Henrik Berghultwho comes from a family of hoteliers, spent his life growing up in hotels in the Nordic countries of Sweden, Norway, Finland and Denmark. Therefore, it could be said that becoming COO of one of the largest and fastest growing independent hotel collections in the region has always been part of his destiny.
He assumed the highest position in Nordic Hotels & Resorts in 2022, after years in operational management positions at Norlandic and Scandic, as well as working as head of purchasing for Rezidor. Nordic, a division of the privately owned Strawberry Group, has 52 hotels and resorts in its portfolio, 17 of which have spas. Some of its most notable wellness properties include Farris Bad near Oslo and Yasuragi near Stockholm. It is proud to include Selma, one of Sweden's oldest spa resorts, in its collection, while one of its newest is Sommerro, which comprises one of Norway's last remaining public baths, now renovated.
"Our portfolio has grown out of the spa and resort culture, and some of these properties have been with us since the company's inception in 1990," he says.
But what aboutwhat makes a spa successful And how do you see Nordic developing its wellness experiences?
How important is welfare within Nordic's portfolio?
Our operations are mainly divided into three categories: five-star luxury properties, resorts (usually spas or ski sites) and boutique hotels. Wellness is very important in the first two categories and spas are particularly crucial.
What value do spas add from a business point of view?
In our properties that have spas, 30% of the revenue comes from that side of the businessthat's a lot!
On the other hand, properties without spas (especially in the luxury segment) are at a disadvantage. At the Six Hotel in Stockholm, for example, we are in stiff competition with the Grand Hotel and we are struggling because it has a spa and we don't. We want to add a spa because guests staying in five-star properties demand spa facilities and they are key to driving leisure and weekend business. We want to add one because guests staying in five-star properties demand spa facilities and they are key to driving leisure and weekend business.
How do you measure the performance of your spas?
We track many KPIs on the use of square metres, treatment rooms, saunas, etc. All our spas are profitable, but the most successful are the larger operations, where welfare is the main focus.
At Sommerro, our newest hotel which opened in Oslo in 2022, the spa and baths are rather small and we are still trying to find the right level of service and types of treatments to increase profitability. But what I will say is that this has been a special project from A-Z. No expense was spared in its investment. and entering this art deco hotel is like stepping into the film The Great Gatsby and would be well placed in any major gateway city, from New York to London.
Meanwhile, Yasuragi, which is located on the outskirts of Stockholm, excels in all areas. Its Japanese-inspired bathing area covering 2,200 square metres and is the main attraction of the 191-bed hotel; in fact, the spa was the first and was so popular that the owners later added accommodation. Even taking into account the operating costs, which are high considering its myriad pools and hot experiences, is a hugely successful model. It offers multiple packages and it's not super exclusive: a spa weekend starts at around €500, but you won't leave the property without spending at least that much again because of the different experiences on offer and the retail add-ons. It's very unique and that's something we really strive to achieve.
How would you describe Nordic's customers?
There are different demands in different markets, whether in Finland, Norway, Sweden or Denmark. However, they all enjoy the outdoor life and want to go hiking and cycling in the forest and mountains... and then happily return to the spa in the evening for a treatment, a nice dinner and a glass of red wine. They expect the full wellness offer and it is a balancing act for general managers to achieve this. It is especially important that understand the nuances of a spa business, which treatments are most profitable and which product houses to work with.
How are their needs changing?
Since the pandemic, there is an increased demand for wellness experiences that are more than just treatment. That is why theaufguss sessions are working particularly well for us. and Lasse Eriksen [development manager at Farris Bad] has been instrumental in this.
Aufguss is a relatively new experience and unusual in the Nordic countries, but is something that attracts people interested in sport and can be enjoyed in groups and is a topic of conversation. when you post it on Instagram or tell your friends.
Since Eriksen introduced 64 m² event sauna at Farris Bad five years agohas had a major impact on both guest experience and revenue.
It is built with state-of-the-art lighting and sound systems for entertainment and can accommodate at least 50 people at a time. Some of our larger resorts have between 600 and 700 guests, but we can accommodate up to 50 guests at a time. we do not have enough treatment rooms to meet the demand, so a larger scale experience is ideal.
We hope to add more unique experiences like this in the future.
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