Top-tier health clubs reinvested more than one out of every five revenue dollars, posted 6% revenue growth and 4% net membership growth in 2016.
Boston – November 15, 2017 - Today, the International Health, Racquet & Sportsclub Association (IHRSA) released its annual Industry Data Survey (IDS) results and the accompanying publication, IHRSA Profiles of Success. The report provides a detailed analysis of the annual performance of leading health and fitness clubs, including results in key metrics such as revenue, membership growth and retention, traffic, payroll, non-dues revenue, and EBITDA. Club reinvestment and profit center analysis as well as income statement and balance sheet data are also provided.
"IHRSA's annual Industry Data Survey results show how leading club operators stand out, posting strong performance in financial and membership indicators,” said Jay Ablondi, IHRSA's executive vice president of global products. “While the overall sample posted solid results, club operators among the top 25% in terms of club reinvestment continued to outperform their peers. According to the latest survey, these clubs allocated 20% of total revenue to club reinvestment and outperformed the overall sample in revenue growth, EBITDA, and net membership growth.”
A total of 113 club companies, representing 6,391 locations, participated in the IDS. Overall, clubs posted net membership growth of 2.9% from 2015 to 2016. EBITDA and revenue growth were recorded at 16.8% and 3.2%, respectively. As a whole, participating clubs indicated reinvesting 6.6% of total revenue. Top performers, who typically reinvested 20.4% of total revenue, posted revenue growth of 6.4%, net membership growth of 4.3%, and had an EBITDA of 23.5%.
Profiles of Success also provides key performance indicators by club type and size along with profit center analyses. Key findings include:
- Multipurpose facilities posted 2.8% revenue growth, while fitness-only clubs recorded 5.1% revenue growth.
- The smallest club segment (under 25,000 square feet) posted the greatest net membership growth at 6.3%.
- Among participating clubs, personal training is the number one profit center, accounting for a median of 8.4% of total revenue generated.
- At fitness-only clubs, small group training ranked second among leading profit centers, while racquet claimed second at multipurpose clubs.
“With Profiles of Success, club operators can compare their performance results across profit centers, membership growth and traffic as well as income and expense categories,” said Melissa Rodriguez, IHRSA’s senior research manager. “Along with The IHRSA Health Club Consumer Report, Profiles is an annual must-have publication for any club operator seeking to better understand health club performance, improve insights on fitness consumers, and, ultimately, grow their business.”
Profiles of Success is based upon membership and financial data for 2016 and 2015, provided voluntarily by 113 club companies, representing 6,391 facilities. The report provides key performance indicators for several club types: fitness-only, multipurpose, independent, and multi-chain facilities as well as breakouts by club size and monthly dues. A snapshot of health club consumer participation and demographics are also included. In addition, the publication contains a profit center section that analyzes revenue streams from personal and small group training, racquet sports, spas, pro shop/retail, food & beverage, children's/youth programs, and aquatics/pool.
The report is also available in three parts for those who don’t need the full publication:
- Part 1: Executive Summary and Industry Outlook
- Part 2: Membership Pricing, Payroll, and Facilities
- Part 3: Financial and Operating Performance
The entire Profiles of Success PDF can be purchased for $499.95 ($249.95 for IHRSA members). The three separate parts are available for $179.95 each ($89.95 each for IHRSA members).
The IHRSA Health Club Consumer Report is available for $199.95 ($99.95 for IHRSA members).
For more information or questions, contact IHRSA Research or call + 1-617-951-0055.
About IHRSA
The International Health, Racquet & Sportsclub Association (IHRSA) is the trade association representing health and fitness facilities, gyms, spas, racquet and sports clubs, and suppliers worldwide. Its mission is to grow, promote and protect the health and fitness industry. As one of the world's leading authorities on the commercial health club industry, IHRSA regularly conducts industry and consumer research, along with club operator studies.