New Spas by JHR&C

Origin of word “spa” Spa - town in Belgium

What is spa? Modern definition by International Spa Association: Spa - places devoted to overall well- being through a variety of professional services that encourage the renewal of mind, body and spirit.

Spa Concepts Branded Luxury SpasLocal Spa Company Quality of service Always deliver top qualityAverage. May vary greatly. Care about reputation and standards Always top priorityLow importance Price of services for guests Very Expensive – affordable for high profile guests. Flexible price: medium to low. Suitable for majority of guests. Spa Therapists Mostly foreigners. Professional spa education and minimum 2 years of experience. Mostly locals. No relevant education. Skills based on personal experience. In-spa Training Basic training + scheduled routine trainings Basic training or no training at all. Max number of treatments per therapist per day 510 Cost of service Very high: 8-10%Very low: around 1% Massage beds and other equipment Top quality equipment: focus on guest comfort, durability and presentation. Very expensive. Cheapest equipment. Often locally made. Mostly offering very low comfort. Sales & Marketing Up to 5% of budget is allocated for S&M. Almost no direct sales. Direct sales through dedicated sales people. Minimal marketing.

Spa Concepts Branded Luxury SpasCommon Local Spas S Top quality of treatment is guaranteed. Great for reputation. Guaranteed monthly rent. No initial investment needed. W Very high initial investment needed. Expensive management agreement: Min. $ % of revenue. Issues with service quality. Lack of standards and poor facility maintenance. O Good level of cooperation. Strong marketing support. Relatively easy to change to another company in case of problems. T Revenue not guaranteed. Very difficult (and expensive) to change company in case of problems. Actual Spa revenue may be higher than rent received. Owners perspective - SWOT

Our Spa Concept Branded Luxury SpasLocal Spa Company Quality of service Always deliver top qualityAverage. May vary greatly. Care about reputation and standards Always top priorityLow importance Price of services for guests Very Expensive – affordable for high profile guests. Flexible price: medium to low. Suitable for majority of guests. Spa Therapists Mostly foreigners. Professional spa education and minimum 2 years of experience. Mostly locals. No relevant education. Skills based on personal experience. In-spa Training Basic training + scheduled routine trainings Basic training or no training at all. Max number of treatments per therapist per day 510 Cost of service Very high: 8-10%Very low: around 1% Massage beds and other equipment Top quality equipment: focus on guest comfort, durability and presentation. Very expensive. Cheapest equipment. Often locally made. Mostly offering very low comfort. Sales & Marketing Up to 5% of budget is allocated for S&M. Almost no direct sales. Direct sales through dedicated sales people. Minimal marketing. Always deliver top quality Top priority Flexible prices Foreigners + professionally trained Egyptians. Basic training + scheduled routine trainings 8 8 Low cost: within 2% Comfortable, reliable beds and equipment from professional suppliers for reasonable price. Direct sales via professional sales team + HQ collaterals + on-line marketing Our Concept

Spa Concepts Branded Luxury SpasCommon Local Spas S Top quality of treatment is guaranteed. Great for reputation. Guaranteed monthly rent. No initial investment needed. W Very high initial investment needed. Expensive management agreement: Min. $ % of revenue. Issues with service quality. Lack of standards and poor facility maintenance. O Good level of cooperation. Strong marketing support. Relatively easy to change to another company in case of problems. T Revenue not guaranteed. Very difficult (and expensive) to change company in case of problems. Actual Spa revenue may be higher than rent received. Owners perspective - SWOT 1.High service quality to ensure guest satisfaction 2.Complete control over financials: full amount of profit is received 3.Hotel is supported by service charge generated 4.Modest initial investment 5.Good facility maintenance 1.Certain difficulties in the beginning: with manning, training, standards, products… etc. 2.In general the revenue level will not be as stable as with rent scheme. Having full control over spa operations is great for marketing and in-house sales. Having multiple spas under our management allows to share resources and enables economy on scale. Ultimately we have an opportunity to develop strongest spa brand in Egypt. Revenue level always depends from hotel business, and hotel business depends from political stability… Our Concept

Integration with hotels Spa – department in a hotel

Aquamarine

Palace

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