Business leader John Goff’s Cultural District development is the most obvious sign of his impact on the city, along with his work to secure the Texas A&M campus in downtown Fort Worth.
But behind the scenes, a major expansion of his Canyon Ranch luxury resort and wellness center business also is taking shape.
Canyon Ranch, based in Fort Worth, is preparing for growth and expansion via a partnership with New York-based VICI Properties, the company behind Caesars Palace, the MGM Grand and Mandalay Bay, totaling $500 million. That amount could increase to as much as $2 billion over the next five to 10 years, Goff said.
Goff initially partnered with VICI to invest $200 million for the development of the brand’s Austin location which is set to open in 2025. VICI is also partnering with Canyon Ranch with another $300 million investment, half for the company’s expansion and half for the company’s existing resorts.
“We’re a good-sized company, but we’re not giant. We haven’t expanded in years,” said Goff. “Now we’ve really revamped the senior management team. We have a great CEO and brought in a lot of additional talent, so we’re kind of ready for primetime.”
Originally founded in 1979 in Tucson, Arizona, Canyon Ranch was acquired by Goff in 2017. It is considered one of the original and best-known companies in the wellness resort industry, according to Goff.
Goff sees a huge opportunity to seize on growth in the wellness sector with one of the most relevant brands in the industry.
According to a report from McKinsey & Co., spending on wellness products and services is estimated at more than $450 billion and growing at more than 5% annually. The study points to the recent COVID-19 pandemic as one reason consumers are focusing on wellness.
Goff agrees with that assessment.
“That’s what we’re seeing, and we have what I think is the most recognized brand in the wellness space,” he said. “Certainly, in the resort area.”
Canyon Ranch currently has two destination resorts, one in Tucson, Arizona, the other in Lenox, Massachusetts. There is also a smaller resort in Woodside, California, and a spa at the Venetian in Las Vegas. Under construction is another destination resort in Austin, on the shores of Lake Travis. The Austin location is scheduled to open in 2025.
The destination resorts are typically where guests will spend from several days to a week. Guests typically spend anywhere from several days up to a week at destination resorts like Canyon Ranch.
Opening in Fort Worth in the fall, as part of the Crescent Fort Worth development, will be the first of the Canyon Ranch Clubs. The clubs offer members a local, personal team of wellness experts, as a way to maintain upkeep from their time at the resort. Other offerings will include access to fitness and spa facilities, an ongoing social support system, coaching, and progress benchmarking. The 25,000-square-foot Fort Worth club is expected to employ between 60-70 employees. A club in Houston is scheduled to open in 2024.
“What we hear from our guests is that they return from a week at the resort, which is kind of this wellness bubble, but then they want to keep up that routine, the good habits and such they learned at the resort,” said Jeff Kuster, CEO of Canyon Ranch. “The idea is to follow the customer home.”
Kuster said the company could add at least three more destination resorts and maybe 15 wellness clubs like Fort Worth.
“We could easily plot where those clubs would be because we know where our customers live,” he said.
But even if there is not a nearby Canyon Ranch Club, guests can keep up with their wellness routine via a digital app.
“It’s all about staying engaged,” he said. “By meeting our guests where they are, Canyon Ranch can seamlessly support them no matter how or where they want to engage with us.”
Goff’s $275 million mixed-use development, known as Crescent Fort Worth, is expected to open in September. The project includes 168,000 square feet of office space, 175 upscale rental apartments and a 200-room luxury hotel sporting the Crescent brand.
“Most people don’t realize Canyon Ranch is based here and that company is growing fast,” said Goff.
Canyon Ranch, along with Crescent Real Estate, Goff Capital Partners and Crescent Energy will be based in the office building going up at Camp Bowie and Van Cliburn Way.
“It will be good to be in one place,” he said. “We’re kind of spread out right now.”
Bob Francis is business editor for the Fort Worth Report. Contact him at bob.francis@fortworthreport.org.
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