains Janković. A significant budget item in equipping hotels is quality furniture and equipment, as modern tourists seek adequate comfort for their money.
– When equipping family hotels and smaller facilities, it is advisable to invest in professional appliances, primarily washing and drying machines, as well as ironing rollers. This investment will return to the owner in a year or two, considering that external ironing services are expensive. Professional appliances also have models with tokens that can be offered to guests for use – emphasizes Vilijam Miletić from the company Kapra, which equips hotels with furniture and equipment. From furniture, based on execution and design, the highest quality should be selected, along with new lines of appliances. The furniture should complement the architecture of the facility.