Benchmarking the Health Club Business: The 2010 Profiles of Success Analyzes Membership & Operations Results from Leading Clubs

BOSTON - January 4, 2011 - The International Health, Racquet & Sportsclub Association (IHRSA) announced the release of the 29th edition of its annual Industry Data Survey (IDS) results and the accompanying publication, The 2010 IHRSA Profiles of Success, a detailed analysis of the annual performance of leading clubs within the health and fitness club industry.

The 2010 IHRSA Profiles of Success is based upon membership and financial data for 2009 provided voluntarily by leading IHRSA member clubs in the United States and Canada. The report provides key performance indicators for several club types: fitness-only, multipurpose, independent, and multi-chain facilities. Performance is also presented and analyzed by club size. A snapshot of health club consumer participation and demographics is also included in the report.

"Although limited consumer discretionary income affected both health club consumer behavior and club operations, consumers continued to visit their health clubs regularly," said Jay Ablondi, IHRSA's Executive Vice President of Global Products. "Experienced managers were able to improve aspects of club operations and maintain membership."

Participating clubs indicated a healthy median for member retention at 71.1%. Sample clubs also reported an increase in revenue per individual member from $732.10 in 2008 to $763.3 in 2009, an improvement of 4.3%. Select segments reported improvements in EBITDA, most notably, clubs that are part of a chain. These facilities improved EBITDA from 18.9% in 2008 to 19.6% in 2009.

The 2010 IHRSA Profiles of Success contains a new profit center section that analyzes revenue streams from racquet sports, spas, pro shop/retail, food & beverage, and youth programs. All clubs reported a median of 8.9% of total revenue derived from spa services. Youth programs accounted for 4.5% of total revenue.

Building upon the in-depth analysis of the industry and responding club company data, highlights also include the following:

Industry Outlook - overview of industry growth & trends, leading club companies, IHRSA club performance, and consumer demographics & participation.
Membership Growth & Traffic - analysis of health club membership activity and growth by club type & size
Benchmark & Financial Performance - breakdown of financial performance by club type & size, club pricing, payroll, facility reinvestment, and income statement/balance sheet data.
"This edition of Profiles of Success is an essential guide for club operators to review how their club's performance ranked against similar facilities during a slowly recovering economy," said Melissa Rodriguez, IHRSA's Research Manager. "This year's report is also a great tool for equipment suppliers and investors. Equipment suppliers will better understand the priority operators place on facility reinvestment during challenging times, and investors will gain insight into club membership and financial performance."

All clubs reported a median of 4.0 percent of total revenue allocated to facility reinvestment. Club companies that allocated a greater percent of total revenues to facility reinvestment reported better key performance indicators than firms that reported less than the sample median. In some cases, sample clubs that prioritized facility reinvestment outperformed those who postponed such expenditures in the following key indicators: revenue growth, net membership growth and EBITDA.

The 2010 IHRSA Profiles of Success may be purchased in full or in sections at the IHRSA Store (ihrsa.org/store). The entire PDF can be purchased for $399.95 ($199.95 for IHRSA members) or in three separate parts for $139.95 each ($69.95 each for IHRSA members).

Contact IHRSA Research at research@ihrsa.org or +1-617-951-0055 with questions or for more information.

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. IHRSA and its members are dedicated to making the world healthier through regular exercise and fitness promotion. IHRSA and the health club industry will be convening in San Francisco, California from March 16-19 for IHRSA's 30th Anniversary International Convention & Trade Show. Find an IHRSA club at healthclubs.com.

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