This story is part of Glossy’s week-long look at the state of luxury, exploring what consumers and brands are deeming worthy of investment in 2024. To see all the stories in the series, click here.
In New York, wealthy individuals have transformed their self-care days from basic at-home routines to lavish experiences at high-end wellness clubs, where they can indulge in cold plunges, saunas, IV drips, sound baths and hyperbaric chambers, among other luxury treatments.
The rise of luxury wellness clubs, which promise to enhance health through biohacking, is part of a bigger movement. According to management consulting firm McKinsey and Company, the consumer wellness market is currently valued at about $1.8 trillion, growing at 5-10% annually. Fueling the growth are doctor referrals and the growing consumer desire for personalized services.
Research points to Covid-19 as the catalyst of this new era of wellness. Beyond general health practices, including regular doctor visits and fitness routines, consumers began searching for spaces and communities encouraging lifestyle changes that decrease the risks of chronic health conditions and slow the aging process.
In the last five years, The Well, Sage + Sound, Remedy Place, Othership, Bathhouse and Continuum have all opened locations in Manhattan. Promising world-class fitness and wellness spaces and luxury treatments and services, their monthly fees range from $85-$10,000. As the competition grows and the idea of a luxury wellness spa evolves, it begs the question: Have we hit peak wellness spas?
Sarrah Hallock, co-founder and COO at Flatiron–based The Well, pushed back on the notion. “People have [historically] been overwhelmed by the idea of self-care. They’d think they didn’t have time or they were putting other people’s needs first, but we’re seeing a shift,” she said. “They’re now looking for someone to hold their hand [as they learn more] and provide a personal experience. … Enter what is considered luxury wellness.”
The Well first opened its doors in September 2019, but due to challenges brought on by the pandemic, it closed in March 2020, waiting to reopen until April 2021. “Coming out of Covid-19, [wellness was beginning to] move from niche practices to more mainstream [practices],” which helped build buzz around the company, Hallock said.
Along with consumers’ newfound interest in wellness clubs, an increased demand for bespoke experiences has led to added layers of luxury. “People want to be heard and seen, and we create personalized plans that meet clients’ needs and are bio-individual, which dovetails into this idea of luxury wellness,” Hallock said. “Luxury has always been personalized, bespoke and small. When you see that happening at the wellness level, it feels luxurious.”
The Well’s offerings include vibrational energy healing, Chinese medicine and acupuncture, health coaching, bodywork and massages, recovery and IV vitamin therapy, and skin and health facials. It also offers group fitness, guided meditation, a lounge area called the Library and an organic wellness cafe, Kitchen & Table. Monthly memberships range from $275 – $375.
The post-pandemic wellness boom ushered in millennials and Gen Z as shiny, new wellness consumers. The McKinsey and Company report shows that 56% of U.S.-based Gen Z consumers call fitness a “very high priority,” compared with 40% of all U.S. consumers. In addition, finding holistic preventive solutions to health issues typically associated with aging is more top of mind for young consumers than ever before. So it’s no surprise that Gen Zers and millennials are reprioritizing their budgets to accommodate wellness memberships.
At the same time, with young U.S. adults drinking less alcohol than older generations, many are seeking non-bar third spaces to connect with like-minded individuals and hang out with their friends.
“I’ve always been interested in wellness, but it’s heightened now because I’m grown and I have money. It’s something I can now do for myself,” said Danette Hinton, a 32-year-old NYC-based professional who works as the head of operations at an asset management firm. Hinton said she pays around $1,000 per quarter for her wellness services, ranging from massages to day passes at Flatiron’s Bathhouse. While she doesn’t have a membership to a wellness club yet, she said that a location offering bespoke services, opportunities to bring friends and a non-cramped environment could inspire her to convert.
Remedy Place and Continuum, newcomers to the space, are taking a unique approach to luxury wellness to attract younger demographics. Customized group experiences, exclusive sober socials, more selective membership intake processes and cutting-edge AI-powered technology are the name of the game for the two competing businesses.
Currently capped at 200 members per location, membership programs at Remedy Place start at $350 a month, with two more tiers priced at $595 and $2,250. “You’re paying for an experience and quality level. … You can dump ice in your ice bath and do it at home for free or you can do an ice bath at Remedy,” said Jonathan Leary, founder and CEO, who recently announced a collaboration with Kohler to expand and bring luxury ice baths into the home. “I can promise that every piece of technology we have in the club is, hands down, the best of the best globally. The quality of the technology matters, cleanliness matters, and expertise matters.”
Remedy Place’s soon-to-open Soho location will be priced at a slightly higher price point, but Leary stressed that the upgraded bespoke services and amenities are sure to blow away the spa’s core “young professional” consumer.
“Luxury isn’t high volume, so we’re not a high volume business. Every single experience is customizable for your own suite or for your party size. Contrast suites, sauna suites, lymphatic suites, IV suites, hyperbaric, cryo, red light, ice bath class — everything’s flexible,” Leary said, adding, “It’s like a nightclub: Some people want to be at a private table with friends, and some people want to be out in the crowd. We offer both experiences.”
Meanwhile, at Continuum, which opened in NYC’s Greenwich neighborhood in May, monthly memberships are priced as high as $10,000 per month, but for a good reason, said Tom Wingert, vp and CRO. “You can have it all here,” he said.
In the newly constructed building, Continuum offers its members a space to rest, restore and play. While there is no maximum capacity per day, Wingert said the hospitality team works to ensure there is never over-crowding and that members can book any service or amenity — whether massages, personal training sessions, sensory deprivation tanks or private events — whenever they want. By the end of the year, Wingert said the club will have roughly 250 members.
“If you’re already burning upward of $10,000 a month on all of these different siloed [health and wellness] services, programs and amenities, it’s usually very disarticulated,” Wingert told Glossy. “Because of the level of personalization we offer, we essentially want to become your pre-medical provider and work in concert with your medical team.”
While luxury does come in the form of pricier monthly memberships and top-of-the-line technologies, Othership co-founder Robbie Bent said it’s also subtle touches and communal wellness experiences that can convert first-timers into members.
“We make all our incense and we have a custom smell and soaps that we’ve made by hand, plus the shampoo, the conditioner, the towels, the slippers — every item in the space is luxury,” Bent said about the 3-month-old Flatiron location that offers over 28 custom cold plunge and sauna classes. He added, “The floor is made of river tile. The sound system in the sauna is the best in the world. Every ice bath is custom-made to a size that’s perfect for sitting down. There’s an 18-foot artistic fireplace in the middle of the stadium seating tea room. The design itself is as luxurious as it gets, but what’s important to us is that people are coming frequently.”
“We’re very different than a lot of the clubs that are private, super expensive and more like memberships. We’re trying to be a community space for communities themselves and not just members,” Bent said.
Despite the differences between them, it’s clear that the luxury wellness spa opportunity is still growing.
