Colliers International Launches Dubai Spa Benchmark Report

• Benchmark based on data from 216 treatment rooms provided by Dubai spa owners and operators
• Positive outlook for Dubai Resort Spa market with 6% increase in treatment revenue recorded in H1 2015

Colliers International, a global leader in real estate advisory, today launched the inaugural Dubai Spa Benchmark which points to the strength of the Dubai Resort Spa market which has witnessed a 6% y-o-y increase in treatment revenue (H1 2014-H1 2015), while also increasing its share of in-house guests to 74% up from 67% in H1 2013.

The biannual benchmark, which is based on data from 216 treatment rooms provided by Dubai spa owners and operators, provides consolidated performance statistics for Urban Hotel Spas, Beach Resort Spas and Independent Spas. A total of 14 key metrics are included in the report which are divided into three categories: revenue indicators, utilisation indicators and hotel-related indicators.

Commenting on the initiative, Filippo Sona, Director, Head of Hotels at Colliers International said: "Given that spas often occupy prime real estate within a hotel or development, owners and operators are feeling increasing pressure to increase performance. As the only industry-wide KPI benchmark which is based on actual operating data from a variety of spas across Dubai, the report is a credible, sound tool for industry stakeholders to drive forecasting and investment decisions. This initiative was created for and is being driven by the industry and we look forward to the positive role that it will play in furthering Dubai as the destination of choice for the health and wellness industry."

While the report highlights the strength of the Dubai Resort Spa market, pressure has been felt on revenue for Dubai City Spas owing to the increase in walk-in guests –typically local residents - as opposed to in-house guests. A decrease of 6% in average treatment revenue was recorded from H1 2014 –H1 2015.

Commenting on the performance, Sona said: "Dubai City Hotel Spas have witnessed an increase in walk-in guests rather than in-house which has had a detrimental effect on their overall revenue. Local residents often receive a discount on treatments through seasonal promotions or loyalty schemes, and they tend to be more price conscious than in-house guests. The local market, however, does offer significant opportunities for spa owners and operators particularly when you consider the case for branded spas in residential developments. This is an area where we are seeing strong potential and growth."

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