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Because the U.S. financial system continues to enhance, the U.S. well being membership market additionally continues to expertise progress for many of the most important well being membership corporations regardless of elevated competitors and bifurcation inside the business, the 2018 Club Business Top 100 Clubs listing exhibits.
On this yr’s listing, leaders within the well being membership business reported regular progress and sometimes vital additions with new builds or acquisitions in 2017. LA Fitness, Life Time, 24 Hour Fitness, Equinox Holdings (with its manufacturers Equinox, SoulCycle, Blink Fitness and Pure Yoga) and Planet Fitness all had progress years. City Sports activities Worldwide reported its first annual income progress in six years, primarily by means of value-slicing and membership acquisition.
The franchisors on the listing continued to reveal the power of this mannequin for progress. Franchising success was led by Planet Fitness (14 % improve), Crunch Fitness (eight % improve), UFC Gyms (17.forty six % improve), Orangetheory Fitness (forty six % improve), Anytime Fitness (14.2 % improve), Club Pilates (seventy seven.6 % improve) and 9Round (forty six.four % improve).
Solely six of the 100 corporations on the listing reported a lower in 2017 income, one of which was 5 % whereas the others have been three % or much less. Two of these six corporations with decrease income have been hospital-affiliated (Ochsner Fitness Middle at a lower of 5 % and TriHealth Fitness and Health Pavilion at a 1 % lower). YogaWorks, the boutique yoga model that went public in August 2017, additionally reported a lower of 1 %.
Following are some of the highlights from the outcomes of this yr’s listing.
No. 1: LA Fitness
LA Fitness, Irvine, California, has claimed the highest spot on the Top 100 Clubs record since 2013. This yr is not any exception. Though the notoriously press-shy firm didn't self-report its income, dependable business sources shared that the corporate's income was $2.1 billion, a 5.7 % improve from 2016. The caveat is that the quantity is for the 12 months ending Sept. 30, 2017. The corporate ended 2017 with 705 places, a rise from 689 in 2016.
No. 2: Life Time
Life Time, Chanhassen, Minnesota, stays at No. 2 for the second yr with 2017 income of $1.fifty five billion, a 5 % improve from 2016.
In fall 2017, Life Time and two courses of its trainers reached a settlement for $940,000 associated to the trainers' allegations that they have been solely paid on fee as exempt Life Time staff and weren't paid for performing work similar to cleansing, finishing courses and conducting shopper assessments. The corporate informed Law360 on the time that it denied any wrongdoing and settled solely to keep away from additional litigation.
On a extra constructive observe in 2017, Life Time opened its largest membership within the nation, a $50 million, 320,000-sq.-foot membership (together with the outside sq. footage) in Charlotte, North Carolina. In June 2017, the corporate additionally shared that it will open in 2019 a “wholesome way of life village” in a former shopping center in Edina, Minnesota, in a partnership with Simon Property Group. The undertaking is a component of a bigger collaboration between Life Time and Simon to re-think about mall areas as “wholesome way of life villages,” based on a media launch concerning the collaboration.
The corporate has already made strikes in 2018 that ought to improve its income for this yr, together with opening its first membership within the Pacific Northwest, buying six therapeutic massage retreat and spa places, opening an athletic resort-fashion membership in Princeton, New Jersey and one in a suburb of Boston, as nicely opening its first shared workspace idea.
No. three: 24 Hour Fitness Club Business's Top 100 Health Clubs of 2018
24 Hour Fitness, San Ramon, California, stays at No. three with 2017 income of $1.forty four billion, a rise of 1.forty eight % from 2016. 24 Hour Fitness has submitted a Top 100 Clubs type for a number of years with out submitting the income portion of the shape. Nevertheless, this yr it self-reported its income. (In prior years, the income for twenty-four Hour was obtained utilizing business sources.) Club Business's Top 100 Health Clubs of 2018
The change in angle about reporting its financials might stem from its new CEO. Chris Roussos was employed as CEO in Might of final yr after the departure of Mark Smith in March 2017. Club Business's Top 100 Health Clubs of 2018
The corporate ended 2017 with 433 golf equipment, a rise from 425 golf equipment in 2016.
“We’ve obtained a reasonably critical and direct focus of rising the footprint of 24 Hour,” Frank Napolitano, president of 24 Hour Fitness, informed Club Business in early July. He famous that half of the main target can be to interact members extra each inside and out of doors the membership. Club Business's Top 100 Health Clubs of 2018
Earlier this yr, 24 Hour launched a conduct change program and analysis research with the aim of understanding the incentives and motivation that folks want to assist them be extra profitable in reaching their fitness objectives. This system, the 28-day StepUp Program, was developed by the College of Pennsylvania’s Conduct Change for Good Initiative. Findings from the research will profit all the fitness business, the corporate stated.
No. four: Equinox Holdings
Equinox Holdings, New York, once more lands at No. four with estimated 2017 income of $1.three billion, a 19 % improve from 2016 income. Take into account that this income consists of income from Equinox, Blink Fitness, SoulCycle and Pure Yoga. Additionally remember that like LA Fitness, Equinox Holdings didn't self-report this income; as an alternative, it was gained from different sources. And like LA Fitness, the sources have been solely capable of report income for the final 12 months ending Sept. 30, 2017.
In April 2017, Equinox, which plans to open its first lodge in 2019, added Niki Leondakis as CEO. Leonadakis has 30 years of hospitality expertise, together with time as Kimpton Lodge president and COO. Former CEO Harvey Spevak moved into the position of government chairman and managing associate of Equinox Holdings.
In July 2017, Equinox acquired a “vital minority funding” from personal fairness agency L Catterton. The quantity of the funding was undisclosed. That non-public fairness agency additionally has investments in Peloton, Pure Barre and CorePower Yoga.
Blink Fitness submitted its personal type, however as a result of Club Business has all the time reported Equinox Holdings as an entire, Blink Fitness stays included within the Equinox Holdings itemizing. Nevertheless, Blink’s type famous that it had sixty three golf equipment in 4 states (California, New Jersey, New York and Pennsylvania) on the finish of 2017, accounting for $ninety nine.25 million in 2017 income, a 33 % improve from 2016.
Blink Fitness tasks that its income will improve by 35 % in 2018 with the addition of 25 deliberate golf equipment this yr. Blink plans to enter six new U.S. markets this yrwith a objective of reaching 300 golf equipment by 2021, it has said. Half of that progress began in 2018 with a franchise improvement cope with Golden State Warrior ahead Draymond Inexperienced to open 20 Blink places in Michigan and Illinois.
No. 5: ClubCorp
ClubCorp, Dallas, has been quiet because it reverted to a personal firm in 2017 after its buy by Apollo International Administration. Nevertheless, it held onto its No. 5 spot this yr by reporting $1.19 billion in 2017 income, a 1.9 % improve from 2016.
The sale got here after representatives from ClubCorp shareholders FrontFour Capital Group issued a letter in 2016 to ClubCorp that criticized the corporate's acquisition technique after which-depreciating shareholder worth. The corporate had been rising by means of a collection of acquisitions in 2016 and 2017.
Two new unbiased administrators then joined the board in Might 2017: Simon M. Turner, former president of international improvement at Starwood Lodges & Resorts, and Emanuel Pearlman, government chairman of the board of administrators at Empire Resorts.
Round that very same time, Eric Affeldt, who had been ClubCorp CEO, introduced his retirement.
In April of this yr, the corporate’s board introduced it had employed David Pillsbury as its new CEO. Pillsbury had held a number of C-degree roles within the golf business, together with co-CEO at American Golf, common supervisor at Nike Golf, COO after which president on the PGA TOUR Golf Course Properties, and most just lately as president after which CEO of Laser Backbone Institute. Upon Pillsbury’s hiring, Mark Burnett, who had been ClubCorp’s president and COO, introduced he was leaving the corporate.
No. 6: Planet Fitness
Planet Fitness, Hampton, New Hampshire, climbed one spot on the record to No. 6 this yr, reporting $429.9 million in 2017 income, a 14 % improve from 2016. The income reported by Planet Fitness, as with all franchisors on the record, is for its company-owned places and franchisee charges however not the income earned by every of its particular person franchisees.
On the finish of 2017, the general public firm had 1,518 golf equipment in forty eight states and a number of other nations, in comparison with 1,313 golf equipment on the finish of 2016. The corporate reported an all-time annual report of 210 membership openings in 2017. (The distinction in its 210 membership openings and the 205 improve within the quantity of golf equipment from 2016 might be attributed to some membership closings.) These numbers imply the corporate opened a mean of about 4 golf equipment per week in 2017.
Planet Fitness additionally moved into its new headquarters in Hampton, New Hampshire, in 2017.
No. 7: City Sports activities Worldwide
Regardless of displaying a rise in annual income in 2017 for the primary time in six years, City Sports activities Worldwide, Jupiter, Florida, fell from No. 6 on final yr’s listing to No. 7 with 2017 income of $403 million, a 1.5 % improve from 2016. City Sports activities, which has been round since 1973, is a publicly traded firm that operates golf equipment beneath the manufacturers New York Sports activities Clubs, Boston Sports activities Clubs, Philadelphia Sports activities Clubs and Washington Sports activities Clubs, plus the Lucille Roberts Health Clubs, which it bought in July 2017 for an undisclosed quantity. The sixteen Lucille Roberts golf equipment will retain their model and stay as ladies-solely golf equipment, in accordance with the corporate.
The 2017 buy was the primary transfer by CEO Patrick Walsh and his workforce to develop City Sports activities via acquisitions. That technique continued in 2018 with the acquisition in March of TMPL, the David Barton New York-based mostly model, and the February buy of 12 small golf equipment that make up California-based mostly Complete Lady Health club + Spa, an acquisition that moved the corporate for the primary time into the West Coast.
With these purchases, the corporate’s income for 2018 will doubtless improve once more.
Walsh, who acquired the Entrepreneur Of The Yr 2018 Award within the Transformational class in New York earlier this yr, informed Club Business that the corporate is within the midst of a “historic” turnaround.
City Sports activities’ previous couple of years have been maybe its most turbulent with a lot of the management departing the corporate after Walsh, who had been an lively investor within the firm, joined the board in March 2015 and ultimately moved into the chief chairman position and later the CEO position in 2016.
In 2017, Walsh moved the corporate's headquarters to Jupiter, Florida.
No. eight: The Bay Club Co.
The Bay Club Co., San Francisco, stays at No. eight this yr on heels of information in late July 2018 that its house owners are promoting it to non-public fairness agency KKR for an undisclosed sum. Its 2017 income was $235.35 million, a 4 % improve from 2016. The corporate, which operates 24 lively way of life golf equipment in California, picked up one of these golf equipment in June 2017 when it acquired the Manhattan Nation Club (MCC), Manhattan Seashore, California, for $seventy three million.
“In partnering with KKR, we're excited to construct even additional on what we’ve completed to date and convey our distinctive providing to much more communities throughout the nation,” Matthew Stevens, president and CEO of The Bay Club Firm, stated in a media launch saying the sale.
No. 9: XSport Fitness (Capital Fitness)
Regardless of proudly owning 39 golf equipment in three states, XSport Fitness, Huge Rock, Illinois, is one other press-shy firm. It reported a 2 % income improve with 2017 income of $195 million, preserving it at No. 9 on the listing. Its fashions embrace bigger multipurpose golf equipment in addition to categorical fashions. The corporate famous on its type that it plans to construct two golf equipment in 2018.
No. 10: Crunch
Crunch, New York, rounds out the highest 10 for a second yr, reporting $173 million in 2017 income from its fifty eight company golf equipment in addition to franchisee charges from its 177 franchisees and 4 licensees as of the top of 2017. That’s an eight % income improve from 2016. A lot of that income improve can doubtless be attributed to the two company places the corporate added in 2017 in addition to the sixty two new franchised places. The corporate additionally expanded from 21 states to 24 in 2017. Six of the brand new places in 2017 have been 5 former World Fitness center places in Buffalo, New York, that the corporate bought for an undisclosed quantity in Might 2017.
In 2017, the corporate, which started franchising in 2010, welcomed its millionth member.
Crunch additionally was named to Entrepreneur’s 2017 Top International Franchises listing, rating No. 104.
No. eleven: EXOS
EXOS, Phoenix, stays at No. eleven this yr, reporting $161.12 million in 2017 income, a 7.eighty four % improve in comparison with 2016. The corporate, which was based in 1999 as Athletes Efficiency, is especially a administration firm with agreements for 461 places for corporations in sports activities, Fortune 100 corporations, well being care, the army and group organizations.
No. 12: UFC Fitness center
UFC Fitness center, Santa Ana, California, skilled progress of 17.forty six % in 2017 to develop to $148 million in income. A model extension of the Final Preventing Championship, UFC Health club expanded from one hundred twenty five franchised places, sixteen company golf equipment and 4 managed golf equipment on the finish of 2016 to 139 franchised places, 17 company golf equipment and 5 managed places by the top of 2017. Regardless of the expansion, the corporate stays at No. 12 on the Top 100 Clubs listing.
In 2017, UFC Fitness center ranked No. 290 on Entrepreneur’s 2017 Franchise 500 record, however it dropped to No. 397 on this yr’s Entrepreneur Franchise 500 listing.
No. thirteen: Orangetheory Fitness
Orangetheory Fitness, Boca Raton, Florida, reported one of the most important income will increase in 2017, growing income by forty five % to $136.forty four million for its 20 company-owned places and the franchising charges from its 844 franchised places. That allowed the corporate to leap from No. 17 on final yr’s record to No. thirteen this yr. Its progress is unlikely to sluggish, because it reported it plans so as to add virtually 270 places in 2018.
In Might 2017, the firm signed its one thousandth U.S. franchise improvement settlement.
At the moment, Dave Lengthy, co-founder and chief government officer of Orangetheory Fitness, stated in a media launch: “The speed at which Orangetheory Fitness has grown since launching in 2010 has far surpassed our wildest expectations. Signing our 1,000th franchise settlement for the U.S. is a large deal and speaks volumes about Orangetheory’s influence on individuals’s lives all around the globe.”
In January 2017, Orangetheory was ranked No. 19 on Entrepreneur’s 2017 Franchise 500 record.
In August 2017, Orangetheory was named to Inc.’s 2017 5000 listing of quickest-rising personal corporations, coming in at No. 926 with three-yr’s progress of 474 %.
No. 14: Chelsea Piers
As a result of of Orangetheory’s income improve, Chelsea Piers, Stamford, Connecticut, dropped to No. 14 this yr regardless of a three.5 % income improve to $127 million in 2017. For subsequent yr’s record, the corporate ought to see even larger income with its opening earlier this yr of a location in Brooklyn, New York.
No. 15: Anytime Fitness LLC
Anytime Fitness, Woodbury, Minnesota, reported 2017 income of $116.four million, a 14.2 % improve. The corporate had three,823 franchised places on the finish of 2017 together with 38 company-owned places. That compares to three,405 franchised places and 38 company-owned golf equipment on the finish of 2016 for the corporate that was based in 2002.
Midtown Athletic Clubs, Chicago, had an enormous 2017, opening its renovated membership on Elston Road in Chicago. The renovated and expanded location now features a boutique lodge. Its income grew 4 % to $107 million, however that wasn’t sufficient to maintain it within the prime 15; it dropped to No. 17 on this yr’s listing.
The record had a number of huge movers past these already talked about within the prime 15.
The income for Vasa Fitness, Orem, Utah, grew by 30 % to $ninety one million in 2017, shifting it to No. 19 on this yr’s listing in comparison with No. 21 final yr. It ended the yr with 32 golf equipment in comparison with 26 in 2016, some of these in new states.
Harman Fitness, Chatsworth, California, reported 2017 income of $forty eight million, a fifty nine % improve from 2016, shifting up from No. 39 final yr to No. 30 this yr. The corporate is a Crunch and UFC Fitness center franchisee that is also a grasp franchisor of CR7 Fitness in Spain. It has 33 owned golf equipment and three that it manages, in comparison with 26 owned golf equipment and two managed golf equipment in 2016.
Club Pilates, Costa Mesa, California, offered its info for the primary time this yr and landed at No. 31 with $forty seven.fifty five million in 2017 income, a rise of seventy seven.6 % from its 2016 income, based on the corporate. Based in 2007, the reformer-based mostly Pilates studio franchisor, which is a component of Xponential Fitness and is backed by TPG Progress, has massive plans for enlargement in 2018, stating on its type that it plans so as to add 500 golf equipment this yr to its 300 present franchised places.
Leaping from No. 38 to No. 32, Chuze Fitness, San Diego, reported a 37 % improve in its income, noting it ended 2017 with $forty five million from its 23 low-priced golf equipment. That’s a rise of two golf equipment from 2016.
One other massive mover on the listing was 9Round, the kickboxing franchisor situated in Simpsonville, South Carolina. The corporate lands at No. fifty four on the listing, up from No. ninety three final yr. 9Round reported a forty six.5 % income improve to $sixteen.sixteen million in 2017 income from the seven company-owned golf equipment and the franchisee charges at its 607 franchised places. That compares to 449 complete places in 2016.
Metropolis Fitness, Philadelphia, Pennsylvania, seems on the listing for the primary time with $10.sixty two million., a 35.1 % improve in income from its 5 places. That lands it at No. sixty nine on the record. It plans to construct one new membership this yr.
Coming in at No. eighty five, Exercise Anytime reported $5.forty nine million in 2017 income, a 26 % improve in income for the Alpharetta, Georgia-based mostly franchisor. The low-priced model has one company-owned location and 142 franchised places with plans so as to add 50 places this yr. As with all of the franchisors, its reported income is income from its company-owned membership and the franchisee charges for its franchised places however not for these franchised places’ income.
Beacon Health & Fitness, Granger, Indiana, added a second location in 2017, and that enlargement gave the medical wellness-based mostly model $four million in 2017 income, which was an 86 % improve from 2016. This was the primary yr the corporate utilized for the listing, and its income landed it at No. ninety four. The corporate is constructing a 3rd facility, slated to open subsequent yr.
Top 100 Caliber Corporations Not on the Listing
Yearly, a number of corporations who need to be on the record decline to offer their info, and we're unable to safe correct estimates from different sources, so they're left off the listing. The next corporations probably must be on the record however will not be because of this:
- The Alaska Clubs, Anchorage, Alaska
- American Household Fitness, Glen Allen, Virginia
- Baylor Tom Landry Health & Wellness Middle, Dallas
- Brick Our bodies, Timonium, Maryland
- California Household Fitness, Orangevale, California
- Cedardale Inc., Haverhill, Massachusetts
- Chicago Athletic Clubs, Chicago
- Curves Worldwide, Waco, Texas
- Exhale Spa, New York
- Fitness 19, Maple Valley, Washington
- Fitness USA, West Bloomfield, Michigan
- Franklin Athletic Club, Southfield, Michigan
- Genesis Health Clubs, Wichita, Kansas
- Gold's Fitness center Worldwide, Irving, Texas
- Gold's Fitness center LA, Los Angeles
- Healthplex Sports activities Club, Springfield, Pennsylvania
- In-Form Health Clubs, Stockton, California
- Iowa Sports activities Clubs, Pelham, New York
- Jersey Robust (previously WOW! Work Out World), Wall, New Jersey
- Las Vegas Athletic Clubs, Las Vegas
- Latitude Sports activities Clubs, Salsbury, Massachusetts
- Lowell Administration (Gold's Fitness center Virginia and Wisconsin), Aspen, Colorado
- New York Health and Racquet Club, New York
- O2Fitness, Raleigh, North Carolina
- PRO Sports activities Club, Bellevue, Washington
- Retro Fitness, Colts Neck, New Jersey
- Saco Sport & Fitness, Saco, Maine
- Spearman Clubs Inc., Laguna Niguel, California
- Titan Fitness Holdings (Fitness Connection), McLean, Virginia
- Wisconsin Athletic Clubs, West Allis, Wisconsin
- World Health club Worldwide, Los Angeles
- YouFit, St. Petersburg, Florida
Acknowledgement and Thank You
Club Business thanks Rick Caro, president of Administration Imaginative and prescient, for his assist with the Top 100 Clubs listing and the evaluation this yr.
Thanks additionally to Emily Burgoon, contributor, for her work contacting corporations and compiling the knowledge for this yr’s listing.
And thanks to all of the membership firm CEOs and CFOs who submitted their varieties this yr.