Gyms in Afghanistan

By Ryan on August 20th, 2007

According to the August issue of Men’s Health magazine the  Mr. Afghanistan bodybuilding contest has become the hottest ticket in town…

Since the fall of the Taliban, gyms have opened throughout Kabul.  You see them everywhere, tucked into garage-size storefronts beneath huge pieces of plywood.  The gyms… stand in the shadow of shattered buildings, beside other shops selling sacks of cement and cases of Coke — the foundations on which all great nations are built.  (New York times)

It may seem odd to some that in a country ravaged by war with little or no facilities that fitness is of any concern. 
Maybe the fact is because the lack of these facilities or more importantly services TV and the other deterrents of Western society they have more time to focus on themselves.

There may be a lesson in that for all of us?????

Esporta - UK

By Ryan on August 18th, 2007

LONDON (Reuters) - Upmarket fitness chain Esporta, whose parent companies filed for administration, has been approached by a handful of private equity firms in search of a bargain, people familiar the situation said on Thursday.  Esporta and administrators Grant Thornton declined to comment.

Syrian-born billionaire Simon Halabi bought Esporta last year for 500 million pounds with SocGen’s financing.  Halabi’s loss could reach as much as 150 million pounds if the company is sold for about 300 million pounds, just to cover its debt, erasing the equity value.

Lazard is advising Esporta.

Adapted from Elena Moya
This article: http://business.scotsman.com/latest.cfm?id=1298012007

Bannatyne Fitness Acquires Living Well UK News…..

By Ryan on August 6th, 2007

On August 9th 2006, Bannatyne Fitness Ltd acquired the LivingWell Premier Health club chain from the Hilton Hotel UK Group, taking the Bannatynes Health club chain to over 60 locations.

Bally Total Fitness files for Ch. 11

By Ryan on August 3rd, 2007

Bally Total Fitness, one of the country’s largest fitness chains, filed a plan late Tuesday in U.S. Bankruptcy Court for the Southern District of New York. The plan would reduce its debt by $150 million and bring in $90 million in new capital for investing in some of its 375 clubs nationwide.
Company officials said the bankruptcy protection filing would not affect operations at the clubs.

“This is a positive step to ensure Bally’s future success,” said Don Kornstein, Bally Total Fitness interim chairman. “Members, employees and vendors will not be adversely impacted.”

According to its 2006 annual report, Bally’s membership declined every quarter last year on an annual basis, as well as the first quarter of 2007. The company reported a loss of $107.6 million in fiscal year 2006, ended Dec. 31.

Bally Total Fitness was a major player in fitness centers , but in recent years has faced competition from other well established clubs and new comers to the market. 

Goodlife Health Clubs Set to grow even bigger

By Ryan on August 1st, 2007

Macquarie Leisure is set to become major player in health and fitness market.   Macquarie Leisure Trust Group (ASX:MLE) announced on the 31st July 07 the acquisition of the Goodlife Health Club chain (“Goodlife”) of 18 established fitness centres in Australia for A$60 million.

Established in 1998, the Goodlife chain is the dominant branded fitness chain in Queensland with 13 sites and has successfully expanded its operations into Victoria with four sites and New South Wales with one site. Three further sites are in the planning stage with another established site under a call option.

The acquisition is expected to deliver significant earnings accretion of 3 - 5 per cent and distribution accretion of 8 -10 per cent in the 2009 financial year.1

Macquarie Leisure’s chairman Mr Neil Balnaves said: “We are delighted with the acquisition of Goodlife as it is an ideal platform for Macquarie Leisure to become a major player in the Australian health and fitness market.”

Goodlife comprises an established portfolio of medium to large clubs with a strong membership base and modern facilities on competitive long-term leases with an average lease term in excess of 15 years. The chain’s position is further strengthened by an experienced and proven management team who will retain an equity interest and will be incentivised to drive future expansion through a long term performance incentive.

Group CEO, Mr Greg Shaw said: “The transaction was particularly compelling to Macquarie Leisure, not only for the strength of the existing operations and current roll-out program but also because of the operating synergies and site acquisition opportunities that could be delivered through the Macquarie Leisure and broader Macquarie Real Estate portfolio.  We have a number of immediate opportunities for fitness facilities to enhance returns from existing bowling sites, to cross promote to the AMF Bowling and Dreamworld staff and customer base and to negotiate more competitive purchasing agreements”.

The Australian fitness industry continues to enjoy strong growth through positive fundamentals including:

increased consumer interest in pro-active health management and weight loss; government and health industry initiatives to promote healthy lifestyles; greater interest in fitness from an ageing population;
rising disposable incomes and increased spending on leisure and lifestyle; and, global consolidation of the industry with branded chains enjoying above average market growth with higher quality and more profitable facilities.
“We see significant opportunities to expand the portfolio in Australia’s metropolitan markets over the next three years particularly as health club ownership in Australia is highly fragmented and market penetration of approximately 9 per cent is well below that of other developed countries at approximately 15 per cent.  In the medium term, Asia is also likely to provide strong growth opportunities with penetration rates of below one per cent and an emerging middle class with high levels of disposable income available for leisure activities,” Mr Shaw added.

The acquisition is intended to be funded through an appropriate combination of debt and equity. In the short term the transaction will be completed utilising existing debt capacity within current facility limits.  The transaction is subject to assignment of property leases which is expected to occur within six weeks.

1Assumes 70 per cent equity funding and 30 per cent debt funding and no additional developments beyond those currently identified.

Macquarie Leisure Trust Group is a stapled entity with assets under management of more than A$600 million. The Group owns and operates world class leisure assets including Dreamworld, WhiteWater World, d’Albora Marinas, AMF Bowling and Main Event.   More than A$23 billion of real estate assets are managed by Macquarie Real Estate and its associates, across a portfolio of listed and unlisted property trusts, unlisted development funds and property investment syndicates, globally.

For further information, please contact 1300 365 585 or propfunds@macquarie.com

Due care and attention has been exercised in the preparation of forecast information, however, forecasts, by their very nature, are subject to uncertainty and contingencies, many of which are outside the control of MLML. Actual results may vary from any forecasts and any variation may be materially positive or negative. Source:  http://www.macquarie.com.au/au/property/mle/news/20070731.htm

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This information has been prepared by Macquarie Leisure Management Limited ABN 36 079 630 676 (MLML) for general information purposes only, without taking into account any potential investors’ personal objectives, financial situation or needs. Before investing, you should consider your own objectives, financial situation and needs or you should obtain financial, legal and/or taxation advice.

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Mixed reviews on home gyms….I agree.

By Ryan on July 31st, 2007

Hi,

Just read this current article today and believe it was a good talking point.  I have a rough outline of the points and my response at the end and I’m interested in seeing how others may think.  Feel welcome to respond. 

People who want a private workout whenever they choose are bypassing the health club and bringing the gym into their homes. They’re carving out a personalized fitness space for the same exercise programs offered at a lavish outside facility.

Real-estate developers and builders say homeowners increasingly are choosing to build in-home gyms as a must-have amenity, mainly to get and stay fit, but also to pump up the curb appeal of their property.

Roughly one-third of new and potential homebuyers cite a home exercise room as either essential or desirable, according to the National Association of Home Builders, a Washington, D.C.-based industry trade group.

“The home gym is one of the top amenities that homeowners want to incorporate into their homes,” said Gabe Pasquale, vice president and chief marketing officer of WCI Communities’ Northeast region based in Valhalla, N.Y.
© 2007, The Associated Press. All Rights Reserved

If I purchase a 12 month membership that may have only 4 months left, what happens after the 12 month contract is completed?

By Ryan on July 23rd, 2007

This a very good question….Once the original contract is completed, the membership taken over is then on a month to month basis (although please verify this with the club).

This is one of the most commonly asked Questions. Why did you set up the site?

By Ryan on July 12th, 2007

I’ve worked in the fitness industry for over 6 years now in both a sales position and training position. During this time I’ve been lucky to train and work with many avid fitness junkies who love to use their gym memberships on a daily basis but I’ve also encountered two groups of consumers that aren’t adequately catered for with annual gym memberships. The first group of consumers are those people that for a variety of reasons are unable to fulfil the length of their contract with their gym or health club. The second group of people wish to attend a gym but don’t wish to subscribe to an annual gym membership because of their personal situation (e.g.- they may be working at a certain location for a period under 12 months or they may be unsure of whether the gym is suited to their needs) . Transfermymembership.com was set up to link consumers wishing to trade unwanted gym memberships with consumers who wish to subscribe to a gym in a more flexible manner than an annual gym membership provides.

Transfermymembership.com, however, is not only a service for the consumer- it also provides a powerful tool to health clubs enhancing their ability to attract members whose future is uncertain. Having worked in sales in gyms, I know first hand how difficult it can be to sell yearly memberships to patrons who are concerned about being locked into an annual contract so transfermymembership.com can be used to reduce consumer’s uncertainty. I believe everyone should be enjoying the gym or some form of physical activity. The many benefits that regular ecercise brings physically, mentally (stress relief) and socially so what are you waiting for……