XpresSpa, a leading health and wellness outlet in U.S. airports, that offers many services such as massages and skin care, as well as products such as microbead massage pillows is nearing the end of its growth equity crowdfunding round on OurCrowd. The company seeks to raise $4,480,000 – $5,600,000 for its business which provides a healthy, restorative destination for global business and leisure travelers.
Based in New York, XpresSpa operates in over 50 locations in 22 major airports on two continents, according to its website. To recap, as reported by Crowdfund Insider‘s Midori Yoshimura, OurCrowd shares four main reasons for its investment in the on-the-go spa for both men and women:
- Top market position with tremendous growth opportunities. OurCrowd notes, “XpresSpa created the airport spa business model and largely defines the category; the company serves over a million customers per year and has 4x the number of locations of its largest U.S. competitor.” In addition, XpresSpa has positioned itself for geographic expansion and greater sales per location. This year, the company plans to net open 15 locations, a 30 percent increase over last year, while its existing spa sales are poised to continue increasing, partly due to the launch of a new line of personal care products for the “prestige traveler.”
- Best in class retail economics with established infrastructure to executer on rollout. XpresSpa has appealing store margins and best-in-class cash on cash returns, thanks to its average unit volumes and variable labor costs. As OurCrowd notes, “The XpresSpa business model is established, working and replicable.”
- Large, growing international market. XpresSpa’s future unit and same-store sales growth is based on the renaissance in airport retail and increasing spa visits by consumers. Annually, the industry is growing by about 6 percent, and airport concessions are a $5 billion market.
- Ability to invest alongside sophisticated private equity fund. The majority owner of XpresSpa is Mistral Equity Partners, a $300 million fund specializing in consumer and retail transactions that has completely underwritten XpresSpa’s funding needs. Andrew Heyer, Mistral CEO, is an investor in OurCrowd’s general partnership, as well as an active participant in the OurCrowd community; OurCrowd and Mistral are already partners in two investments, Abe’s Market and Apploi.
With XpresSpas accessible in terminals, an hour delay — enough time for a quick mani/pedi — seems more and more appealing. More detailed financial information is available for registered OurCrowd investors here.
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