PureGym has hit a new milestone in the U.K., opening its 400th gym this week in Plymouth Derriford, offering members 24/7 access and group fitness classes.

The leading gym operator — known for its budget-friendly, zero-contract membership — has opened 44 gyms in the U.K. this year and plans to open at least another 200 across the country in the near term. Earlier this year, PureGym acquired 15 sites from Carpetright, which are set to be converted and opened under its banner before the end of 2025.

“Since opening our first gym in Leeds in 2009 demand for high-quality, low-cost fitness has grown exponentially, with a gym membership moving from a ‘nice to have’ to a ‘must have’ for millions of people,” PureGym group chief operating officer Rebecca Passmore said. “We’ve embarked on ambitious expansion to meet this demand, investing in cities, towns and retail parks across the UK to provide greater access to affordable and flexible fitness facilities.”

PureGym is also set to expand in the U.S., having acquired 67 Blink Fitness sites in New York, New Jersey and Pennsylvania in a $121 million deal that will see the gyms rebranded under PureGym.

“It is worth noting that in paying $121 million, we believe this is a very good value for a portfolio of this nature, and we expect the deal to be very value-accretive for PureGym,” new PureGym CEO Clive Chesser said earlier this month. “And last, but by no means least, the strong foothold in New York, New Jersey and the scaled-up presence in the US as a whole clearly provides us with a platform for growth in the largest fitness market in the world.”

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The United States Bankruptcy Court for the District of Delaware has given Blink Fitness the green light to offload its corporate operations and New York and New Jersey locations to PureGym, one of the U.K.’s leading fitness operators, in a $121 million cash deal.

The court also approved the sale of Blink’s Chicago, Houston, and California gyms to an affiliate of JTRE Holdings LLC, although the agreement doesn’t include Blink’s franchised locations. Both deals are expected to close later this year.

“We are pleased to have reached another milestone in our sale process, and look forward to emerging an even stronger business, under new ownership that believes in the value of our mission,” Blink Fitness president and CEO Guy Harkless said. “We are excited to continue our work to position the business and various gyms for long-term success as we remain focused on providing members with an inclusive, community-focused gym experience. I’d like to reiterate my thanks to each member of Blink Nation, who go the extra mile every day, providing members with an elevated gym experience.” 

The Blink Fitness deal gives PureGym an edge at a time when demand for affordable gyms has intensified, especially among young fitness consumers looking for flexible hours and classes. Of particular note, high-value, low-price gym giant Planet Fitness reportedly submitted a last-minute bid for Blink Fitness after its initial offer was rejected due to antitrust concerns.

Since its 2009 launch, PureGym has grown to 600+ gyms, roughly 2 million members and already has a presence in the U.S. with three locations under the Pure Fitness brand. PureGym also operates corporate-owned locations in the U.K., Denmark, and Switzerland, as well as 20 sites under a franchise partner in Saudi Arabia and the UAE.

PureGym CEO Humphrey Cobbold noted that the fitness operator is looking forward to working with Blink Fitness to deliver a “fantastic fitness experience” for members.

“It is also the right moment to pay tribute to the PureGym team who have been involved in our acquisition of Blink Fitness,” he added. “In getting to this point our team has worked tirelessly over the last few months, with great professionalism and dedication, and I pay tribute to the role they have played in what is a transformational moment for PureGym in the USA.”

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Planet Fitness has made a last-minute bid to compete for Blink Fitness in a second attempt to seize the budget gym chain after its initial offer was rejected over antitrust concerns, according to CNBC.

Last week, U.K. gym operator PureGym won a bankruptcy auction for the Equinox-owned gym brand with a $121 million bid — a move that gives the U.K. gym operator a sizable portion of Blink’s locations in New York and New Jersey.

Planet Fitness, set to report its Q3 2024 earnings on Thursday, has proposed two offers to Blink Fitness, according to CNBC: a $142 million offer for Blink’s assets, provided Planet Fitness isn’t required to address antitrust concerns, and a $155 million offer that includes select regulatory filings.

A Delaware bankruptcy court is scheduled to consider Planet’s proposals on Wednesday.

Blink Fitness confirmed that it is continuing to evaluate bids submitted for its locations outside the Northeast, including its gyms in California, Illinois, Massachusetts, and Texas. The gym brand had filed for bankruptcy in August, although it noted that revenue had increased by nearly 40% over the last two years. Earlier this year, Blink Fitness had unveiled a multimillion-dollar investment to refresh 30 of its most frequented gyms.

Considered a top player in the U.K. gym scene, PureGym’s move to acquire Blink would give the company a meaningful presence and strong foothold in the New York and New Jersey markets, PureGym CEO Humphrey Cobbold said. The fitness operator already has a presence in the U.S. under the Pure Fitness brand, with three locations in the Washington, D.C., area.

“U.S. expansion has been an important part of our growth plan, which is why we actively participated in the Chapter 11 process and entered into an APA with Blink Fitness,” Cobbold explained. We have, over several months, spent a considerable amount of management time and resources getting to know the business, and the management team and have developed an excellent understanding of both its prospects and the opportunity it represents.”

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PureGym, a global gym operator hailing from the U.K., has been given the green light to acquire Blink’s corporate operations and a substantial portion of the Equinox-owned gym brand’s locations in New York and New Jersey in a $121 million cash deal.

A hearing to approve Blink’s sale is scheduled for November 6. The deal is expected to close later this year.

“We are pleased that PureGym was selected as a winning bidder in our sale process, and we are excited to be moving forward with new owners who believe in our business and will deliver on our mission to democratize fitness for all,” Blink Fitness president and CEO Guy Harkless said. “We are grateful for the dedication of our entire Blink Nation and their continued focus on delivering the best experience possible for our valued members. We appreciate the relationships with our partners and the tremendous loyalty of our members as we enter this new chapter.”

Blink Fitness is continuing to evaluate bids submitted for gym locations outside of the New York and New Jersey areas. The fitness operator has a presence in California, Illinois, Massachusetts, and Texas.

PureGym CEO Humphrey Cobbold noted that the Blink Fitness acquisition is transformational for the U.K.-headquartered gym giant and shared that the group is planning investment and upgrades to enhance the Blink Fitness member experience.

“It gives our group a meaningful presence in the country and a strong foothold in the attractive New York and New Jersey area,” Cobbold said. “U.S. expansion has been an important part of our growth plan, which is why we actively participated in the Chapter 11 process and entered into an APA with Blink Fitness. We have, over several months, spent a considerable amount of management time and resources getting to know the business, and the management team and have developed an excellent understanding of both its prospects and the opportunity it represents.”

PureGym has already made its mark in the U.S. under the Pure Fitness brand. The group teamed with RCS Real Estate Advisors to advance its presence beyond its three locations in the Washington, D.C., metropolitan area.

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Equinox-owned Blink Fitness has reached an agreement with PureGym subsidiary Pinnacle US Holdings to acquire the affordable gym brand’s corporate operations and a substantial portion of its locations, primarily in New York and New Jersey, for a base purchase price of $105 million in cash.

The deal is subject to higher offers and court approval, although PureGym has been granted ‘stalking horse’ status ahead of an Oct. 28 auction. 

Just last month, Blink Fitness announced it voluntarily filed for bankruptcy and was exploring a sale. The low-cost gym operator had also secured a $21 million commitment from existing lenders to support its business during the process. One noteworthy point in light of the bankruptcy filing was the gym operator’s revelation that revenue had increased by nearly 40% over the past two years. 

Blink Fitness president and CEO Guy Harkless noted that the agreement marks an important step in the gym brand’s sale process.

“For many years, Blink has provided our members with an inclusive, community-focused gym destination,” Harkless said. “As we have worked this year to reinvigorate our most popular locations and elevate our member experience, we are encouraged by PureGym’s interest in the Blink business model and strategy and their belief in Blink’s mission to democratize fitness for all.”

Harkless, who joined Blink Fitness at the end of 2023, added that Blink is confident in its foundation as an affordable fitness brand and will provide a “strong base” for new owners to build upon – a sentiment shared by PureGym CEO Humphrey Cobbold.

What’s Next for Blink Fitness

Plans are also in the works for PureGym to invest in New York and New Jersey-area Blink gyms with facility upgrades.

“We have long admired Blink for the premium and affordable fitness experience that the team has delivered and their commitment to helping members improve their life through fitness,” Cobbold said. “This agreement to be the stalking horse bidder in the court-supervised sale process lays the foundation for PureGym to successfully expand its footprint in the U.S., supporting our purpose-driven mission to inspire a healthier world at an accessible price.”

Blink Fitness has over 100 locations throughout the U.S. The low-cost operator’s gyms in Texas, Illinois, and California are not included in PureGym’s agreement, although Blink noted that it is actively exploring the sale of these locations. 

As for Blink gym members in New York and New Jersey, PureGym assures  there will be a “continuity of service.”

PureGym’s Broader Strategy

For its part, PureGym has been eyeing a push into the U.S. and Canada under the Pure Fitness name, which offers flexible operating hours and zero-contract memberships. The fitness brand had teamed with RCS Real Estate Advisors to grow its North American presence earlier this year. Following its 2008 launch, PureGym has grown to over 1.9 million members with nearly 600 clubs in the U.K., Denmark, Switzerland, U.S., Saudi Arabia and UAE.

Just as wallet-friendly gym operators such as Planet Fitness and Crunch Fitness continue to score among young fitness enthusiasts – particularly Gen Z and millennials — similar gym models across the pond are also thriving, with the U.K. fitness industry valued at $7.6 billion, according to one recent market report.

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Basic-Fit, one of Europe’s fastest-growing high-value, low-price (HVLP) gym chains, reported a 17% increase in revenue to €585 million ($633 million) and membership growth of 13% to 4.1 million in the first half of 2024, reflecting the energy of the European fitness market.

The Netherlands-based fitness chain also announced record net club growth of 135 to 1,537 clubs and the completed acquisition of 47 RSG Group Spain clubs, five of which have since been sold, leaving 42 McFit locations that will become part of Basic-Fit.

For its 2024 outlook, Basic-Fit expects to grow its club network to around 1,575 clubs and projects revenue between €1.20 billion and €1.25 billion, with average revenue per member per month increasing to at least €24.50. 

Rene Moos, Basic-Fit CEO, said the fitness chain is making inroads in converting the 42 McFit clubs acquired in Spain to the Basic-Fit brand and expects the rebrand to be completed by the start of September. 

Although the RSG Spain acquisition and a high number of club openings weighed on cash flow and profitability in the first half of the year, Moos says the remainder of 2024 will be fruitful.

“This trend will reverse in the second half of the year, during which we will open a limited number of clubs, and the clubs opened in the first half of the year will start contributing to the bottom line,” he said. “Despite the impact of the large number of club openings in the first half of the year, we were able to achieve an increase in the underlying EBITDA less rent of 26% to €139 million.”

Moving forward, Moos says Basic-Fit will only look to open new clubs “if we expect to achieve a return on invested capital (ROIC) of at least 30% at maturity.”

Breaking Down the European Gym Landscape

The European fitness market as a whole has seen an increase in revenue and memberships, which have surpassed pre-pandemic levels. There are projected to be 100 million European gym members by 2030, according to a recent joint report from EuropeActive and Deloitte. 

Among European health and fitness leaders, the report listed Basic-Fit in the top spot in terms of memberships (then 3.8 million) followed by RSG Group, owner of Gold’s Gym and McFit, (2.0 million) and PureGym (1.9 million). 

Basic-Fit also took the number one place in revenue (€1.05 billion), followed by David Lloyd (€854 million) and PureGym (€621 million). 

Planet Fitness will soon join the list of European HVLP operators, as the big box fitness franchise plans to open 300 locations in Spain, with its first gym expected to open in Q3 in Sabadell. Planet is exploring other European markets as well.

It’s not just gym operators that are tapping into the fitness enthusiasm — boutique fitness is also starting to surge in Europe. 

Boutique Brands Start To Grow

Club Pilates, the world’s largest Pilates brand with over 1,000 locations, is set to grow in Germany, with four studios expected to open this summer, as well as in the Netherlands and Austria. 

BodyBase, a Pilates reformer brand based in the Netherlands, is expanding its studio presence with a new franchise model.

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Gymdesk, a management software provider for gyms and fitness studios, will have deeper pockets from here on out. The fit tech company has secured a $32.5 million growth investment from software-focused investment firm Five Elms Capital. 

With the new capital, Gymdesk intends to expand and strengthen its solutions while growing its customer base via new verticals.

“At Gymdesk, we’ve created an industry-leading product in a market dominated by outdated solutions,” said Eran Galperin, the company’s founder and CEO. “We’re excited to partner with Five Elms and leverage their resources and expertise to continue growing our company as we take our operations to the next level.”

Launched in 2016 and steered by individuals with substantial industry knowledge, Gymdesk currently provides software for over 2,000 fitness gyms and studios across 34 countries. The brand manages memberships, billing, marketing, attendance tracking and more with different software solutions for gyms, martial arts schools, gymnastics, yoga studios, dance studios and Pilates studios. Gymdesk has made a name for itself especially among martial arts studios, with clients including Kaijin MMA and Heroes Martial Arts. 

Five Elms Capital specializes in fast-growing, B2B software business investments. Practice Better, an all-in-one practice management software platform for health and wellness pros, received a $27 million growth investment led by Five Elms Capital last year.

Outside Gymdesk, things remain fluid in the global fitness software space. Clubessential Holdings, a SaaS provider for health and fitness clubs, public golf courses, military organizations, camp organizations and more, is reportedly exploring a $3 billion sale. PerfectGym, a Poland-based software provider specializing in management solutions for fitness and leisure businesses, was just bought by German fit tech brand Sport Alliance. 

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New findings from the U.K. reveal that gym membership numbers, market value and penetration all surpass pre-pandemic levels and have hit all-time highs, according to a new report that’s bullish on the U.K.’s health and fitness industry’s future.

The results – courtesy of market intelligence company Leisure DB, highlight the health of the U.K.’s private fitness sector but indicate some challenges linger for the public sector gym market (defined as all U.K. public centers with a gym facility available to members of the general public on a pay-and-play or membership basis.)

Here are some key total market findings from Leisure DB’s State of the U.K. Fitness Industry Report 2024:

• The industry market value has increased to £5.9 billion ($7.6 billion) in 2024 (+9.7% since 2023 and an all-time high).

• There was a slight rise in the number of gyms, although the total remains below the highs of 2019. The report lists 7,009 gyms for the 12 months to the end of March 2024, whereas there were 7,239 in 2019. 

• Total U.K. gym memberships have increased to 10.7 million, up 4.1% from 10.3 million in 2021.

• The total penetration rate has reached 15.9%, exceeding 2019’s pre-pandemic high of 15.6%.

• PureGym and GLL remain the U.K.’s leading private and public operators, respectively, in terms of the number of gyms. 

• PureGym, SLM (Everyone Active) and JD Gyms are the only three operators to have added ten or more gyms in the last 12 months (34, 12, and 10, respectively.)

A Fitness Market Filled With Potential 

The report highlights the growing competition in London’s property market, considering large spaces typically reserved for big-box gyms are being targeted for activities such as virtual cricket and clay pigeon shooting, football or Formula 1 driving simulators. 

“There’s still room for big-box gyms as many landlords remain keen to offer well-being,” noted Central London Retail Dvision’s Steven Stedman and Will Brown. “But the market has slimmed down massively. You have to be the best in the game now. and the market has polarized: Anytime Fitness maintains a good presence, but generally, it’s either the leading low-cost operators — PureGym and The Gym Group — or high-end brands such as Third Space, and even more super-premium, on landlords’ radar.”

Mostly Good News for HVLP Gyms

Notably, Leisure DB’s findings show that the low-price fitness segment is less significant this year. Of the 120 new clubs that opened in the last two months, only 45 (37.5%) were low-cost, compared to the previous year, when low-cost fitness gyms accounted for 80 of the 145 new openings (55%). 

Still, the findings aren’t dampening the spirits of the U.K.’s leading private gym brands.

PureGym now operates 379 clubs in the U.K. and is the only operator to have more than 1.5 million members in the U.K. The brand plans to reach the 400-club mark in the U.K. over the next 12 months and is making a major play for the North American market to grow beyond its three locations. 

Behind PureGym is The Gym Group, the second largest private operator. The Gym Group added net four clubs for a grand total of 234 sites and has approximately 900,000 members. 

The high-value, low-price (HVLP) gym, founded in 2007, plans to open 10-12 locations this year and, over the next three years, plans to accelerate “site rollout.” 

“There continues to be substantial headroom for low-cost gyms in the U.K., and we are fully focused on making high-value, low-cost fitness even more accessible for all,” The Gym Group CEO Will Orr recently shared.

Following PureGym and The Gym Group are Anytime Fitness (178 clubs), Nuffield Fitness & Wellbeing (112 clubs) and David Lloyd Clubs (102 clubs). 

Franchise Health

The U.K.’s three largest franchise operators—Anytime Fitness, Energie Fitness and Snap Fitness — have 324 clubs between them, a slight drop from 327 in 2023 and combined membership remains at a similar level to 2023.

Anytime Fitness U.K. chair Andy Thompson noted that the fitness franchise is experiencing an all-time high when Anytime Fitness looks at member or visit numbers or system-wide sales. 

“We’re also seeing strong interest from people looking to invest in fitness, franchising, and Anytime Fitness specifically,” Thompson said. “We’re on track to sell the 25 franchise licenses we’ve targeted for 2024. With 185 clubs trading at the end of March and 200,000 members, we hit over one million visits a month for January, February and March. The trajectory looks exciting.”

Leisure DB’s State of the U.K. Fitness Industry Report 2024 can be found here. The report is free of charge this year, as part of Leisure DB’s effort to improve the health of the nation. 

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Europe is experiencing a fitness boom, with health and fitness center revenue and membership numbers topping pre-pandemic levels and 100 million European gym members predicted by 2030, according to a new report from EuropeActive and Deloitte.

European health and fitness center memberships grew to nearly 68 million in 2023, up from 62.9 million the year before. Revenues followed a similar trend, increasing by 14% to €31.8 billion ($33.8 billion) in 2023, an all-time high. The number of fitness clubs in Europe increased 1.4% to almost 65,000. 

The 2024 European Health & Fitness Market Report also found that the leading fitness operators in terms of membership for 2023 were Basic-Fit (3.8 million); RSG Group, owner of Gold’s Gym and others, (2.0 million); and PureGym (1.9 million).                  

Basic-Fit also scored the top ranking for revenue (€1,047 million), followed by David Lloyd (€854 million) and PureGym (€621 million). 

There was also strong deal-making activity among European brick-and-mortar health and fitness clubs, with 12 major mergers and acquisitions being completed in 2023, per the report.

US Fitness Leaders Make European Push

The projections are great news for American fitness brands looking to capitalize on Europe’s fitness surge.

Club Pilates, Xponential’s wildly successful franchise, has already gained ground in the European market, including signing a master franchisee to license a minimum of 75 Club Pilates studios in France over the next decade. Xponential’s Body Fit Training (BFT), a coach-led group strength and conditioning training franchise, has just opened a new Barcelona studio and also has a presence in the U.K.

Anytime Fitness, the big-box gym chain under the Self Esteem Brands umbrella, has its sights set on Europe (and elsewhere), with gyms expected to open across France and Italy.

Popular HIIT studio Barry’s is planning to open its doors to fitness enthusiasts in Barcelona this month as it brings its high-energy workout under red lights to more international markets.

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Value gyms may be a hit in the U.S. and Canada, but demand is also increasing across the pond. 

The Gym Group, a high-value, low-price (HVLP) gym operator in the U.K., just reported solid revenue growth of 18% in 2023, adding 850,000 members and opening six new gyms. The fitness brand, which was founded in 2007, says it plans to open 10-12 locations this year.

The fitness operator was recently declared one of the winners of the U.K.’s post-pandemic fitness industry boom for its accelerated growth from 32 locations in 2012 to its current 233 gyms.

“We have maintained positive momentum in revenue through the second half to deliver results that have offset cost inflation, in line with our guidance,” said CEO Will Orr. “With a strong start to 2024 and clear signs that demand for health and fitness has never been stronger, these are solid foundations on which to build our Next Chapter growth plan.”

Over the next three years, Orr says The Gym Group will accelerate “site rollout” and strengthen the performance of its core business. 

“There continues to be substantial headroom for low-cost gyms in the U.K., and we are fully focused on our aim of making high-value, low-cost fitness even more accessible for all,” he continued.

The Gym Group group offers gymgoers 24/7 access with contract-free memberships starting at £13.99/month. The gym offers fitness equipment and a variety of free fitness classes, including small group training, strength and conditioning, mind and body and cardio. Personal trainers are also available to create custom plans.

Like other low-price gyms such as Planet Fitness and Crunch, The Gym Group strives to cater to younger fitness consumers, welcoming members who are at least 16 years old and providing special discounts to college students.

Its approach appears to be working, with The Gym Group reporting that 92% of its members rated the brand four out of five and that more than 60 million member visits were made in 2023, with average visits increasing by 10% over the previous year.

Gyms Capitalize on UK Fitness Demand

The fitness club attributes the emergence of the HVLP gym market to “harsh economic times,” an increasingly competitive market and consumer demand for value. According to a factsheet on The Gym Group’s website, member surveys reveal that the club operator is attracting new fitness enthusiasts such as shift workers, students, retirees and those classified as low-income.

As The Gym Group plots its continued expansion, global gym franchise Anytime Fitness has also made headway in the U.K. with new gym openings, capitalizing on six vacant retail units — one of which was a former post office — in Loughton, Upminster, Brentwood, Leigh-on-Sea, Gerrards Cross and Wimbledon.

Although generally at a slightly higher membership price point than The Gym Group, Anytime Fitness sees the demand for fitness clubs in the U.K. and, at the same time, has been able to revive vacant spaces. 

“These new gyms have shown the ability of our sector to take on these high-footfall locations and give them a new lease of life as a facility that the local community can be proud of,” said Kieran Smith, senior property and relationships manager at Anytime Fitness U.K. “Despite the ongoing cost-of-living crisis, the demand for gym memberships hasn’t waned and this is being increasingly recognized by commercial landlords.”

PureGym, another U.K.-based gym brand, is taking a different approach and plans to bolster its presence in the U.S. and Canada under the Pure Fitness name, competing with the likes of stateside low-price, high-value fitness brands. Much like The Gym Group, the brand offers flexible 24/7 operating hours and a zero-contract membership model. 

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PureGym, a U.K.-based brand and the second-largest fitness operator in Europe, is planning to expand its high-value, low-price (HVLP) fitness franchise within the U.S. and Canada under the Pure Fitness name, touting its flexible 24/7 operating hours and zero-contract membership. 

The PureGym brand has teamed with RCS Real Estate Advisors to bolster its North American presence, looking to scale beyond its current three Pure Fitness locations in the Washington, D.C. metropolitan area.

The gym franchise’s mission is to become one of the largest fitness operators as it seeks qualified franchisees for all U.S. markets, tapping RCS for its expertise in navigating complex commercial real estate matters and experience in site selection and lease negotiation. 

“Pure Fitness is proud to partner with RCS Real Estate Advisors to facilitate our ambitious venture into North America,” said James Hathaway, group international strategy and franchising director at Pure Fitness. He added that the firm’s proven track record in retail real estate strategy aligns perfectly with the brand’s plans for expansion. 

“This collaboration will create a solid growth plan as we expand our presence in the North American market,” Hathaway continued. “With increased awareness around health, well-being and the role fitness plays in a happier and more fulfilling life, we are thrilled to be able to help individuals achieve their fitness goals.”

A potential competitor to the likes of Planet Fitness and Crunch Fitness in America, Pure Fitness offers traditional gym equipment, fixed-resistance and free weights, and instructor-led cardio, sculpt and tone, mind and body, and functional fitness classes. Personal trainers are also available, along with digital classes. 

Since launching in the U.K. in 2008, PureGym has amassed over 1.9 million members across 595 clubs in the U.K., Denmark, Switzerland, U.S., Saudi Arabia and UAE. 

Moe Puri, vice president at RCS Real Estate Advisors, noted that the RCS team is committed to identifying ideal locations and franchising opportunities to drive Pure Fitness forward in the North American market.

“It is our aim to make the Pure Fitness experience readily accessible to new customers, as well as ensure that communities across the U.S. and Canada can benefit from the brand’s holistic ethos,” Puri said.

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