David Lloyd Leisure, a prominent health and wellness club operator, has announced significant financial growth for 2023, with revenues reaching £785 million. The company is actively pursuing expansion across the UK, mainland Europe, and the Middle East, with several new clubs planned to open in the near future.
The group, which operates 133 clubs, saw its earnings before interest, tax, depreciation, and amortization (EBITDA) increase by 39% to £234 million. This performance highlights a strong recovery and growing demand for health and wellness facilities following the global pandemic.
Key Takeaways
- David Lloyd Leisure's revenue grew to £785 million in 2023, a 31% increase from the previous year.
- EBITDA rose by 39% to £234 million, indicating strong profitability and operational efficiency.
- The company plans to open new clubs in Rugby, UK, and Casteldeffels, Spain, in 2024.
- Expansion into the Middle East is underway, with a new club set to open in Dubai in 2025.
- The group's membership has grown to 753,000, an increase of 30,000 members since the end of 2022.
Financial Performance and Membership Growth
David Lloyd Leisure has demonstrated a robust financial turnaround. The company's 2023 revenue of £785 million marks a significant 31% increase compared to £599 million in 2022. This growth reflects the company's successful strategy in attracting and retaining members in a competitive market.
The increase in profitability is even more pronounced. With an EBITDA of £234 million, the company surpassed its 2022 figure of £168 million by 39%. This financial health provides a solid foundation for its ambitious expansion plans.
Membership numbers have also seen a positive trend. The group now serves 753,000 members across its network, which is an increase of 30,000 from the end of 2022. According to the company, this growth is driven by a strong demand for premium family-oriented health and wellness facilities.
By the Numbers: David Lloyd's 2023 Performance
- Total Revenue: £785 million
- EBITDA: £234 million
- Total Members: 753,000
- New Members in 2023: 30,000
- Total Clubs: 133 (103 in the UK, 30 in mainland Europe)
Strategic Expansion Across Multiple Regions
A key part of David Lloyd Leisure's strategy involves expanding its physical footprint. The company is not only focusing on its home market in the UK but is also making significant moves into mainland Europe and the Middle East.
United Kingdom and European Growth
In the UK, a new club is scheduled to open in Rugby later in 2024. This follows the successful launch of a new facility in Bicester in 2023. These new locations are part of a continuous effort to bring premium wellness services to more communities.
Mainland Europe remains a critical area for expansion. A new club in Casteldeffels, near Barcelona, Spain, is also set to open its doors in 2024. This adds to the company's existing portfolio of 30 clubs across countries like Spain, Italy, France, and Germany.
Background on David Lloyd Leisure
Founded in 1982, David Lloyd Leisure has grown to become one of Europe's leading health, sport, and leisure groups. The company operates a mix of fitness centers, tennis courts, swimming pools, and spa facilities, catering primarily to families and individuals seeking a comprehensive wellness experience. The majority of its clubs are located in the UK, but it has steadily expanded its international presence over the past decade.
Venturing into the Middle East
The company is also breaking new ground by expanding into the Middle East. A franchise agreement has been signed to open a new club in Dubai in 2025. This move signals the brand's global appeal and its strategy to enter new, high-growth markets.
"Our record results in 2023 are a testament to the success of our investment in our clubs and the growing demand for premium health and wellness facilities. We have a strong pipeline of new openings and are excited about our future growth opportunities in the UK, Europe and the Middle East."
- Russell Barnes, CEO of David Lloyd Leisure
Investment and Future Outlook
David Lloyd Leisure is committed to reinvesting in its existing properties to maintain high standards and enhance the member experience. The company has invested more than £200 million over the past two years to upgrade its facilities, with a focus on spas, clubrooms, and outdoor spaces.
This ongoing investment is a core part of the company's strategy. By modernizing its clubs, David Lloyd aims to meet the evolving expectations of its members and differentiate itself from competitors. This includes adding new spa retreats and improving family-friendly areas.
The company's leadership is optimistic about the future. CEO Russell Barnes highlighted the strong performance and the robust pipeline of new projects as key indicators of continued success. The focus remains on providing premium experiences that support the physical and mental well-being of its members.
With a clear strategy for growth, significant capital investment, and rising membership, David Lloyd Leisure appears well-positioned to strengthen its market leadership in the health and wellness sector across Europe and beyond.
