Bathhouses: The Smartest Wellness Investment You Haven’t Made Yet

Don Genders, founder & CEO of Design for Leisure, explains why it's time investors take a closer look at the new wave of social, sensory, and mentally restorative wellness clubs.

If you’ve been watching the wellness world, you’ve probably noticed a new kind of heat rising. Once seen as relics of another era, bathhouses are now pulsing with renewed energy—from Brooklyn to Austin to Los Angeles—drawing in the same experience-hungry audiences that have transformed fitness, dining, and travel.

At Design for Leisure, we’ve been building hydrothermal spaces for decades. But this new wave of modern bathhouses—what we call social wellness clubs—feels different. It’s not about luxury spa pampering or silent retreat; it’s about connection, ritual, and the joy of shared rejuvenation. And behind all that warmth and ritual lies one of the most compelling, under-recognized investment opportunities in wellness today.

Large, event style saunas with plenty of seating a captivating views create unforgettable communal bathing experiences for guests.

From Fragmented Trend to Emerging Movement

Today’s social bathing club scene is vibrant but fragmented. There’s no dominant player, no consistent business model—just a growing number of passionate founders reinventing an ancient ritual. That fragmentation can frustrate investors, but it also signals enormous opportunity.

As Fast Company recently noted, what began as a cultural curiosity is fast becoming a mainstream movement. The sector’s trajectory mirrors the early stages of boutique fitness: highly localized, personality-driven, and ripe for professionalization.

The Demand: Social, Sensory, and Sober-Curious

Unlike previous generations that equated relaxation with indulgence, Millennials and Gen Z are seeking experiences that feel good and do good. They crave spaces where they can disconnect from their phones, reconnect with friends, and still be home before midnight.

This isn’t nightclub culture—it’s community culture. The absence of alcohol and smartphones isn’t a drawback; it’s the point. Warmth, music, scent, and ritual are the social lubricants. Hot. Cold. Rest. Repeat. is more than a wellness protocol—it’s an ethos for a new kind of social life. (A vibe Fitt/Insider captured extremely well in a recent Instagram post and it's worth noting that sweat bathing has a long history of bringing communities together.)

For a generation that’s increasingly open about mental health yet struggling to find healthy, in-person ways to connect, these communal wellness experiences offer something deeper: belonging. The rise of social wellness clubs is as much about mental restoration as physical recovery and helping counter the disconnection and digital fatigue so many of us feel today.

This is affordable wellness and is deeply democratic by nature. There’s not even space for fashion to dictate, as it has in the fitness world. There’s only so much you can do with a swimsuit (and even that’s being questioned, since, in many European traditions, this is a naked activity). Some spas where bathing clothes are de rigueur insist guests wear only their own branded items, using smart fabrics that minimize water transference to sauna benches. Now that’s controlling the fashion space. It’s a bit like the thinking behind school uniforms: everyone is equal once they step inside.

The Business Case

Here’s what I think many investors are missing: the economics make sense. While operational costs will always depend on location, staffing, and design, a well-built, energy-efficient sauna remains surprisingly economical to run. A 60–70-person facility operating for 14 hours can consume as little as $250 in electricity, depending on insulation and heat recovery systems. And that’s just one element of the broader operation. When designed holistically—with efficient heating, smart water management, and durable materials—the entire social wellness club can operate with far lower overhead than most assume.

Rather than viewing heat rooms as cost centers, investors should see them as high-performing anchors within a larger, experience-led ecosystem—one that, when built right from the start, delivers strong margins, long-term reliability and exceptional guest satisfaction.

The appeal of these social wellness environments mirrors what we’ve seen in adjacent wellness movements like Hyrox, the fitness race turned global social phenomenon. Hyrox proved that people crave experiences that blend performance, community, and ritual. Social wellness clubs tap that same desire, only through heat, cold, and recovery instead of competition. Both models demonstrate that when wellness becomes participatory and communal, engagement—and profitability—soar.

And the ROI? It’s strong. At Othership Flatiron, 700 visitors a day is not uncommon, and other social wellness clubs are reporting similarly impressive numbers. Gross profit on communal bathing facilities can reach around 80%. That kind of performance should make investors take notice.

The challenge for funding start-ups in this category isn’t viability—it’s visibility. That’s why Othership’s recent $11.3 million raise is so noteworthy. It’s the exception that proves the rule: the first wave of creative capital entering the space, a sign that institutional investors should take note.

Meanwhile, in Canada, there’s already proof of concept. A booming Nordic-style bathing movement is thriving, with operators achieving impressive profitability in a market just one-tenth the size of the U.S. The demand is clear; the only thing missing stateside is scaled investment.

The Funding Gap

So, if the economics are sound and early models are working, what’s holding the sector back? Simply put: scale and perception.

Institutional investors tend to wait for precedent—and that includes multi-unit operators, familiar metrics, proven playbooks. Most social bathing clubs today are still independent ventures led by passionate founders rather than portfolio-backed teams. That authenticity has fueled creativity, but it’s also kept big capital on the sidelines.

Still, the indicators are unmistakable: attendance, retention, and engagement rival early boutique fitness. The market is ready. The capital just hasn’t caught up.

The Inflection Point

The next evolution will land squarely in the mid-market—elevated enough to attract discerning guests, yet accessible enough to sustain volume and resilience. Imagine 20 to 30 social wellness clubs across North America, each grounded in authentic ritual, operational efficiency, and thoughtful design. Scalable, but not soulless.

When that model arrives—and believe me, it’s coming—it will redefine communal wellness. The first operators to scale successfully will set the blueprint for a generation of investors, designers, and developers to follow.

The Call to Investors For all their caution, investors understand one thing well: timing. The social bathing club boom is in its early innings, providing a rare window where cultural momentum, strong unit economics, and social relevance align.

Attendance and revenue already mirror early boutique fitness trends. Margins are strong, operations lean, and the consumer mindset is shifting decisively toward social, sensory, and mentally restorative experiences.

This isn’t a passing wellness fad; it’s a cultural correction. People are craving shared spaces that heal both the body and the mind.

The only question left is who will recognize the moment and make their move before the sector picks up even more steam. Will it be you? (If you’re looking to build a social wellness club or communal bathing space, I also recommend reading my “Communal Bathing Design Tips” on the DFL blog.)