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Health Club Management

Health Club Management

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Health Club Management

Health Club Management

News

Third Space plans two new clubs for 2018 in five-year £50m investment

Research tells us that 61 per cent of office workers say having a gym close to their place of work is hugely appealing
– Colin Waggett, chief executive, Third Space

Boutique fitness brand Third Space is investing £50m (US$65.7m, €56.8m) in new clubs as part of a five-year expansion plan in London, starting with two openings next year.

Backed by British private equity firm Encore Capital, the company is scheduled to open a 27,000sq ft (2,508sq m) club at Minster Court in the City of London in the second quarter of 2018. The site will feature a pool, members' lounge, five group exercise studios, gym equipment and a cryotherapy chamber. 

The new leisure facilities will sit alongside redeveloped office space as part of major renovations at the 300,000sq ft (27,870sq m) Minster Court – with Third Space aiming to attract more office workers into its clubs.

“Research tells us that 61 per cent of office workers say having a gym close to their place of work is hugely appealing – a fact which is well understood by landlords who want their developments to stand out from the crowd, with a Third Space club as part of the mix,” said Colin Waggett, chief executive of Third Space and former head of Fitness First.

A second club will be launched later next year in Islington and, at 47,000sq ft (4,366sq m), is set to become one of the largest health clubs in the city. From 2019, Third Space plans to open a new club every year and is in discussions with a number of landlords of mixed-use developments.

The decision to grow its portfolio of London clubs, which currently stands at four, has been driven by increased participation in group exercise and personal training, with its sites now receiving more than 1.5 million visits per year.

Strength and conditioning, HIIT (high-intensity interval training) and mind and body programmes have witnessed significant growth in participation, according to the company.

As a result, sales have jumped 17 per cent to £23m (US$30.2m, €26.2m) in the nine months to September 2017, with revenue expected to hit around £33m (US$43.4m, €37.5m) this year.

The business, which boasts 16,000 members, invested £3.5m (US$4.6m, €4m) at its Tower Bridge club and £6m (US$7.9m, €6.8m) at Canary Wharf last year.

Tower Bridge was redesigned with copper detailing, oak paneling, soft lighting and timber floors. A hot yoga studio lined with juniper wood is one of seven workout zones in the club, which also has a pool and spa.

Third Space also has clubs in Soho and Marylebone.

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Boutique fitness brand Third Space is investing £50m (US$65.7m, €56.8m) in new clubs as part of a five-year expansion plan in London, starting with two openings next year.
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