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 Spas Local Spa Company

Quality of service Always deliver top quality Average. May vary greatly.

Care about reputation and

standardsAlways top priority Low 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 day5 10

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 Spas Common Local Spas

S Top quality of treatment is guaranteed. Great for reputation.

Guaranteed monthly rent. No initial investment needed.

WVery high initial investment needed. Expensive management agreement:

Min. $5000 + % 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.

TRevenue 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 Spas Local Spa Company

Quality of service Always deliver top quality Average. May vary greatly.

Care about reputation and

standardsAlways top priority Low 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 day5 10

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

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 Spas Common Local Spas

S Top quality of treatment is guaranteed. Great for reputation.

Guaranteed monthly rent. No initial investment needed.

WVery high initial investment needed. Expensive management agreement:

Min. $5000 + % 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.

TRevenue 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

Thank you for your attention