IHRSA EUROPE UPDATE the ihrsa global 25
Patricia Amend details the top performers in the global health and fitness industry in 2010
growing health club companies*. In 2010 the franchised sector as a whole showed continued growth, but some individual companies either contracted slightly in size or failed to grow. While Curves International topped the list as it has for a number of years, it lost units – perhaps an after-effect of global economic turmoil. Jazzercise maintained its solid, second-place position with 7,800 sites, but added no new units in 2010. Once again, Anytime Fitness and
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Snap Fitness were third and fourth respectively, with Anytime reporting 1,496 units – a 20 per cent increase over 2009 – and Snap claiming 1,122 locations, a 17 per cent increase. There was some shuffling with respect
to revenues in the non-franchised segment. Konami Sports and Life is now number one globally, logging revenues of US$1.05bn, with 24 Hour Fitness taking the second spot with just over US$1bn in revenues. Fitness First, which was second in 2009, was third in 2010 at US$984bn. Life Time Fitness took fourth place with US$913bn, replacing ClubCorp.
headcount When it comes to number of members, the top rankings remained unchanged from 2009. The IHRSA Global 25 leader was 24 Hour Fitness with 3.8 million members, followed by Gold’s Gym International and Bally Total Fitness, which shared second place with 3.5 million members each. However, Planet Fitness, with 2.3 million, has moved up to third place, replacing Curves, which now ranks fourth with 1.9 million members. As for Life Time Fitness (NYSE: LTM)
and Town Sports International Holdings, (NASDAQ: CLUB), the two public companies in the US industry, it appears that Life Time is enjoying a comeback,
HRSA’s Global 25 listings offer basic information about some of the world’s largest and/or fastest-
NEWS
while Town Sports continues to work at resolving some issues. In terms of revenue growth, Life Time ranked second behind Virgin Active, with US$913m – a 9 per cent increase over 2009. “We believe Life Time Fitness has
shown that it can live through good times and bad,” says Brent Knudsen, managing partner at Partnership Capital Growth in San Francisco, US. “The company has done a nice job of restructuring its model to assure profi tability without losing its high-end focus. Town Sports, however, has struggled and is seeing heightened competition in its service areas.”
future trends So what lies ahead for the fi tness sector in the near future? “We can all agree that 2010 was a
challenging year as businesses were still recovering and valuations weren’t appealing with respect to exits,” says
Knudsen. “However, with hold periods approaching fi ve years for private equity- backed fi tness properties and business performance recovering, we should see a fair amount of deal activity in 2011–12.” “I see a number of trends continuing
to drive the industry,” concludes Duane Stullich, co-founder of FocalPoint Partners, an investment banking fi rm in Los Angeles, US. “From the consumer’s point of view, I see more choices emerging as operators become more sophisticated about identifying and exploiting niches. “With respect to consolidation, I see
signifi cant investor interest. There’s also the ongoing entrepreneurial spirit, the passion for health and fi tness and the favourable demographic trends – which is why I love this resilient industry.”
Data for this article was compiled, in part, from The 2011 IHRSA Global Report. Purchase a copy at
www.ihrsa.org/store
* IHRSA’s Global 25 listings are designed to provide basic information about some of the world’s largest and/or fastest-growing club companies, but they are not defi nitive. Many of the fi rms that should appear on these charts do not because they were unwilling or unable to provide all of the information requested by CBI’s deadline. The fi gures reported were obtained from the companies themselves or from public, published resources, and in most cases involving major fi rms, represent the one-year period ending on 31 December 2010. None of the fi gures, it should be noted, have been independently corroborated.
22 Read Health Club Management online at
healthclubmanagement.co.uk/digital august 2011 © cybertrek 2011
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