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Health Club Management

Health Club Management

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UNITING THE WORLD OF FITNESS
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Health Club Management

Health Club Management

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.
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,
HCM magazine
A new study from the Global Wellness Institute highlights the scope of the $121bn mental wellness market, as Katie Barnes and Megan Whitby report
HCM magazine
The science shows being fit mitigates against COVID-19. We’ve proven we can operate safely under the SAGE COVID-secure Framework. Time to join it up by securing essential service status
HCM magazine
HCM talks to policy makers, operators and decision-makers about the public sector and trust response to the pandemic
HCM Magazine
Sponsored
Venueserve Fitness enables clubs to offer white-label content streaming to optimise capacity and member engagement
HCM Magazine
Promotion
Wattbike AtomX leads the future of indoor cycling, says Richard Baker
HCM Magazine
HCM People
Our road map is to manage leisure facilities, developing them into community hubs and ensuring the most in need get the most support
HCM Magazine
HCM People
Having someone just feeling comfortable walking into the gym is important
HCM Magazine
Butt, bottom, booty, bum – whatever you call it, working the backside is a vital part of the balance, power and wellbeing equation and has been ignored for too long, as Tom Tawell reports
HCM Magazine
Opinion
Steve Ward celebrates the transformational energy being unleashed in the fitness industry by the pandemic
HCM Magazine
Sponsored
Deansgate Square, the newest residential star on Manchester’s impressive skyline, is a fitting home for some of the city’s most stylish health and fitness facilities, with specialist acoustic flooring by TVS Group
HCM Magazine
Latest News
Nick Whitcombe, the independent gym owner who refused to shut his gym during the October ...
Latest News
This year's UK government Spending Review, announced in Parliament by chancellor Rishi Sunak on 25 ...
Latest News
Up to 100k people will benefit from the free gym and physical activity sessions, thanks ...
Latest News
To the relief of the sector, the UK government confirmed yesterday (23 November) that gyms, ...
Latest News
Closing gyms and leisure facilities during any possible future lockdown would be "unthinkable", according to ...
Latest News
The University of Stirling has opened its new £20m sports and fitness centre. The building, ...
Latest News
Gyms are right near the bottom of the list in terms of places people have ...
Opinion
promotion
With January now close on the horizon your thoughts will be firmly focused on sales campaigns to attract new members through your doors in the new year rush.
Opinion: Sealing the Leaky Bucket – 7 Research-Based Tips for Retaining New Members in January 2021
Featured supplier news
Featured supplier: Cryotherapy specialists, L&R Kältetechnik, launch new artofcryo.com division
L&R Kältetechnik has launched a new division, named artofcryo.com, after 30 years’ experience with -110 °C electrical solutions.
Featured supplier news
Featured supplier: Primal Strength bolsters Scottish expansion with Matrix Fitness distribution win
Matrix Fitness has announced an exclusive partnership with Primal Strength to target an increased strategic focus on the Scottish market.
Video Gallery
Freemotion CoachBike™
FreeMotion Fitness
Give your members the immersive cycling experience that keeps your members engaged – today and tomorrow. Read more
More videos:
Company profiles
Company profile: Matrix Fitness
At Matrix Fitness, our goal is to make innovative commercial fitness equipment that stands out ...
Company profiles
Company profile: TRX Training UK
TRX provides world-class functional training by offering quality equipment, effective workouts and world-class education capable ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Locking solutions
Monster Padlocks: Locking solutions
Fitness equipment
TRX Training: Fitness equipment
Software
Volution.fit: Software
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Direct debit solutions
Harlands Group: Direct debit solutions
Exercise equipment
Pendex Fisio S.L.: Exercise equipment
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Design consultants
Zynk Design Consultants: Design consultants
Management software
fibodo Limited: Management software
Member feedback software
AskNicely: Member feedback software
Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
27-28 Nov 2020
Athena, Leicester, United Kingdom
Diary dates
03-03 Dec 2020
Virtual,
Diary dates
09 Dec 2020
Raffles City Convention Centre, Singapore, Singapore
Diary dates
02-04 Feb 2021
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
Diary dates
03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
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.
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
Nick Whitcombe, the independent gym owner who refused to shut his gym during the October ...
Latest News
This year's UK government Spending Review, announced in Parliament by chancellor Rishi Sunak on 25 ...
Latest News
Up to 100k people will benefit from the free gym and physical activity sessions, thanks ...
Latest News
To the relief of the sector, the UK government confirmed yesterday (23 November) that gyms, ...
Latest News
Closing gyms and leisure facilities during any possible future lockdown would be "unthinkable", according to ...
Latest News
The University of Stirling has opened its new £20m sports and fitness centre. The building, ...
Latest News
Gyms are right near the bottom of the list in terms of places people have ...
Latest News
A new, Europe-wide initiative will look to chart the level of risk of COVID-19 infection ...
Latest News
UK Parliament will debate COVID-19 restrictions on gyms and leisure centres on Monday 23 November, ...
Latest News
The UK government has launched a £1bn Public Sector Decarbonisation Scheme (PSDS), providing grant funding ...
Opinion
promotion
With January now close on the horizon your thoughts will be firmly focused on sales campaigns to attract new members through your doors in the new year rush.
Opinion: Sealing the Leaky Bucket – 7 Research-Based Tips for Retaining New Members in January 2021
Featured supplier news
Featured supplier: Cryotherapy specialists, L&R Kältetechnik, launch new artofcryo.com division
L&R Kältetechnik has launched a new division, named artofcryo.com, after 30 years’ experience with -110 °C electrical solutions.
Featured supplier news
Featured supplier: Primal Strength bolsters Scottish expansion with Matrix Fitness distribution win
Matrix Fitness has announced an exclusive partnership with Primal Strength to target an increased strategic focus on the Scottish market.
Video Gallery
Freemotion CoachBike™
FreeMotion Fitness
Give your members the immersive cycling experience that keeps your members engaged – today and tomorrow. Read more
More videos:
Company profiles
Company profile: Matrix Fitness
At Matrix Fitness, our goal is to make innovative commercial fitness equipment that stands out ...
Company profiles
Company profile: TRX Training UK
TRX provides world-class functional training by offering quality equipment, effective workouts and world-class education capable ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Locking solutions
Monster Padlocks: Locking solutions
Fitness equipment
TRX Training: Fitness equipment
Software
Volution.fit: Software
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Direct debit solutions
Harlands Group: Direct debit solutions
Exercise equipment
Pendex Fisio S.L.: Exercise equipment
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Design consultants
Zynk Design Consultants: Design consultants
Management software
fibodo Limited: Management software
Member feedback software
AskNicely: Member feedback software
Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
27-28 Nov 2020
Athena, Leicester, United Kingdom
Diary dates
03-03 Dec 2020
Virtual,
Diary dates
09 Dec 2020
Raffles City Convention Centre, Singapore, Singapore
Diary dates
02-04 Feb 2021
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
Diary dates
03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
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