Health Club Management February 2015

INTERVIEW

I don’t think we’d grow bigger than that, or go outside of London. “However, we are looking at other

options such as microgyms. We’re assessing the model and if we feel it’s here to stay, it may well be that we complement those seven or eight large clubs with a number of microgyms across London. There’s a possibility those may happen sooner – conversations are ongoing as we speak – but it’s still very fl uid at the moment.” All of which sounds like Encore

is becoming an operator in its own right, I suggest. “That’s probably right in some ways, but not in others,” says Gandhi. “We’re not the guys who are in it every single day, making sure it all happens, but we are very proactive in all our investments. I’d describe it as a partnership approach: we

● A PREMIUM PORTFOLIO

Encore Capital acquired the Reebok Sports Club London from Barclays in 2006. Following an extensive refurbishment which was completed in 2014, the investment fi rm sought to grow its foothold in the premium fi tness sector with the acquisition of further clubs: The Third Space in October 2014, and 37 degrees Tower Hill in November 2014. There will be just one management

team overseeing all clubs within the group, with Ian Mahoney – chair of the Reebok Sports Club London

– continuing his involvement with Encore Capital and effectively acting as the fi tness industry insider within the growing portfolio, as well as being a minority shareholder in the business.

● Reebok Sports Club London With over 8,500 members and occupying 100,000sq ft over three floors, The Reebok Sports Club in Canary Wharf is Europe’s largest luxury health club. It offers a huge free weights area, more than 500 pieces of equipment, five studios offering over 200 classes a week, a 13-metre climbing wall, competition- sized boxing ring, 23-metre swimming pool and an indoor sports hall. Every member receives a

personalised programme with a focus on holistic wellbeing; alongside the

extensive fi tness facilities, the club also offers high-end spa services, nutrition and sports medicine clinics. www.reebokclub.co.uk

● The Third Space The Third Space comprises two London clubs – in Marylebone and Soho – and was one of the first brands to acknowledge that true health is an integrated affair, bringing together the best experts and facilities to cater for all requirements in exercise, health, medicine, nutrition and fun. The 40,000sq ft Soho club opened

in 2001, offering a medical centre alongside an extensive gym, while the 15,000sq ft Marylebone site opened in the Marylebone Hotel in 2011. The two clubs have a combined membership of over 5,000 members. www.thethirdspace.com

● 37 degrees Tower Bridge 37 degrees is a premium 28,000sq ft club located on the River Thames within the More London Estate, encompassing a gym, swimming pool, studios, spa, medical centre and associated retail operations. The club has over 3,500 members

and serves tenants including Ernst & Young, Norton Rose Fulbright, PWC and Terra Firma Capital Partners. tower.thirtysevendegrees.co.uk

36 Read Health Club Management online at healthclubmanagement.co.uk/digital

Ian Mahoney is the ‘industry insider’ in the growing portfolio

identify opportunities together, agree the strategy together and then work together to execute it. Some things only the management team can do: we don’t

have the experience to get involved. In fact, if we’re the ones having to tell management how to run any business we’ve invested in, we’ve probably got the wrong management team. “But there’s other stuff we can bring

to the party: negotiating with landlords and potential vendors of clubs, stepping back and looking at the bigger picture and the bigger opportunities, bringing the commercial perspective and in fact also the consumer perspective. “And of course we’re putting our own

money into this, and we’re viewing it as a long-term strategy. I’d say fi ve years is the absolute minimum timeframe, after which we’ll sit down and review again.”

Branding matters So for now, what will the new group of clubs be called? “Brand is a big issue at the moment and we’ll be reviewing it as part of the long-term, broader strategy over the next six months or so,” says Gandhi. “We have a vision that we’re trying

to create – a holistic, high-end wellness offering – so what brand refl ects that best? Is it Reebok, The Third Space, 37 degrees, or something completely different? Alternatively, do we let the clubs carry on under their existing brands, with one management team and an umbrella brand that sits quietly behind them all, but where each site is slightly different to fi t its specifi c location? There are lots of different ways we could go with this and we’ll take our time over it. “Ultimately we just need to ensure

we have one eye on our end game, remembering that it’s about delivering our very rounded approach to health and fi tness and communicating that through our brand and messaging. We’re not just building a group of clubs in London.” ●

February 2015 © Cybertrek 2015

Page 1 | Page 2 | Page 3 | Page 4 | Page 5 | Page 6 | Page 7 | Page 8 | Page 9 | Page 10 | Page 11 | Page 12 | Page 13 | Page 14 | Page 15 | Page 16 | Page 17 | Page 18 | Page 19 | Page 20 | Page 21 | Page 22 | Page 23 | Page 24 | Page 25 | Page 26 | Page 27 | Page 28 | Page 29 | Page 30 | Page 31 | Page 32 | Page 33 | Page 34 | Page 35 | Page 36 | Page 37 | Page 38 | Page 39 | Page 40 | Page 41 | Page 42 | Page 43 | Page 44 | Page 45 | Page 46 | Page 47 | Page 48 | Page 49 | Page 50 | Page 51 | Page 52 | Page 53 | Page 54 | Page 55 | Page 56 | Page 57 | Page 58 | Page 59 | Page 60 | Page 61 | Page 62 | Page 63 | Page 64 | Page 65 | Page 66 | Page 67 | Page 68 | Page 69 | Page 70 | Page 71 | Page 72 | Page 73 | Page 74 | Page 75 | Page 76 | Page 77 | Page 78 | Page 79 | Page 80 | Page 81 | Page 82 | Page 83 | Page 84 | Page 85 | Page 86 | Page 87 | Page 88 | Page 89 | Page 90 | Page 91 | Page 92