Therme Group, Georgetown Company Form JV to Develop Wellness Resorts

Wellness company Therme Group and real estate developer The Georgetown Company have launched a joint venture to develop well-being resorts around the United States, according to an announcement Tuesday.

The Europe-based Therme, which creates large, spa-like resorts that combine thermal bathing, wellness and culture, has designated Georgetown as its exclusive development partner for all U.S. projects under the banner Therme U.S., according to the announcement.

As part of the deal, New York-based Georgetown has acquired a 25 percent equity stake in Therme U.S., enabling Therme to reach its goal to deliver 10 projects — each covering approximately 500,000 square feet — in the country over the coming years, according to the announcement.

“Our vision combined with Georgetown’s proven expertise in development, execution and financial structuring ensures that Therme U.S. has both the capacity and backing to achieve scale rapidly,” John Alschuler, executive chairman of Therme U.S., said in a statement. “Cities thrive when they invest in places that bring people together. Today’s announcement marks a significant milestone in the future evolution of urban spaces with the creation of world-class destinations where people of all ages and backgrounds can gather, relax and reconnect.”

Therme and Georgetown’s venture, which “reflects a shared commitment to advancing sustainable urban infrastructure,” aims to bring “large-scale urban well-being destinations” to key U.S. cities, according to the announcement.

“Well-being is now established as a defining element of urban development,” Georgetown CEO Adam Flatto said in a statement. “Therme’s visionary approach to embedding well-being into the urban fabric is not only forward-thinking but a necessary component for the future development of cities. This partnership not only advances Therme U.S.’s vision but also informs how we integrate well-being into our broader portfolio of projects focused on shaping more vibrant and resilient urban spaces.”

Therme currently has several wellness resorts in Germany and an outpost in Bucharest, Romania, and also has projects in the pipeline in Dubai, Manchester, Frankfurt and Toronto, according to its website.

It currently doesn’t have any resorts in the U.S., but that’s going to change as it’s already planning two locations in the country with Georgetown, according to the announcement. The two U.S. projects collectively total $1.5 billion in development costs.

Georgetown has owned, developed and overseen more than 25 million square feet of real estate since it was founded in 1978 by Marshall Rose, and it currently controls assets with a value of more than $3 billion, according to its website. Past projects include the $280 million redevelopment of Sony Pictures Entertainment’s studio site in Culver City, Calif., and the Easton Town Center shopping center development in Columbus, Ohio.

Georgetown will also become a financial partner in Therme as part of the new venture and make “substantial investments” in Therme’s global projects, the announcement said.

And even though it hasn’t yet built a wellness resort in the country, Therme is no stranger to the States as it has worked on projects in New York City, including Manhattan’s High Line and Brooklyn Bridge Park, the announcement said.

Therme’s new U.S. wellness locations will feature thermal baths, saunas, mineral pools, greenery, water slides and dining, according to the announcement.

Isabelle Durso can be reached at idurso@commercialobserver.com.