New owner plans upgrades to downtown spa

Oct. 28, 2025

The Spa on Phillips has a new owner with plans to upgrade it.

Stefanie Engelstad is the new owner of the business at 224 N. Phillips Ave

She said she plans “a series of thoughtful upgrades” for the business, with the goal of transforming it into a high-end wellness destination for locals and out-of-town visitors.

Michelle Lounsbery had owned the spa since 2020.

“Our goal is to continue what people already love about The Spa on Phillips while elevating it into something truly extraordinary,” Engelstad said. “We’re creating an experience that combines high-end wellness, beauty and relaxation. I’m looking at collaborations with others in the industry that will enhance our clients’ experience and provide exceptional services that serve our clients’ needs. We want to offer services to those who want to spend time relaxing in luxury and also those who want to spend less time achieving their beauty and wellness goals.”

Upgrades will include:

• Refreshed, modern interiors “featuring soothing design elements and refined touches.”
• Expanded treatment options, including massages, facials and innovative wellness and body therapies.
• New relaxation amenities, including lounges with packages “ideal for both locals and visitors seeking a luxurious escape.”
• Memberships for clients who want to maintain wellness and beauty routines with a customized approach to maximize time.

“While these enhancements are introduced, The Spa on Phillips will continue to welcome guests for their favorite services — ensuring no interruption to the experience clients have come to know and love, Engelstad said. “The existing team will remain at the heart of this transformation, continuing to provide the warm hospitality that has made The Spa on Phillips a Sioux Falls favorite.”

Engelstad and her husband, Eric, also are franchisees for Firehouse Subs and Atomic Wings.

She said she hopes to start incorporating changes at The Spa on Phillips by the end of the year.

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