Key Points
- Larger operators like David Lloyd are building and applying that playbook across markets. Smaller operators, particularly in the premium segment, are more likely to look for partners or buyers as competition increases.
- The European fitness market, which now counts 75.5 million members and does €39.1 billion ($44.5 billion) in revenue, is still in the process of finding its balance as the wellness world evolves according to consumer needs and preferences.
European fitness market is entering a period of change, particularly for the luxury segment. Across different markets, operators are building larger clubs with more services, members are spending longer stretches of time on-site and investors are paying closer attention to businesses that can expand beyond a single location.
The sale of Aspria, a chain of premium hotels and fitness clubs, to David Lloyd Clubs, announced earlier this year, reflects many of those shifts. Once completed, the transaction will bring David Lloyd’s network to 149 clubs across Europe and strengthen its position in the premium segment.
Aspria’s clubs, located in cities including Brussels, Hamburg, Milan and Rome, are designed as full-service environments with pools, racquet sports, outdoor areas and recovery spaces. The model is built around longer visits rather than efficient workouts.
“The average stay was about an hour and a half,” Arnold Holle, a managing partner at global investment bank Carlsquare, which advised on the deal, told Athletech News. “Some people spend entire days there.”
That pattern in Europe is becoming more common at the €200 ($234) to €300 ($350) per month price point, with clubs positioned less as places to exercise and more as spaces where fitness, leisure and social time overlap.
While many similar concepts already exist in the U.S., particularly at the luxury end, this model is still expanding across Europe.
“I think the trend is clearly toward these larger, more premium clubs where people spend more time,” Holle said. “It goes beyond the quick workout.”
As consumer expectations rise, operating these types of facilities has also become more complex. Developing a consistent approach across locations, managing staffing and maintaining quality requires scale, which is contributing to increased consolidation.
“There is a way to run these businesses profitably, but it is difficult to develop that if you only have one or two clubs,” Holle said.
He added that many independent operators are now facing pressure to partner or sell: If you have one or two locations, it is probably sensible to team up with somebody else.
Larger operators like David Lloyd are building and applying that playbook across markets. Smaller operators, particularly in the premium segment, are more likely to look for partners or buyers as competition increases.
At the same time, smaller, specialized concepts continue to expand alongside these larger clubs. Formats such as reformer Pilates studios can operate with lower up-front investment and more flexible real estate, allowing them to serve different use cases without directly competing on scale.
“The beauty of those formats is that they can go into smaller, more awkward spaces,” Holle said, noting their continued growth across cities.
The European fitness market, which now counts 75.5 million members and does €39.1 billion ($44.5 billion) in revenue, is still in the process of finding its balance as the wellness world evolves according to consumer needs and preferences.
Pricing at the very top end has not yet reached the same levels seen in some U.S. cities, and adoption of ultra-premium concepts varies by market. However, the market’s broader direction seems headed toward integrated experiences, longer member engagement and larger club networks.
About Arnold Holle
Arnold has been an Investment Banker since 1998 and merged his business with Carlsquare in q3 2018. He spent several years each with Goldman Sachs, Boston Consulting, UBS and the World Bank’s IFC. He holds an MBA from Wharton, an MA from Johns Hopkins and a Ph.D. from Frankfurt.
More about Arnold Holle
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Infomation Source: Athletech News
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