Planet Fitness franchisee Planet Fitness Midwest, Cincinnati, Ohio, recently announced plans to double its original expansion plan for the St. Louis area to 22 clubs.
There are currently five Planet Fitness clubs operating in the St. Louis area, and the expansion investment of $100 million is expected to create 300 new jobs, according to a Feb. 2 press release from Planet Fitness Midwest announcing the expansion plans. Planet Fitness Midwest opened its first St. Louis-area location in Overland, Missouri, in 2014 with original plans to add 11 clubs in the area.
"The [St. Louis] market is very similar to the Cincinnati area, except it's larger," Planet Fitness Midwest Chief Operating Officer Michael Hamilton told the St. Louis Post-Dispatch. "We see a lot of opportunities because there are not that many competitors in the area."
Planet Fitness Midwest plans to acquire Xist Fitness, Fenton, Missouri, and will cross-honor memberships, according to the announcement. Terms were not disclosed. Xist Fitness has locations in Concord, Arnold and Shrewsbury, Missouri.
"We are thrilled to partner with Planet Fitness and to join the Planet Fitness family. We are excited about the fact that our members will be able to enjoy the benefits of belonging to one of the fastest growing national health club franchises. We are certain it will be a seamless transition and a win-win for all involved," Xist Fitness Owner Todd Beckman said in a statement.
Hamilton also told the Post-Dispatch that Planet Fitness Midwest is evaluating other acquisition opportunities in the region.
Planet Fitness Midwest opened its flagship location in Edwardsville, Illinois, earlier this year and plans to open the 20,000-square-foot club in Shrewsbury this spring. The new location in Arnold is expected to follow the Shrewsbury opening, according to the announcement. Planet Fitness Midwest opened Missouri locations in Wentzville, St. Peters and Ferguson in 2015.
"We're excited by the reception that Planet Fitness has received in the St. Louis market," Hamilton said in a statement. "The demand we've experienced has confirmed our original belief that St. Louis and the surrounding communities are a great fit for what Planet Fitness offers – a high-quality, non-intimidating, fitness experience at an extremely affordable price."
Also on Feb. 2, the largest Planet Fitness franchisee in Texas, Excel Fitness Holdings Inc, was acquired by Altamont Capital Partners.
Planet Fitness, Newington, New Hampshire, ranked No. 7 on Club Industry's Top 100 Health Clubs of 2015 with reported 2014 revenue of $279.8 million. The company has more than 1,000 locations in 47 states, the District of Columbia, Puerto Rico, Canada, and the Dominican Republic. More than 90 percent of Planet Fitness stores are owned and operated by franchisees.