Bathhouses Eye Multi-Site Expansion as Revenues Grow, Industry Survey Finds

Bathhouses and thermal wellness venues are planning to grow beyond single locations, according to a new survey from the GWI Initiative. Of 43 operators and industry participants surveyed, only 10 currently run two or more locations, but 65% expect to within three years. The sample was predominantly North American and mostly standalone facilities, with smaller groups of wellness clubs, hotel and resort spas, residential projects and hot springs.

The financial picture was encouraging. Half of the operators who disclosed revenue reported gross monthly revenue of at least $300,000, and 24 of 34 operating facilities, or 71%, had reached positive cash flow, 14 of them within their first year. Opening is costly and slow: 35% invested $5 million or more, 47% invested at least $2 million, and 56% of those who gave a timeline said it took two years or longer to open.

Day passes are the dominant access model, and 77% of respondents offer or plan guided thermal programming, while 65% operate or plan large-format or event saunas. Treatments are a core or important secondary revenue stream for 53%.

The authors stressed the findings are directional rather than benchmarks because the sample is small, and that most operators are early in their journey, with 63% either not yet open or operating for five years or less.

Reporting based on Spa Business coverage of the survey.