Low-cost gyms have begun to conquer the streets of European cities. Often empty, these spaces are open all day, some even never close, so clients can train at three in the morning if they wish. Through online advertisements and posters posted on their windows, these chains want to seduce consumers with flexible hours and low prices: fees starting at 15 euros per month, without paying registration or signing a commitment to stay.
In Barcelona, the protagonists are companies such as Anytime Fitness, Viva Gym, Altafit, Basic Fit or McFit. Who is behind these businesses? In most cases, large investment funds from abroad that have seen the Spanish market as an opportunity to make cash, in line with what is happening in other European countries, such as the United Kingdom or Germany.
For example, the Viva Gym chain is controlled by the American fund Providence; Basic Fit, which acquired McFit, is a publicly traded company and is controlled by several funds, such as Impactive Capital, North Peak Capital, 3i Private Equity or MIT Investment, none of which are Spanish. In the case of the Altafit chain, the owner is MCH Private Equity, a Spanish fund that in turn has iFitnes and in the case of Anytime Fitness, the owner is a group from the United States controlled by the founders.
“Body worship and healthy habits are on the rise and, therefore, fitness, specifically low-cost, is a growing business. It is affordable for a large part of the population, especially the youngest, and the flexibility of conditions responds to the demands of their lifestyle,” says Miguel Montero, a partner at KPMG specialized in transaction services.
The business is attractive for investment funds since, in addition to presenting good growth prospects, it operates with a low-cost model and an EBITDA (gross profit) of more than 15%. The owners or franchisees must face the rental of the space, the payment of machinery and a labor cost of less than ten workers. “In addition, the business is stable throughout the year since the customer cancellation rate is low because the prices are affordable,” says Montero. The consultant adds that, in recent years, investment funds have found a new vein of business: selling the service directly to companies, which seek to offer their employees the gym as an incentive to retain them.
A report prepared by Deloitte in 2023 ensures that Spain, where there are more than 4,000 gyms of all types, is one of the "large markets" in which investment funds have the potential to concentrate the sector in a few operators. “There was a period of growth between 2015 and 2021 and, in that year, a relevant concentration process where the 12 main operators went from 492 centers in 2021 to 726 in April 2024,” says Alberto Puente, Deloitte partner in the financial consulting. For example, Viva Gym has acquired Duet Fit, Happy Gym and Fitness Hut and, in the case of Basic Fit, the chain has acquired McFit. “This scenario is not common in Europe since Spanish operators are smaller than European operators in number of centers,” he points out. The expectation, he concludes, is that the market will evolve towards greater concentration with a few large groups.
These chains will coexist, of course, with municipal centers, chains that receive public concessions and private gyms with premium services. Montero concludes that with this panorama, the neighborhood gym is on its way to disappearance.
