IHRSA Report: Health Clubs Saw 5.3% Revenue Growth from 2013 to 2014
Posted: May 16, 2016 in IHRSA
2015 IHRSA Profiles of Success
BOSTON, MA – Overall, health clubs posted revenue growth of 5.3% from 2013 to 2014, according to the 2015 IHRSA Profiles of Success report.
Multipurpose and independent clubs reported median retention rates of 69% and 79%, respectively. Fitness-only clubs reported a median net membership growth of 4.2%, while clubs part of a chain achieved a median net membership growth of 9.4%, the highest among all segments observed.
“IHRSA’s annual industry data survey results indicate that leading club operators continue to play to their strengths as respondents recorded improvements in key financial and membership metrics,” said Jay Ablondi, IHRSA’s executive vice president of global products. “This year’s results show multipurpose and independent club reported strong retention results in 2014, while fitness-only and chain facilities posted high net membership growth. All segments increased revenue on a year-over-year basis.”
The report provides a detailed analysis of the annual performance of leading health and fitness clubs, including key performance metrics such as revenue and membership growth, payroll, member retention, non-dues revenue, and EBITDA. Profit center analysis as well as income statement and balance sheet data are also provided.
Additional key findings include:
- Fitness-only clubs reported the greatest revenue growth across all segments by club type (+8.9%).
- Multipurpose clubs generated the greatest revenue per individual member ($810.80).
- Smaller clubs generated less revenue per individual member ($637.50) in comparison with larger clubs ($1,298.60), but achieved greater gross revenue growth (8.2% vs. 3.5%).
- Total payroll claims a median 39% of total revenue for all responding clubs.
- Clubs reinvested roughly 3% of total revenue into fitness equipment.
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