In its fourth transaction of the year, Germany’s LifeFit Group has acquired three Elixia premium clubs in Berlin.

Each 5,000 square foot club features modern training areas, a diverse range of classes, a 25-metre pool and a comprehensive wellness area. Targeted investments and integration into the Fitness First network are intended to promote and expand the clubs‘ service quality and growth.

“The Elixia clubs are already operating at a high level in terms of their teams and facilities,” says Johannes Maßen, COO of the LifeFit Group and managing director of Fitness First. “Their professionalism is remarkable and provides an excellent foundation for the future.

“Through the integration into our strong network in Berlin and across Germany, members will benefit from significantly expanded training opportunities and cross-location offerings. At the same time, we will make targeted investments in the further development of the three clubs to enhance and secure the training and service experience in the long term.”

LifeFit Group now has a portfolio of 215 clubs with more than 700,000 members. The company has invested in its premium portfolio this year with acquisitions including Sports Up and Sports & Health in Munich. In March, the acquisition of  Fit/One Group, gave it a platform to build on in Austria.

Christophe Collinet, CCO of the LifeFit Group, primarily responsible for M&A activities, says there is a clear increase in demand in the premium segment: “Many people value the training itself and also appreciate a higher-quality environment, more service and additional features.

“Therefore, we are specifically looking for facilities with high quality and profitability, good amenities and attractive locations to further expand our premium offering, Fitness First Black.” 

At the HCM Summit in October, LifeFit Group CEO, Martin Seibold, talked about how the company is transitioning from being a multi-brand operator to running just two flagships brands – the premium Fitness First Black and the full-service, best price Fitness First Red. This will take the complexity out of the business and save money which can be reinvested.

“We have 197 Fitness First clubs in Germany, 77 per cent contribute 61 per cent of the EBITDA and the 23 per cent in the premium segment contribute 39 per cent,” he said.

Seibold talked about how learnings from chains LifeFit Group has acquired have been implemented across the rest of the estate. For example an innovative pricing structure at Smile X has been rolled out. This involves charging a basic membership fee and then extra for the individual zones.

As well as boosting yield, zoning means modalities can be switched out if they go out of fashion and be adjusted according to local demographics. Performance training, Hyrox, Booty Zones, physiotherapy and wellness are now trending.

Seibold said there is still plenty of white space to grow in Germany and the company will be looking to build on its foothold of 12 clubs in Austria.

Acquiring sites often leads to staff turnover, due to the implementation of Fitness First’s tightly-honed operations. “When we take over gyms we lose 70 per cent of general managers in six months and when you lose the GM you lose the teams,” he said. “We always expect a massive staff turnover – we warn them that it will be run differently and many people choose to move on. When we acquired the 45 Fit One clubs we had 30 general managers trained ready to take over.”

Seibold says that the company looks for the right people and invests in their individual progress, for example hundreds of colleagues have completed Julia Seibold’s personal development programme, Driving License for Life.