David Lloyd Leisure, a leading health and wellness group in the UK, has announced a significant investment of over £100 million into its club network throughout 2024. This financial commitment is directed towards opening new facilities, upgrading existing clubs, and enhancing digital services for its members.
The investment signals strong confidence in the premium health and fitness sector, focusing on family-oriented and high-end experiences. A key part of this expansion is the recent opening of a new club in Rugby, Warwickshire, which represents a £12 million portion of the overall investment and has created 80 local jobs.
Key Takeaways
- David Lloyd Leisure is investing over £100 million in its UK clubs during 2024.
- The investment covers new club openings, major refurbishments, and digital platform enhancements.
- A new £12 million club recently opened in Rugby, creating 80 new full-time and part-time jobs.
- The company plans to open at least five more new clubs in the coming years, with a focus on premium, family-friendly facilities.
Strategic Investment in Premium Wellness
The £100 million investment by David Lloyd Leisure is a strategic move to solidify its position in the UK's premium wellness market. The funds are allocated across several key areas designed to improve the member experience and expand the company's footprint.
According to the company, the investment is split between new builds, large-scale renovation projects at existing sites, and the development of its digital app. This multi-faceted approach aims to cater to changing consumer demands for high-quality, integrated health and leisure services.
Focus on New Club Development
A significant portion of the capital is dedicated to opening new clubs. The latest addition, David Lloyd Rugby, opened its doors in late 2023. This 9,500-square-meter facility is a prime example of the company's modern club concept, featuring extensive amenities for fitness, relaxation, and family activities.
The Rugby club includes a 100-station gym, various group exercise studios, indoor and outdoor swimming pools, and tennis and padel courts. It also features a large 'Clubroom' for socialising and a dedicated 'DL Kids' area, highlighting the brand's focus on serving the entire family.
Upgrading the Existing Network
In addition to new sites, David Lloyd is channelling funds into upgrading its established clubs. Several locations, including Bristol Westbury, Manchester Trafford, and Worcester, are undergoing major refurbishments. These projects often involve modernising spa facilities, upgrading gym equipment, and redesigning social spaces.
"Our investment strategy is focused on ensuring our clubs remain at the forefront of the premium health and wellness sector. We are committed to providing state-of-the-art facilities for our members, whether that's through building brand new clubs or reinvesting to enhance our existing locations." - Russell Barnes, CEO of David Lloyd Leisure.
These upgrades are crucial for retaining members in a competitive market. The focus is on creating 'third spaces'—environments outside of home and work where individuals and families can spend quality time. This includes improvements to cafes, business lounges, and outdoor terraces.
The Rise of Padel and Spa Facilities
A notable trend in David Lloyd's investment is the expansion of padel tennis courts and luxury spa areas. Padel, a sport that combines elements of tennis and squash, has seen a surge in popularity across the UK.
The company is now one of the largest padel operators in the country, with plans to add more courts to meet high demand. This reflects a strategy of adopting popular new leisure trends to attract a wider demographic.
Similarly, the enhancement of spa facilities, branded as 'Spa Retreats', is a key part of the premiumisation strategy. These areas offer hydrotherapy pools, saunas, steam rooms, and relaxation zones, catering to the growing consumer interest in wellness and recovery.
- New Padel Courts: Added to clubs across the country to meet rising demand.
- Spa Retreats: Development of luxury spa areas with a range of thermal facilities.
- Family Focus: Continued investment in kids' clubs and family-friendly swimming pools.
Future Growth and Market Outlook
David Lloyd Leisure has outlined ambitious plans for the coming years. The company aims to open at least five more new clubs, continuing its expansion into areas with strong demand for premium health facilities. Sites have already been identified for future development, although specific locations have not yet been publicly announced.
This growth strategy is supported by strong financial performance. The company reported a 15% increase in revenue in its latest financial filings, indicating robust demand for its services despite broader economic pressures. This performance allows for continued reinvestment into its facilities.
Digital Transformation
Alongside physical expansion, the company is investing in its digital platform. The David Lloyd Clubs app is central to the member experience, allowing for class bookings, activity tracking, and access to on-demand workouts. Enhancements to the app are a core part of the 2024 investment plan, aiming to create a seamless connection between the physical club and the digital experience.
This 'omnichannel' approach is becoming standard in the fitness industry, where members expect convenience and connectivity. By investing in technology, David Lloyd aims to improve member engagement and operational efficiency.
The company's substantial investment underscores a positive outlook for the UK's health and wellness industry, particularly at the premium end. By focusing on high-quality facilities, diverse activities like padel, and a strong family offering, David Lloyd is positioning itself for sustained growth in the years ahead.
