Spa Management Metrics

Return on investment in a spa depends on many factors, inlcuding:

What kind of spa (day spa, resort spa, etc.)
How well-managed the operation is
The amount of debt service

That said, a typical rule of thumb is that the more the spent on the build-out, the longer the amount of time before break-even is reached. So a small day spa may take a year to stabilize, whereas a large resort spa may take 3+ years.

A healthy return in the spa industry is 25-30%. However, many spa operators hover around 10-12% and consider themselves lucky.

The spa industry is not a market you enter for "the buck." It is a labor-intensive, front-line customer service business that takes both heart and business skills.

 

Suggested Articles

Discover the three winners of the For Hands And Feet group of American Spa's 12 Days of PCA celebration.

The Godfrey Hotel Chicago has added CBD gummies to its in-room mini bar menu. Here are the details.

Shoppers are looking for ease of purchase and ease of use when it comes to gift giving. Here's how an automated software can help.