Early Findings: Bathhouse and Thermal Wellness Sector Eyes Multi-Site Expansion
New benchmarking research from the GWI Hydrothermal and Consulting Initiatives reveals significant investment, strong reported revenues and ambitious expansion plans across a rapidly evolving sector.
The bathhouse and thermal wellness sector appears to be entering a significant new phase of development. Nearly two-thirds of participants in an ongoing global benchmarking survey expect to operate multiple locations within the next three years, while established operators are reporting substantial revenue potential.
The 2026 Bathhouse & Thermal Wellness Development Benchmark Survey has so far gathered responses from 43 operators and industry participants across the bathhouse, thermal wellness, hot springs, social wellness, hospitality and related sectors.
The research was developed and conducted by Cassandra Cavanah, vice-chair of the Global Wellness Institute’s Hydrothermal Initiative, and Lisa Starr, chair of the GWI Consulting Initiative.
“The early findings show a fast-growing sector taking shape through a wide range of facility sizes, investment levels and operating models,” says Cavanah. “For the first time, we’re beginning to connect those development decisions with the operational and financial realities of running these businesses.”
A young sector with ambitious expansion plans
Sixty-three percent of respondents are either not yet open or have been operating for five years or less. Eighteen respondents—42 percent of the sample—either opened within the past two years or are currently in development.
At present, only 10 of the 43 respondents operate two or more locations. Within the next three years, however, 65 percent expect to be operating multiple locations.
The findings suggest that a growing proportion of the sector is moving beyond one-off concepts toward replicable, multi-location business models.
Significant revenue potential—but maturity appears to matter
Half of the operating respondents that disclosed revenue figures reported average gross monthly revenue of US$300,000 or more.
Operating maturity appears to be an important factor. Among the 16 respondents that have been operating for more than five years, 14 reported gross monthly revenue of at least US$300,000. By comparison, only one of the nine respondents that opened within the previous two years reported reaching that level.
The sample is not large enough to establish causation, and factors including facility size, location, capacity and operating model also influence performance. Nevertheless, the findings suggest that thermal wellness businesses may require time to reach mature operating performance.
Cash flow provides another encouraging indicator. Of the 34 respondents with operating facilities, 24 (71 percent) reported reaching positive cash flow. Fourteen of those respondents said they achieved positive cash flow within their first year of operation.
Capital requirements are considerable
While the revenue potential can be substantial, the survey confirms that this is also a capital-intensive category.
Fifteen respondents – 35 percent of the total sample – reported an opening investment of US$5 million or more. Twenty respondents (47 percent) invested at least US$2 million.
Development can also take considerable time. Among respondents providing an applicable development timeframe, 56 percent said it took two years or longer to move from concept to opening.
When asked what prospective bathhouse owners most often underestimate, respondents frequently cited development and construction costs, staffing and training, permitting and regulatory requirements, engineering and mechanical complexity, ongoing operating costs and the timeline to opening.
Access remains the economic engine
Day passes and single visits remain the most important access model for the largest number of respondents, selected by 20 participants.
Looking ahead, 28 respondents (65 percent of the sample) identified general admission and day-pass traffic as an important future revenue driver.
Memberships, private events, treatments, programming and food and beverage are also helping operators diversify revenue. However, the results indicate that generating sufficient guest traffic remains fundamental to the economics of many bathhouse and thermal wellness businesses.
Guided thermal programming and Aufguss is gaining momentum
The guest experience is also evolving beyond self-guided heat and cold exposure.
Seventy-seven percent of respondents already offer guided thermal or sauna programming or plan to introduce it. Large-format and event saunas show a similar trajectory, with 65 percent of respondents either currently operating one or planning to add one.
The results suggest that guided rituals, Aufguss, group sauna sessions and other forms of facilitated thermal programming are becoming increasingly important to guest engagement, differentiation and future revenue strategies.
Operators are planning broader wellness journeys
Planned additions and expansions also point toward richer and more varied guest experiences.
The amenities most frequently identified for future development include:
- Outdoor areas
- Warm and vitality pools
- Traditional saunas
- Cold plunges
- Food and beverage or café concepts
- Large-format and event saunas
- Private bathing or ritual suites
- Treatment rooms
- Steam rooms
More than half of respondents (53 percent) also describe paid treatments as either a core part of their business model or an important secondary revenue stream.
Together, these findings suggest that the next generation of bathhouses will increasingly combine heat, cold and water experiences with outdoor environments, treatments, food and beverage, private rituals and guided programming.
Building a more international benchmark
The current findings should be viewed as directional rather than universal industry benchmarks. The survey sample remains relatively small and has a predominantly North American perspective.
“We’ve received strong participation from North American operators and would now particularly like to hear from more businesses in other regions,” says Starr. “Broader international input will help us understand how these models differ across markets and make the final benchmarks far more meaningful for the global industry.”
The existing respondent base includes 24 standalone bathhouse or thermal wellness facilities and seven wellness or social clubs, alongside hotel and resort spas, residential and mixed-use amenities, thermal and hot spring facilities, and other industry participants.
The survey remains open to bathhouse, thermal wellness, hot springs and social wellness operators worldwide. Participation is confidential, and individual financial, operational and development information will not be attributed to participating organizations without their separate permission.
Participate in the research
Operators and developers are invited to contribute to the ongoing 2026 Bathhouse & Thermal Wellness Development Benchmark Survey.
The survey takes approximately eight to 10 minutes to complete. Participants will receive early access to any reported findings and help create stronger benchmarks for a rapidly growing global sector.
Take the survey
About the research
The 2026 Bathhouse & Thermal Wellness Development Benchmark Survey was independently developed and conducted by Cassandra Cavanah and Lisa Starr through their roles with the Global Wellness Institute’s Hydrothermal and Consulting Initiatives.
The two volunteer-led Initiatives bring together international experts to advance knowledge and best practice across hydrothermal wellness development and wellness consulting. Their association with GWI provided an industry platform and network for survey outreach.
The research methodology, data collection, analysis and findings were developed and managed by Cavanah and Starr.
