Ask The Tastemakers: Designing a Spa for Relaxation and Profitability – With TLEE Spas + Wellness

Creating a spa that seamlessly blends relaxation, luxury, and profitability requires expert knowledge and strategic design choices. We had a chat with Tracy Lee and Michael Lahm from TLEE Spas + Wellness, a renowned spa design consulting firm located in California, to gain insight into what makes a spa truly exceptional.

From optimizing guest experiences to maximizing revenue through smart design, their expertise reveals the secrets behind world-class spa environments.

Tracy Lee and Michael Lahm from TLEE Spas + Wellness

Prioritizing Relaxation Through Thoughtful Design

According to Tracy Lee, designing a spa is more than just aesthetics – it’s about crafting an experience that fosters relaxation while ensuring operational efficiency.

“We focus on creating adaptive, enduring spaces that are site-sensitive, brand-centric, and reflective of local culture. Our innovative approach blends creativity and forward-thinking to deliver unique, elevated spa experiences that align with both the brand and location.”

The Spa at The Little Nell by TLEE Spa Wellness
The Spa at The Little Nell | Courtesy of TLEE Spas + Wellness

A key element in this approach is ensuring a seamless guest journey by integrating back-of-house efficiency with front-facing amenities.

“While the guest experience is paramount, we also prioritize thoughtful back-of-house and staff spaces to ensure seamless and efficient operations. A cohesive flow between amenities is essential, guiding guests smoothly from one experience to the next.”

A prime example of this philosophy in action is the Kilolani Spa at Grand Wailea, which TLEE Spas redesigned to embody the soul and spirit of Maui.

Kilolani Spa at Grand Wailea, A Waldorf Astoria Resort
Kilolani Spa at Grand Wailea, A Waldorf Astoria Resort | Courtesy of TLEE Spas + Wellness

“By incorporating both gender-specific and co-ed hydrothermal elements alongside thoughtful amenities and ample space, we’ve helped create a sanctuary of true relaxation for all user groups, from solo travelers and couples to wellness seekers and beyond.”

Boosting Spa Revenue Through Smart Design

Beyond relaxation, spa design plays a pivotal role in driving profitability. TLEE Spas emphasizes the shift towards communal wellness spaces and self-guided experiences to create steady revenue streams.

“The traditional spa model is evolving, creating new revenue opportunities through innovative design. Incorporating communal wellness spaces, such as bathhouses or hydrothermal circuits—accessible via day passes or memberships—has become a key strategy for steady revenue streams.”

This model addresses staffing challenges by offering high-value, low-labor solutions that maximize profitability. Spas are also embracing social wellness experiences, moving away from strictly private treatment models.

Modern spas are embracing social wellness experiences, moving away from strictly private treatment models
Modern spas are embracing social wellness experiences, moving away from strictly private treatment models | Courtesy of TLEE Spas + Wellness

“Commercial spas are moving away from the traditional private treatment model and embracing communal healing spaces that cater to diverse user groups. While still important to design multi-functional treatment rooms to maximize space utilization, communal healing spaces now accommodate social events, team-building activities, and multigenerational travel experiences.”

One of their current projects, The Tahoe Proper, embodies this expansive view of wellness.

“This holistic wellness ecosystem features diverse fitness offerings, indoor-outdoor hydrotherapy and contrast bathing experiences, a court complex, and a bio-harmonization tech recovery circuit in addition to a leading-edge spa offering including a private suite with an outdoor sauna, cold plunge, garden lounge, and treatment studio.”

By diversifying experiences, spas can attract a broader audience and establish a recurring revenue model through membership programs.

Enhancing Retail Sales with Intentional Design

Another key revenue driver for spas is their retail space. When designed well, it can elevate the guest experience while reinforcing the spa’s brand identity.

“Retail space is a key driver of high-margin revenue and an opportunity to elevate the guest experience while reinforcing brand identity. A well-curated retail assortment featuring best-in-class products enhances the spa’s offering in a thoughtful and seamless way.”

Beyond selling third-party products, spas can also develop private-label or co-branded items that seamlessly integrate into their brand identity.

Retail space is a key driver of high-margin revenue and an opportunity to elevate the guest experience while reinforcing brand identity
Retail space is a powerful driver of high-margin revenue and a strategic opportunity to enhance the guest experience while strengthening brand identity | Courtesy of TLEE Spas + Wellness

“Intentional retail design encourages guest engagement, allowing products to be an extension of the spa experience and increase sales.”

By prioritizing relaxation while strategically optimizing revenue streams, spa design can achieve both aesthetic excellence and financial success. Whether through communal wellness spaces, operational efficiencies, or well-designed retail areas, every element contributes to a spa’s overall impact. With insights from industry leaders like TLEE, businesses can craft spaces that not only provide exceptional experiences but also ensure long-term profitability.

All images by TLEE Spas + Wellness

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