Genesis Acquires Nebraska Elite Sports and Fitness

Genesis Health Clubs, Wichita, Kansas, has become one of the largest fitness brands in the Midwest after its recent acquisition of Omaha-based Nebraska Elite Sports and Fitness Complex, the companies announced Wednesday. Rodney Steven, owner and president of Genesis Health Clubs, declined to give the purchase price of the acquisition.

Elite Sports and Fitness marks Genesis’ 10th health club in Nebraska and its 41st in the region, according to a statement issued by Genesis. The 108,000-square-foot, standalone facility features a cycling area, yoga studio, swimming pool, steam room, running track, full-service day care and volleyball and basketball courts.

As part of its greater rebranding effort, Genesis will soon launch a multi-million-dollar renovation project at Elite Sports and Fitness, Steven told Club Industry. The project will update nearly every facet of the building and should be completed by 2018.

"We've been working on this for over a year now," Steven said. "It's just kind of one of those landmark facilities that's been there forever and needs an operator to come in and take care of it. That's what we do. We're health club guys, and we love the club, we love the member.

"The club long had investors," Steven said of Elite Sports and Fitness. "It wasn't being run by health club people. We want to make it one of our flagship facilities.”

Genesis doubled its number of clubs in 2016 from 20 to 41. Acquisitions included 19 24 Hour Fitness locations in the Midwest although the company immediately sold the four St. Louis locations and two Oklahoma City locations to Gold's Gym. Most of the other purchases were of Gold’s Gym locations, including two clubs in Omaha; two clubs in Lincoln, Nebraska; four locations in the Kansas City metropolitan area and two locations in Tulsa, Oklahoma.

Nebraska Elite Sports and Fitness Complex is now the 10th Nebraska club owned and operated by Rodney Steven and Genesis Health Clubs.

Effective immediately, Elite Sports and Fitness members can access these other Genesis locations.

Steven sees the Nebraska market as a natural extension for Genesis, which also owns clubs in Oklahoma, Missouri and Kansas.

He also noted that Genesis does not have investors and is traditionally financing each of its acquisition projects.

“Construction is a lot of work,” he said. “It’s always a little over-budget and takes longer than it's supposed to. And it’s more capital-intensive because we own our own facilities, we own the land, and don’t traditionally lease.

“We’re getting better and better with every [project], though,” he said.

Steven’s top priority is “building culture” at Genesis’ recently acquired clubs. He anticipates more growth, including expansion outside of the Midwest.

“We’re excited about the future, but we have our hands full right now,” he said.