Dear SpaFinder Insiders,

Often in the SpaFinder Insider we discuss "hot new trends" but this time I want to talk about something that might be better described as a "significant new trend." I'm referring to the Spa Residential Community.

In some ways, the Spa Residential Community is really the embodiment of a lifestyle for which our industry has been trying to win converts for years. It's a community where people share your enthusiasms; where you can enjoy walking and biking trails, take fitness classes, and work out in the gym; where the spa offers an extensive menu of spa and beauty services, and water and other therapies, and a relaxation area to lounge in; where spa cuisine meals and healthy snacks are readily available; and where you can find wellness-oriented education opportunities and possibly even avail yourself of medical options. It's a spa-lifestyle dream come true.

We at SpaFinder have been tracking the development of spa residential communities over the past few years. What were once just some sketchy concepts and a handful of properties have grown by leaps and bounds, and now there are more than 75 spa lifestyle communities—thoughtfully planned and wonderfully innovative—in various stages of development. Here's what I see happening.

SPAS ARE ADDING RESIDENTIAL COMPONENTS
Kudos to the spas who have been trailblazers in this area. Some are well-known, but many less visible spas have also pioneered residential components. Here are a few names that come to mind:

Canyon Ranch, which has set the trend for destination spas in many areas over the years, did it again when it announced the concept of Canyon Ranch Living in Florida. The idea of living in a place where the various Canyon Ranch programs are available on a daily basis resonated with many people, and the Florida development was an immediate success.

The Greenbrier in West Virginia, famous for many decades thanks to the sulfur springs on its premises, formed a residential partnership called The Greenbrier Sporting Club for those who wanted to live in a spa community. The Greenbrier has extended this concept to other locations, and its beautiful advertising campaign has helped popularize the idea of combining residences with the spa lifestyle, especially among luxury consumers.

Red Mountain Spa got in on the trend early by building stunning two-bedroom villas on its Utah property and offering them for sale. When owners are in residence, they can participate in all the healthful activities of Red Mountain spa; at other times, they may put their villa into the professionally managed rental pool.

The famous Golden Door name will also be connected with residential spas when The Residences at the Wyndham Resort & Golden Door Spa in Fort Lauderdale, Florida finishes converting hotel rooms into two bedroom condominium units and adding a 48,000 square foot Golden Door spa. Many have dreamed of living at the Golden Door, and soon it will be possible.

With new majority owner Steve Case, the highly regarded Arizona spa Miraval, Life in Balance announced plans to open the ultimate wellness community with many residential options in Kapalua in Hawaii. Though it now appears that the location will be changed, Miraval remains committed to this vision.

Various residential options are associated with many other spa properties, including Calistoga Ranch, The Carneros Inn, Coolfont, Kingsmill Resort & Spa, La Costa Resort & Spa, Marriott Desert Springs Resort & Spa, Montage Resort & Spa, Regency Resort & Spa, Stoweflake Mountain Resort & Spa, Sundara Inn & Spa, and Topnotch Resort & Spa, etc.

RESIDENTIAL PROPERTIES ARE ADDING SPAS
Judging from the number of spas being built, residential developers seem to believe they are a way to enhance the value of their properties.

Resorts, country clubs and golf communities report that adding a spa can make a big difference. Big Horn Golf Resort in Palm Desert, California was one of the first to capitalize on this idea. Adding a $7 million spa (for residents only) set Big Horn apart from the more than 100 golf communities in the Palm Springs area, and Big Horn reported a record-breaking $200 million in real estate sales in a single year. That got my attention! Saguaro Ranch, Silverleaf, Seven Canyons Sedona, Hammock Beach, Laterra Resort and Spa, and Teton Mountain Lodge are among those who are following suit.

St. Regis, Ritz Carlton, Four Seasons, Hyatt, Hilton and Marriott are among the major hotel chains that are adding residential options alongside their traditional room rentals. Las Vegas is showing us its own version of the spa living experience with its condo-spa developments.

Terms such as vacation club, destination club, private residence club, fractional, and condo hotel, are increasingly associated with aspects of spa lifestyle living.

Don't assume the trend is U.S. based only. In the Caribbean, almost every new development project has a residential component. And don't even get me started on Dubai.

CONSUMERS' THOUGHTS
Finally, I want to share four key points I learned from studying the results of our Spa Lifestyle Communities poll. More than 1,100 of our online and magazine readers completed the survey, and here's what came through loud and clear:

Though most people were not familiar with the concept of a spa lifestyle community, once it was introduced to them they "got it" and wanted it. Here are some actual comments:

"This is a most enticing idea."

"I would certainly be interested in knowing more about purchasing either a condo or small residence that was in an area with spa amenities and hiking trails, yoga and trees."

"I am unfamiliar with spa lifestyle communities, but they sound lovely."

"What a novel concept! I'm excited about learning the details."

People expect more than just a spa facility from a spa lifestyle community. Over and over again they told us they want programs, healthy cuisine, classes, and education, and that they value both privacy and opportunities for interaction with others through a social community.

While there is a very negative reaction to the term "retirement community," the prospect of buying a "single family home" and "condo/hotel residence" scored very high; and the highest score went to a "property associated with a spa."

A large percentage of people were interested in the concept of a spa lifestyle community as an investment, perhaps because in recent years real estate investment has performed so well.

I felt it was important to give you a lot of details about this trend, so forgive me if I've run on for a bit! You can also read more about this in the press release (with additional facts and figures) that SpaFinder, Inc. is releasing to the media later today. As always, I'm very interested in hearing your thoughts and reports about any trends you are seeing.

Till the next Insider . . .



Susie