David Lloyd Leisure has announced plans to open 13 new spa retreats this year as the health club chain launches a “massive investment” plan to tap into the growing trend for premium health and wellbeing.
Russell Barnes, group chief executive, said the group aims to have 40 spa retreats by the end of 2024 under its plan to upgrade its 133-strong estate.
Speaking to the PA news agency, he said the move comes as people are prioritising health and wellbeing more since the pandemic.
He said: “There’s been a fundamental shift in people looking after their health and wellness and we think it’s here to stay.”
“The need to be social and meet your friends for a cup of coffee and do something that makes you feel better, whatever that is – the need to take time out for yourself.”
He revealed that the group lost 14% of its members during the peak of the pandemic. However, this bounced back within six months and has been growing ever since.
The group now has over 750,000 members across its clubs. This includes 103 sites in the UK and an additional 30 in mainland Europe.
The upscale chain recorded a record 52 million member visits in 2023. This is 10 million more than the previous year, following a £120 million investment into its clubs last year.
Mr Barnes explained that even with higher living costs, people still prioritised their health and fitness services.
“We’re an expensive choice, we know that,” he said to PA. But he added: “Our members want us to become even more premium.”
“They want the quality to increase, so we’ve got a massive investment programme over the next five years.”
The company is adding new spa retreats, 15 padel tennis courts, and seven pickleball courts. It is spending £30 million on solar panels and £20 million on saving energy.
Private equity firm TDR Capital bought David Lloyd Leisure in 2013 for about £750 million.
Last June, it was revealed that TDR, which also owns supermarket Asda along with the billionaire Issa brothers, had brought in advisers to explore strategic options for the group, including a potential sale. Reports at the time suggested that TDR was hoping for offers exceeding £2 billion for David Lloyd.
Mr Barnes praised TDR as “fantastic” long-standing owners, but noted “it’s no surprise that they will want to realise their investment and sell it on”.
“Right now there’s nothing going on around that,” he emphasised.
TDR chose not to comment.
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