June 20, 2013 – LA Fitness has announced plans to renovate its Tucson East facility in Tucson, Arizona, with a full-scale update and an expansion of more than 7,000 square feet. In addition, the California-based health club chain will remodel and update nine other sites in and around Phoenix and Tucson.
Reconstruction of the Tucson East site will take place near the end of July. Once complete, the club will feature all new cardio equipment and other updates.
At other sites, remodeling efforts are already under way, and will continue on a rolling basis throughout June and July. While specific plans vary from location to location, they include the following: refinishing hardwood floors in group fitness rooms, racquetball courts, and basketball courts; replacing the flooring in cycling studios; installing new LCD televisions; refinishing saunas; new carpeting and lighting; repainting and updating graphics; and adding new cardio machines, strength equipment, free weights, and indoor studio cycles.
“We are committed to providing state-of-the-art facilities and enhancing the LA Fitness experience with more than $4 million slated for these improvements, to ensure our members enjoy achieving their fitness goals,” Senior Vice President/Chief Real Estate Officer Bill Horner said in a company statement. He added that club members will have access to other nearby clubs when their usual locations are closed for the remodeling.
Eric Willin, COO of EZFacility, a health club management software provider in Bethpage, New York, noted that a number of health and fitness chains are currently undertaking expansion efforts. “We’re seeing more businesses choosing to open new sites or to rebuild existing ones than has been the case in recent years,” Willin said. “It’s a positive sign about the state of the health club industry. Given the American Medical Association’s decision to designate obesity as a disease, as well as other factors, we’ll probably continue to see an increase for a while to come.” Other nationwide health club chains that recently have announced plans for reconstruction or expansion include Total Woman Gym and Spa, Chicago Athletic Clubs, and UFC Gym.
LA Fitness has more than 500 locations throughout the United States and Canada. Earlier this month, the company opened its first branch in Rhode Island and announced plans to open at least six new clubs in the Detroit area.
Gold’s Gym Acquires 17 Fitness First Facilities
June 25, 2013 – Last week, Texas-based Gold’s Gym International acquired all but one of the 18 fitness facilities owned by Fitness First in the Maryland, Virginia, and Washington, D.C. region. According to the news outlet Club Industry, the acquisition price was in the $30 to $40 million range, and the deal will be closed by the end of this week.
“We love the clubs because of the distribution in the D.C. area in relation to our current clubs,” Gold’s Gym CEO and president Jim Snow told Club Industry. “…It takes us to 50 clubs, both corporate and franchise, in that DC market, giving us a strong, clear competitive advantage, so this is a really nice acquisition from that perspective.”
Fitness First will continue to own and operate one club, in Bethesda, MD, because of the structure of the lease with that club’s landlord. The owner of Fitness First, Peter Harvey, told Club Industry that he was ready for a change. “I think it was a great opportunity for all sides,” he said. “It was great for me, personally, and I think it’s a great move for Gold’s.”
Hugh McEvoy, Director of Sales and Operations for EZFacility, a gym management software provider in Bethpage, NY, noted that the move seems beneficial for all involved parties, including Gold’s, Fitness First, and the members of both clubs. “Any change on this scale is going to involve a lot of transition,” he said, “but it sounds as if the customer’s concerns are a high priority in this deal, and the change is sure to be a positive one. It’s always significant,” he added, “when a major gym chain grows in such a way.”
The Fitness First clubs acquired by Gold’s will be rebranded under the Gold’s Gym name over the next six months. Gold’s will honor all current Fitness First memberships and will offer former Fitness First members access to additional Gold’s Gyms. Also, current Gold’s Gym members will be offered options granting them access to former Fitness First clubs.
Last year, Gold’s Gym made another big acquisition, taking on 11 San Antonio-area Spectrum Athletic Clubs. In total, the company has about 100 corporate-owned clubs and 675 franchised clubs.