DESERT HOT SPRINGS, CALIF.—Having achieved its initial goal of reinvigorating a historic property, the ownership group of Two Bunch Palms Spa Resort has retained Maxim Hotel Brokerage, Inc. to represent them in the sale of the asset. The iconic Two Bunch Palms Spa Resort located in Desert Hot Springs, Calif., is 15 minutes from the Palm Springs International Airport. Two Bunch Palms, the oldest hot mineral spa resort, is celebrating its 75-year anniversary by commissioning a 3.5-acre solar farm.
The resort recently underwent a multi-million dollar renovation to update and expand its rooms, restaurant, yoga, meeting facilities and IT infrastructure. The first phase of improvements was part of a major rebranding designed to highlight the 600 year old waters, award winning spa therapies, healthier gourmet cuisine and robust movement and enrichment programs with over 35 classes weekly. The repositioning has resulted in a 40 percent increase in occupancy and gross revenue within the first eight months following the renovation. Two Bunch Palms’ carbon-neutral status along with its other sustainable practices has resonated with the wellness-oriented leisure traveler and has garnished accolades and awards within the industry for its new Sustainable Wellness position.
The solar initiative is a significant marker in Two Bunch Palms’ efforts to move the industry forward towards a Sustainable Wellness model. The initiative not only makes economic sense through measureable costs savings but will also generate power in a manner that saves 375 million gallons of water and prevents 13.5 million pounds of carbon emissions from entering the atmosphere over its 21-year lifespan when compared to a coal burning power facility.
Often compared to established wellness resorts like Canyon Ranch, Miraval, and Red Mountain Resort, Two Bunch Palm’s hot mineral waters provide a significant barrier to entry for other spas in its competitive set in addition to its lush 277-acre site, historic significance, prominence within the wellness niche, and proximity to Southern California’s 22-million-person feeder market that are among the resort’s desirable attributes. According to Harry Pflueger, the broker handling the sale, “The resort’s RevPOR exceeds other resorts in the Coachella Valley market by more than $250 per day, highlighting the economic power of a wellness lifestyle brand.”
Now that the resort has completed its first phase of development it is anticipated to trade in the $17.5 to $19.0 million range, approximately 25 percent below a recent HVS appraisal. Following expansion of phase two the resort is projected to appraise in excess of $40 million.
Go to Two Bunch Palms Spa Resort and Maxim Hotel Brokerage.
