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FITNESS, HEALTH, WELLNESS

features

Editor’s letter: Focus on property

While some savvy operators have cracked the formula for property development, the wider industry has no access to information about things like rent to income ratios. Better data would enable us to thrive as a sector

By Liz Terry, Leisure Media | Published in Health Club Management 2018 issue 6
Some operators are getting great results in retail locations / PHOTO: THE GYM GROUP
Some operators are getting great results in retail locations / PHOTO: THE GYM GROUP
Operators running some of the most successful fitness businesses have been quietly developing seriously impressive property teams

When it comes to driving financial success – whether for profit or social good – the industry has traditionally had a strong focus on sales, marketing and retention. However, although these are vital parts of the mix, operators running some of the most successful fitness businesses have been quietly developing seriously impressive property teams. It’s becoming clear this is giving them a significant commercial advantage.

The way real estate is handled in relation to the development of clubs and the management and refurbishment of assets is starting to define value in the market in ways not previously seen.

Yet very little is generally known about the impact of real estate on the sector – there are no widely available industry surveys which track rental costs or values or look at profitability or asset value by location or by location type.

We don’t have shared numbers about the best location types, or where the rent to income ratios are most favourable, nor is this being tracked over time to show changes.

Neither do we assess in any depth how refurbishment cycles impact on the bottom line or how co-location affects turnover and profitability. These are all things we need to know.

In this issue, we open a discussion about property in our Ask an Expert feature on page 30. We look at some of the ways leading operators are managing their portfolios and ask how the industry can continue to thrive, as competition for sites intensifies and rental values increase in prime locations.

A new report from Allegra Strategies, called Project Fitness UK 2018, gives insights into the direction the industry is going, showing a strong drift towards retail-related locations.

Allegra says the majority of new private sector facilities built since 2012 have been in shopping centres, mixed use schemes, on retail parks and on the high street and our experts agree the contraction of retail is proving beneficial to gym operators.

New clubs will open at the rate of well over 300 a year in the UK for the next five years and it seems clear that when growth in the UK starts to slow – if the terms of Brexit make it viable operators will look to Europe to keep up the momentum, and so we will need to start extending this knowledge into Europe too.

On page 42, we publish Deloitte and EuropeActive’s latest numbers on the market, but again, the focus of this research is on membership and the number of locations. We’d like all industry analysts to start collecting data about rental values and property yields as well, so the best investment decisions can be made.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
The Wellness Clinic at Harrods will offer high-end treatments and workouts
The Wellness Clinic at Harrods will offer high-end treatments and workouts
Louise Parker has built a lifestyle fitness and nutrition business and is the author of Lean for Life
Louise Parker has built a lifestyle fitness and nutrition business and is the author of Lean for Life
https://www.leisureopportunities.co.uk/images/396201_235205.jpg
'Very little is generally known about the impact of real estate on the sector... Better data would enable us to thrive' – editor Liz Terry calls for industry surveys to start tracking real estate stats
Liz Terry, MD, Leisure Media,property development, industry surveys,
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When retailer, the €11 billion-a-year Colruyt Group, decided to get into the health club market, the plan was to fully integrate its entire business using customer insight data. The results are remarkable
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The media questioned our rationale, but we have hope and a vision and people are responding very enthusiastically
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New research from UCLA Health looked at the impact of Kundalini yoga on memory and found a significant impact, finds Megan Whitby
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As more trans women, trans men and non-binary people join health clubs, it’s time to work out a system where everyone feels included, protected and safe in the locker room. Kath Hudson reports
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Steph Eaves looks at how health assessment devices are evolving to keep up with industry trends
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Following the gym upgrade, Sport Ireland Fitness membership has hit capacity and the team is putting a wait-list in place
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At the heart of the Sydney Swans new headquarters in Australia is an elite player-focused training facility by strength equipment specialist BLK BOX
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We all know we need to stand more. Now an exciting new partnership between Physical and Teca Fitness expands this thinking into UK gyms and beyond
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Life Fitness has reimagined cardio with the launch of its Symbio line which has been designed with advanced biomechanics and offers deep levels of customisation
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Sustainability in the fitness industry is coming on in leaps and bounds as more operators refurbish their gym equipment to save money and the planet
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Coaching workshops from Keith Smith and Adam Daniel have been designed to empower your team and transform your service
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Operators, prepare to revolutionise the way members connect with personal trainers in your club, with the ground-breaking Brawn platform.
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GymNation is pioneering the future of fitness with software specialist Perfect Gym providing a scalable tech platform to power and sustain its growth
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D2F had updated its brand styling to keep pace with business growth. MD, John Lofting and operations director, Matt Aynsley, explain the rationale
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Featured supplier news: CoverMe Fitness launches in Australian market
CoverMe Fitness, the studio management app for the fitness industry, has launched in Australia, with industry veteran Tony Zonato as managing director for the region.
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Featured supplier news: Places Leisure successfully launches myFitApp to enhance member experience
Places Leisure is a leading leisure centre operator with a mission to create active places and healthy people for communities to thrive.
Company profiles
Company profile: CET Ltd
The focus for two decades was low temperature saltwater hydrotherapy, in particular the CryoSpa Sport ...
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Company profile: BLK BOX
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Supplier Showcases
Supplier showcase - Jon Williams
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Supplier showcase - Safe Space: Delivering the vision
Catalogue Gallery
Click on a catalogue to view it online
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Speedflex (Europe) Ltd. press release: Speedflex brings HIIT Without the Hurt training to Plymouth Active
Speedflex is continuing its installation flurry with a fit-out at Plymouth Active Life Centre, a world-class swimming and diving facility and fitness centre.
Featured press releases
Zoom Media press release: Is AV the way to go for brands who want to create cinematic style content?
Audio-visual content is on the up, particularly in gyms as it plays a pivotal role in advertising by effectively connecting brands to aspirational and affluent customers.
Directory
Salt therapy products
Himalayan Source: Salt therapy products
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Property & Tenders
Cleveland Lakes, Wiltshire and Gloucestershire
Cotswold Lakes Trust
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Loughton, IG10
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Diary dates
11-13 Jun 2024
Raffles City Convention Centre, Singapore, Singapore
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12-13 Jun 2024
ExCeL London, London, United Kingdom
Diary dates
03-05 Sep 2024
IMPACT Exhibition Center, Bangkok, Thailand
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08-10 Sep 2024
Wyndham® Lake Buena Vista Disney Springs™ Resort, Lake Buena Vista, United States
Diary dates
19-19 Sep 2024
The Salil Hotel Riverside - Bangkok, Bangkok 10120, Thailand
Diary dates
20-22 Sep 2024
Locations worldwide,
Diary dates
01-04 Oct 2024
REVĪVŌ Wellness Resort Nusa Dua Bali, Kabupaten Badung, Indonesia
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09-13 Oct 2024
Soneva Fushi, Maldives
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10 Oct 2024
QEII Conference Centre, London,
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22-25 Oct 2024
Messe Stuttgart, Germany
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24-24 Oct 2024
QEII Conference Centre, London, United Kingdom
Diary dates
04-07 Nov 2024
In person, St Andrews, United Kingdom
Diary dates
04-06 Feb 2025
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
10-13 Apr 2025
Exhibition Centre , Cologne, Germany
Diary dates
07-07 Jun 2025
Worldwide, Various,
Diary dates

features

Editor’s letter: Focus on property

While some savvy operators have cracked the formula for property development, the wider industry has no access to information about things like rent to income ratios. Better data would enable us to thrive as a sector

By Liz Terry, Leisure Media | Published in Health Club Management 2018 issue 6
Some operators are getting great results in retail locations / PHOTO: THE GYM GROUP
Some operators are getting great results in retail locations / PHOTO: THE GYM GROUP
Operators running some of the most successful fitness businesses have been quietly developing seriously impressive property teams

When it comes to driving financial success – whether for profit or social good – the industry has traditionally had a strong focus on sales, marketing and retention. However, although these are vital parts of the mix, operators running some of the most successful fitness businesses have been quietly developing seriously impressive property teams. It’s becoming clear this is giving them a significant commercial advantage.

The way real estate is handled in relation to the development of clubs and the management and refurbishment of assets is starting to define value in the market in ways not previously seen.

Yet very little is generally known about the impact of real estate on the sector – there are no widely available industry surveys which track rental costs or values or look at profitability or asset value by location or by location type.

We don’t have shared numbers about the best location types, or where the rent to income ratios are most favourable, nor is this being tracked over time to show changes.

Neither do we assess in any depth how refurbishment cycles impact on the bottom line or how co-location affects turnover and profitability. These are all things we need to know.

In this issue, we open a discussion about property in our Ask an Expert feature on page 30. We look at some of the ways leading operators are managing their portfolios and ask how the industry can continue to thrive, as competition for sites intensifies and rental values increase in prime locations.

A new report from Allegra Strategies, called Project Fitness UK 2018, gives insights into the direction the industry is going, showing a strong drift towards retail-related locations.

Allegra says the majority of new private sector facilities built since 2012 have been in shopping centres, mixed use schemes, on retail parks and on the high street and our experts agree the contraction of retail is proving beneficial to gym operators.

New clubs will open at the rate of well over 300 a year in the UK for the next five years and it seems clear that when growth in the UK starts to slow – if the terms of Brexit make it viable operators will look to Europe to keep up the momentum, and so we will need to start extending this knowledge into Europe too.

On page 42, we publish Deloitte and EuropeActive’s latest numbers on the market, but again, the focus of this research is on membership and the number of locations. We’d like all industry analysts to start collecting data about rental values and property yields as well, so the best investment decisions can be made.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
The Wellness Clinic at Harrods will offer high-end treatments and workouts
The Wellness Clinic at Harrods will offer high-end treatments and workouts
Louise Parker has built a lifestyle fitness and nutrition business and is the author of Lean for Life
Louise Parker has built a lifestyle fitness and nutrition business and is the author of Lean for Life
https://www.leisureopportunities.co.uk/images/396201_235205.jpg
'Very little is generally known about the impact of real estate on the sector... Better data would enable us to thrive' – editor Liz Terry calls for industry surveys to start tracking real estate stats
Liz Terry, MD, Leisure Media,property development, industry surveys,
Latest News
David Beckham and F45 Training have finally settled the breach-of-contract lawsuit around Beckham’s ambassadorial agreement ...
Latest News
Apple has previewed the upcoming watchOS 11, which has more health and fitness insights and ...
Latest News
With just a few weeks until the General Election, CIMSPA – the organisation that represents people ...
Latest News
Co-founders of specialist gym and fitness wear company, WIT Fitness, have returned to the brand ...
Latest News
Basic-Fit has signed an agreement to sell five Holmes Place clubs it acquired as part ...
Latest News
The UK health and fitness is performing well, especially the private sector, with member numbers, ...
Latest News
David Lloyd Leisure has opened the doors of Madrid country club, La Finca, which it ...
Latest News
Leisure development specialist, Alliance Leisure, has appointed industry veteran, David Stalker, as advisor to the ...
Latest News
According to new research from Ernst & Young, the gap between female and male engagement ...
Latest News
Justin Musgrove, CEO of Fitness First UK, has made another tactical move, launching three Les ...
Latest News
High-end country club operator, Life Time Group Holdings, has closed a US$40 million sale and ...
Featured supplier news
Featured supplier news: CoverMe Fitness launches in Australian market
CoverMe Fitness, the studio management app for the fitness industry, has launched in Australia, with industry veteran Tony Zonato as managing director for the region.
Featured supplier news
Featured supplier news: Places Leisure successfully launches myFitApp to enhance member experience
Places Leisure is a leading leisure centre operator with a mission to create active places and healthy people for communities to thrive.
Company profiles
Company profile: CET Ltd
The focus for two decades was low temperature saltwater hydrotherapy, in particular the CryoSpa Sport ...
Company profiles
Company profile: BLK BOX
BLK BOX is recognised as a trusted authority in strength equipment and facility design. Through ...
Supplier Showcases
Supplier showcase - Jon Williams
Supplier Showcases
Supplier showcase - Safe Space: Delivering the vision
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
Speedflex (Europe) Ltd. press release: Speedflex brings HIIT Without the Hurt training to Plymouth Active
Speedflex is continuing its installation flurry with a fit-out at Plymouth Active Life Centre, a world-class swimming and diving facility and fitness centre.
Featured press releases
Zoom Media press release: Is AV the way to go for brands who want to create cinematic style content?
Audio-visual content is on the up, particularly in gyms as it plays a pivotal role in advertising by effectively connecting brands to aspirational and affluent customers.
Directory
Salt therapy products
Himalayan Source: Salt therapy products
Spa software
SpaBooker: Spa software
Cryotherapy
Art of Cryo: Cryotherapy
Lockers
Crown Sports Lockers: Lockers
Snowroom
TechnoAlpin SpA: Snowroom
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Property & Tenders
Cleveland Lakes, Wiltshire and Gloucestershire
Cotswold Lakes Trust
Property & Tenders
Loughton, IG10
Knight Frank
Property & Tenders
Diary dates
11-13 Jun 2024
Raffles City Convention Centre, Singapore, Singapore
Diary dates
12-13 Jun 2024
ExCeL London, London, United Kingdom
Diary dates
03-05 Sep 2024
IMPACT Exhibition Center, Bangkok, Thailand
Diary dates
08-10 Sep 2024
Wyndham® Lake Buena Vista Disney Springs™ Resort, Lake Buena Vista, United States
Diary dates
19-19 Sep 2024
The Salil Hotel Riverside - Bangkok, Bangkok 10120, Thailand
Diary dates
20-22 Sep 2024
Locations worldwide,
Diary dates
01-04 Oct 2024
REVĪVŌ Wellness Resort Nusa Dua Bali, Kabupaten Badung, Indonesia
Diary dates
09-13 Oct 2024
Soneva Fushi, Maldives
Diary dates
10 Oct 2024
QEII Conference Centre, London,
Diary dates
22-25 Oct 2024
Messe Stuttgart, Germany
Diary dates
24-24 Oct 2024
QEII Conference Centre, London, United Kingdom
Diary dates
04-07 Nov 2024
In person, St Andrews, United Kingdom
Diary dates
04-06 Feb 2025
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
10-13 Apr 2025
Exhibition Centre , Cologne, Germany
Diary dates
07-07 Jun 2025
Worldwide, Various,
Diary dates
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