David Lloyd Leisure, a prominent European health and fitness operator, has announced the acquisition of the Harbour Club brand and its three London locations. This move coincides with the company's strategic expansion into Italy, marked by a significant investment in a new club near Milan.
The dual announcements signal a period of focused growth for the company, strengthening its premium market position in the UK while establishing a new foothold in mainland Europe. The expansion follows a period of consistent revenue growth and is backed by the company's parent, TDR Capital.
Key Takeaways
- David Lloyd Leisure has acquired the Harbour Club brand and its three clubs in London.
- The company is expanding into Italy with the acquisition of the Malaspina club near Milan.
- A €6 million investment is planned to refurbish the new Italian facility, which will be renamed David Lloyd Malaspina.
- This expansion is part of a broader strategy to grow the company's presence across Europe.
Strategic UK Acquisition
David Lloyd Leisure has finalized the acquisition of the Harbour Club, a well-known premium fitness brand with three locations in London. The clubs are located in Chelsea, Notting Hill, and Kensington. Previously, David Lloyd operated these clubs under a management contract but did not own the brand itself.
By acquiring the brand, David Lloyd Leisure consolidates its control over these high-value assets. This allows the company to fully integrate the Harbour Club into its portfolio, aligning its operations and brand strategy more closely with its core business. The move solidifies the company's leadership position in the UK's premium health and fitness market.
Background on the Harbour Club
The Harbour Club has long been associated with luxury and exclusivity in London. Its Chelsea location, in particular, was famously a favorite of Diana, Princess of Wales. The brand caters to a high-end clientele, offering extensive racquets facilities, state-of-the-art gyms, and premium spa services, making it a natural fit for David Lloyd's premium segment.
Glenn Earlam, CEO of David Lloyd Leisure, commented on the importance of the acquisition. He noted that owning the brand provides greater strategic flexibility and reinforces the company's commitment to the premium end of the market. This step is seen as a crucial part of securing its domestic foundation while it pursues international growth.
Expansion into the Italian Market
In a significant step for its international strategy, David Lloyd Leisure has entered the Italian market. The company has acquired the Malaspina club located in Sartirana, a community situated between Milan and Pavia. This marks the company's first venture into Italy, expanding its European footprint to its 11th country.
The new site, to be rebranded as David Lloyd Malaspina, is a substantial facility set on 10 hectares of land. The acquisition provides David Lloyd with an established location that has a strong reputation for racquets sports, a core component of the David Lloyd brand identity.
Details of the David Lloyd Malaspina Club
The Malaspina club is one of Italy's most prestigious racquets clubs. Its existing infrastructure provides a strong base for David Lloyd's planned upgrades. The key facilities include:
- 17 tennis courts
- 2 padel courts
- 2 swimming pools, including one Olympic-sized outdoor pool
- A full-service spa
- A restaurant and bar
- Comprehensive children's facilities
This extensive range of amenities aligns perfectly with David Lloyd's family-oriented, premium club model, which emphasizes a holistic approach to health, fitness, and leisure.
A €6 Million Investment Plan
To bring the new Italian club in line with its brand standards, David Lloyd Leisure has committed to a €6 million refurbishment program. This substantial investment will be used to upgrade and modernize the existing facilities, ensuring they meet the expectations of members at its other premium locations across Europe.
Investment Allocation
The refurbishment will focus on key areas of the club. Plans include modernizing the gym with the latest fitness equipment, enhancing the spa facilities to create a luxury wellness destination, and updating the restaurant and social areas. The investment underscores the company's long-term commitment to establishing a successful presence in Italy.
CEO Glenn Earlam stated that the investment is crucial for the project's success.
"We are delighted to have secured our first club in Italy, a country which we believe offers us a great opportunity to grow and expand the David Lloyd brand," Earlam said. "The €6 million investment will ensure the club's facilities are best-in-class."
The refurbishment is expected to create a flagship location that will serve as a model for potential future clubs in the region. The company aims to leverage its expertise in creating family-friendly environments that offer a wide range of activities for all ages.
Broader European Growth Strategy
The move into Italy is a key component of David Lloyd Leisure's wider European expansion plans. The company already operates clubs in 10 other countries, including the Netherlands, Spain, Belgium, and Germany. According to the company, it continues to seek new opportunities for both acquisitions and new-build sites across the continent.
This strategy is supported by strong financial performance. The company has seen consistent growth in both revenue and membership numbers in recent years. This financial stability, backed by its parent company TDR Capital, provides the resources necessary to fund ambitious expansion projects like the one in Italy.
David Lloyd Leisure by the Numbers
As of this expansion, David Lloyd Leisure operates 130 clubs, with 100 in the UK and 30 across mainland Europe. The group serves approximately 730,000 members and employs around 8,600 staff members, including over 2,000 health and fitness experts and 680 tennis professionals.
The company's growth model focuses on identifying markets with a strong demand for premium health and leisure services. By acquiring existing clubs with good infrastructure, like Malaspina, David Lloyd can enter new markets more efficiently and begin generating revenue faster than with new construction projects. This approach allows for a more rapid and scalable expansion across target regions in Europe.
