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IHRSA Index Indicates Health Club Growth in Third Quarter 2011

Total revenue for the 14 clubs in the International Health, Racquet and Sportsclub Association’s (IHRSA) “2011 Third Quarter Index” increased 8.4 percent as membership dues revenue and non-dues revenue improved by 6.7 percent and 12.2 percent, respectively, in third quarter 2011. Third quarter 2011 marked the sixth consecutive quarter of increased performance for the 14 U.S. health and sports club companies included in the index, according to IHRSA.

The index reports the financial performance of a sample of the commercial health club industry for the months of July through September. The 14 clubs, which are not identified, represent a total of 501 facilities and own/manage an average of 36 facilities (same-store count average of 15 facilities).

“The IHRSA Index sustained the momentum of strong performance over the first six months of 2011,” said Jay Ablondi, IHRSA’s executive vice president of global products. “In the third quarter, clubs saw the greatest improvements in total revenue, membership dues revenue and non-dues sales for the year.”

Membership dues revenue came in at a mean of $28.1 million and a median of $5.2 million. Non-dues revenue came in at a mean of $11.4 million and a median of $2.4 million.

Membership accounts for the participating clubs grew by 6.1 percent for the quarter. EBITDAR improved by 10.4 percent, up from a company average of $13.3 million to $14.6 million.

Same-store facilities (clubs that have been in operation for at least two years) reported slightly lower increases in revenue and membership accounts. Total revenue grew by 1.4 percent ($11.8 million mean and $6.3 million median), while membership dues revenue grew by 0.9 percent ($8.3 million mean and $4.3 million median). Non-dues revenue increased by 2.1 percent ($3.5 million mean and $1.9 million median). Same-store total membership accounts remained relatively steady at an average of 46,000 accounts per company (0.5 percent increase).

“While the overall index has posted steadily improving performance, same-store clubs continue to record consistent metrics,” said Melissa Rodriguez, IHRSA’s senior manager of research. “In this economy, even steady to slightly improved performance bodes well for the future of the health club industry.”

IHRSA cautioned that this data is intended to provide a snapshot of U.S. health club industry performance. The results are based on a small sample of companies, and care should be taken when making comparisons of these findings to the overall industry-at-large, the trade association for for-profit health clubs said. Industry Insights Inc. conducted the survey for IHRSA.

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