A Hotel & Resort Spa is a wellness destination within a hospitality property designed to enhance guest experience through relaxation, rejuvenation, and holistic health services. It combines luxury accommodation with wellness therapies, making it a strong revenue-generating department while improving the hotel’s brand value.
Benefits of Spa in Hotels & Resorts
- Enhances Guest Experience – luxury + wellness = higher satisfaction.
- Increases Room Bookings – especially for resorts & destination weddings.
- Boosts Revenue – spa, retail, packages, wellness retreats.
- Brand Differentiation – positions the hotel as a lifestyle & wellness brand.
- Corporate Tie-ups – business travelers love express therapies.
1. Revenue Share Model (Most common)
- Spa Owner runs spa operations.
- Hotel & Spa Owner share spa revenue (e.g., Spa Owner 60%, Hotel 40%).
- Expenses usually covered by Spa Owner.
✅ Hotel benefits without investing.
✅ Spa owner shares risk but keeps majority.
❌ Needs clear accounting.
2. Management Contract
- Spa Owner runs spa on behalf of the hotel.
- Spa Owner gets a management fee (e.g., 8–12% of spa revenue).
Hotel keeps most revenue but spa owner has low risk.
✅ Safe for spa owner.
❌ Income is limited, no big profit upside
3. Minimum Guarantee + Revenue Share (Balanced)
- Spa Owner gives hotel a minimum fixed income (say ₹2,00,000/month).
- After that, revenue is shared (e.g., 70% Spa Owner – 30% Hotel).
✅ Hotel gets security, Spa Owner gets flexibility.
❌ Spa owner must have strong cash flow.
4. Joint Venture / Ownership Share
- Hotel & Spa Owner become partners (like 60:40).
Both share investment, expenses, and profit.
✅ Long-term stability.
❌ Complex agreement needed.