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The113 Year Old Brown Palace Hotel
 Adds a $2 million Spa
By Julie Dunn, The Denver Post
Knight Ridder/Tribune Business News

Dec. 27, 2005 - When Camy and John Cooney of Fort Collins reserved a room at the Brown Palace Hotel, they were pleased to learn that the 113-year-old landmark hotel now has a $2 million spa.

They get regular monthly massages, but were coming to Denver for their goddaughter's debutante ball. They decided to start the morning with a couples massage.

"Having (the spa) right here in the hotel is really convenient," Camy Cooney said Friday. "It's really relaxing and rejuvenating. A spa adds to the travel experience." The Brown Palace's new 5,200- square-foot facility, which opened last week, reflects a booming national travel trend: Spas have become a required amenity, instead of a luxury, for millions of hotel guests.

Americans spent $15 billion on spa services last year, up from $5.3 billion in 1999, according to Spa Finder Inc., a New York-based spa marketing company. The number of U.S. spa locations has grown at an annual average rate of 20 percent for the past eight years, accommodating 136 million visitors last year.

"To be competitive, in the resort and hospitality industry, the spa has become a necessity," said Susie Ellis, president of Spa Finder. "It used to be considered a loss leader, but now it's a profit center for hotels." The Brown Palace isn't the only hotel adding massage tables. The Omni Interlocken Resort in Broomfield recently spent $750,000 to upgrade its 6,000-square-foot spa, which reopened in September. And last fall the St. Regis Resort Aspen converted meeting space into its 15,000-square-foot Remède Spa as part of a $37 million hotel renovation.

"Spa services are a part of peoples' lives today," said Richard Maxfield, general manager of the Omni Interlocken. "We felt like we needed them to stay ahead of what our customers are looking for." The Omni expects to see a 50 percent increase in spa revenue in 2006 due to the renovation.

"There is tremendous demand for spa services, particularly on the weekends with our leisure market," Maxfield said. "From a return on investment standpoint, it was pretty easy to justify in terms of payback." Colorado ranks eighth nationally in terms of the number of spas, and new ones are in the pipeline. Well-known alternative medicine guru Deepak Chopra, for example, has announced plans to build a 17,000-square-foot spa in Westminster as part of Ananda, a $40 million residential and retail development.

Roughly 30 percent of U.S. travelers choose a hotel based on whether or not it contains a spa, according to Spa Finder.

"We're leading the market here because we have this spa," said Tim Power Smith, general manager of the St. Regis' Remède, which offers amenities such as complimentary champagne and an oxygen bar. "The other hotels don't have this luxury option." Nationally, the average spa treatment costs $75, with massages the most requested service, followed by facials, according to the International Spa Association.

Women make up the majority of spa goers, but the number of men who visit them is on the rise, increasing from 24 percent in 2002 to 30 percent in 2003.

"Sometimes there is a bit of hurdle in getting men into a spa, but once they go, they're usually hooked," said Ellis.

At the Brown Palace's spa, services range from $45 for a 25-minute sea mineral scrub to $130 for an 80-minute deep tissue massage. Its six treatment rooms include a couples VIP suite and a room for soaking in water from the artesian well located 750 feet below the hotel.

The Brown Palace also offers manicures, pedicures, waxing, and haircuts, and expects the spa to generate at least $1.8 million in revenue next year.

It is open to the public as well as hotel guests.

"Obviously we opened the spa to make money, but it also fills a niche we didn't think we were offering to our guests," said spa director Lydia Hanks.

"The phone is already ringing off the hook."

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To see more of The Denver Post, or to subscribe to the newspaper, go to http://www.denverpost.com.

Copyright (c) 2005, The Denver Post

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