David Lloyd Clubs has announced a major £350 million investment plan aimed at expanding its UK presence and upgrading existing facilities over the next five years. The significant capital injection follows a period of strong financial performance for the health, spa, and racquet club operator.
The company is set to open new clubs in prominent locations, including Bicester and Shawfair near Edinburgh, while introducing more premium features like luxury spa retreats and the increasingly popular sport of padel across its portfolio. This strategy signals a clear focus on the high-end wellness and leisure market.
Key Takeaways
- David Lloyd Clubs is investing £350 million over five years for UK expansion and club upgrades.
- New clubs are confirmed for Bicester and Shawfair, with more locations under review.
- The investment focuses on adding premium facilities, including luxury "Spa Retreats" and padel tennis courts.
- The company reported record financial results, with revenues reaching £788 million and EBITDA at £210 million.
A £350 Million Vision for UK Leisure
David Lloyd Clubs is embarking on an ambitious growth phase, dedicating £350 million to enhance its UK operations. This five-year plan is designed to elevate the member experience and broaden the company's footprint across the country.
A significant portion of the investment will fund the development of new, state-of-the-art clubs. The first of these new sites are planned for Bicester, Oxfordshire, and Shawfair, a new town development on the outskirts of Edinburgh. The company is also actively exploring opportunities for further expansion in other strategic locations.
In addition to new builds, the capital will be used to modernise and upgrade many of its 103 existing UK clubs. The initiative underscores the company's confidence in the growing demand for premium health and wellness services.
From Local Club to European Leader
Founded in 1982 by former professional tennis player David Lloyd, the company opened its first club in Heston, West London. It has since grown to become Europe's largest health, spa, and racquets group, operating 133 clubs across nine countries and serving over 750,000 members. The business was acquired by private equity firm TDR Capital in 2013.
Focus on Premium Experiences and Emerging Trends
The core of the investment strategy is a pivot towards more luxurious and comprehensive wellness offerings. A key feature of this upgrade is the rollout of its exclusive "Spa Retreat" concept.
These spa areas are designed to offer a premium, resort-like experience, featuring:
- Hydrotherapy pools
- Himalayan salt saunas
- Crystal steam rooms
- Fire and ice rooms
- Deep relax rooms
The company has already introduced these high-end spas in several locations and plans to add them to more clubs as part of the refurbishment program. This move positions David Lloyd Clubs to compete not just with other gyms, but with dedicated spa and wellness destinations.
Embracing the Padel Craze
Recognising a major trend in racquet sports, the company is also heavily investing in the construction of padel courts. Padel, a hybrid of tennis and squash, has seen a surge in popularity across Europe.
What is Padel?
Padel is a racquet sport typically played in doubles on an enclosed court about 25% smaller than a tennis court. Its rules and gameplay make it accessible for beginners while still being challenging for experienced players. David Lloyd Clubs currently operates 75 padel courts and is one of the largest providers of the sport in the UK.
By expanding its padel facilities, the company aims to attract new members and retain existing ones by offering the latest in fitness and social activities. The investment reflects a commitment to staying current with evolving consumer preferences in the leisure sector.
Record Financials Underpin Expansion
The ambitious expansion plan is supported by a period of robust financial health. The company recently reported record-breaking results, with total group revenues climbing to £788 million. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also reached a new high of £210 million.
"Our record-breaking results are a testament to our continuous investment in our clubs and the team members who work tirelessly to provide an exceptional experience for our members," stated Russell Barnes, CEO of David Lloyd Clubs.
This strong performance provides a solid foundation for the new investment cycle. According to company leadership, the focus remains on delivering premium experiences that justify member loyalty and attract new customers seeking comprehensive wellness solutions.
Barnes further commented on the company's direction, stating, "With the backing of our owners TDR Capital, we are continuing to invest in our facilities to help cement our position as the UK’s leading health, spa and racquets group." This statement reinforces the long-term vision for growth and market leadership, driven by a cycle of investment and reinvestment into the quality of its clubs.
