Denver Beer Spa Plans to Tap Experiential Retail Trend

A pair of private developers are hopping aboard the craft beer boom by developing an unconventional spa in Denver’s RiNo district, where new retail has been brewing for years.

Developer Jessica French said she and her business partner, Damien Zouaoui, plan to open The Beer Spa, in which patrons are expected to be able to soak in a tub of unfermented beer and indulge in other beer-related experiences that can be done with social distancing in mind. The combination spa-taproom is expected to open in 3,100 square feet in 3004 N. Downing St. in downtown Denver's River North neighborhood in October, French told CoStar News.

The plan reflects what had been a growing trend of experiential retail, such as axe-throwing bars, trampoline parks and other activities that offer an experience you can't get online. However, it comes as the coronavirus pandemic requires social distancing and other preventive measures that have brought uncertainty to the future of businesses that depend on in-person visits.

But Abby Corbett, managing director and senior economist with CoStar Group, noted that Denver's consumer base has already started to return to restaurants — an encouraging sign for any retail developer.

"Consumer psychology in Denver, in particular, was not hard hit, and we’ve seen a bounce back in Open Table reservations there," Corbett told CoStar News. "COVID-19 won’t be the death of experiential retail; rather, it is a thorn in its spine. It introduces a layer of complexity and an obstacle to their business model, but it doesn’t mean that the concept is impossible to execute."

Nationwide, experiential retail has been praised as a viable response from brick-and-mortar stores to online retailer Amazon, which has completely redefined the retail landscape. For years, experiential retail developers and investors have been buying and leasing the large swaths of space that traditional retailers, such as Sears and J.C. Penney, have vacated. The beer spa concept fits squarely in the niche of unusual, experiential retailers that stand to thrive in this new retail landscape.

Patrons of The Beer Spa are expected to be able to soak in the beer hot tub or visit the sauna, as well as get a massage in a zero-gravity massage chair. The Beer Spa is planned to also offer a taproom with both beer and non-alcoholic beverages, such as kombucha. This is type of business for which constant cleaning between clients would be part of the routine even before pandemic precautions were recommended.

French did not disclose what if any changes or precautions The Beer Spa might take in the era of the coronavirus pandemic. But in general, it is standard practice for spas to be cleaned out and refilled with fresh beer, or other products, with each new customer. Spas of all kinds across the United States are largely taking additional precautions including more frequent cleanings, as recommended by the Centers for Disease Control or their local and state health authorities.

The beer spa concept has been bubbling up throughout the United States in recent years as the craft beer movement reached historic popularity. The beer spa concept's pitch is fairly straightforward, according to its proponents. When you bathe in beer, the hops and yeast open up pores, and the beer can help restore oily or dry skin by acting as a pH regulator, they say. Such spas are more common in Europe, and additional amenities can include hop saunas, in which the sauna’s steam is infused with revitalizing hops.

And, perhaps surprisingly, these intoxicating offerings don’t smell like beer, according to the spa owners.

Several beer spas have already opened in the United States. In Sisters, Oregon, there's Hop in the Spa, which opened in 2016 at 371 W. Cascade Ave. and claimed to be the first beer spa in America. In Chicago, there's Piva Beer Spa, a site that got its start in 2018 at 1052 N. Milwaukee Ave. in the city's Goose Island area.

Denver's The Beer Spa is planned for the RiNo district, an artsy part of the city that is home to artisans, photographers, architects and a growing pool of tech firms. In recent months, the area has been teeming with development, though some of those developments have naturally been affected by the pandemic.

GHC Housing Partners owns the planned Beer Spa building, French said. The company bought the 8,464-square-foot building for $1.6 million, or $198.66 per square foot, according to CoStar research and public records with Denver County. Construction on the property began earlier this month, according to additional public records.

GHC Housing Partners historically buys or builds multifamily properties but occasionally invests in other real estate sectors, according to the company’s website. It did not return a request for comment.

“GHC Housing Partners is making a significant investment in updating our building's infrastructure and facade to convert the space into a proper storefront prior to us taking possession, which we are extremely grateful for,” French said in a statement to CoStar News.