As of Mar 31, 2017, the company operated 149 fitness clubs in 9 states in the US and 3 fitness clubs in Switzerland. The fitness clubs in the US are comprised of 101 clubs in the New York metropolitan market, 28 clubs in the Boston market, 12 clubs (1 of which is partly-owned) in the Washington, D.C. market, and 5 clubs in the Philadelphia market.
In fiscal 2016, the company opened 1 new fitness club and closed 5 underperforming clubs. During the first quarter of fiscal 2017, the company opened 1 fitness club and closed 2 fitness clubs.
Substantially all the company's fitness clubs are leased. Lease terms are generally 15-20 years and contain renewal options, with terms for rental increases based on the consumer price index, fair market rates or stated renewal terms already set in the lease agreements.
Clubs are generally located in middle- or upper-income residential, commercial, urban and suburban neighborhoods within major metropolitan areas that are capable of supporting the development of a cluster of clubs. Approximately 65% of clubs are fitness-only clubs and the remaining clubs are multi-recreational. Fitness-only clubs average approximately 20,000 square feet, while multi-recreational clubs average approximately 38,000 square feet. The aggregate average size of the fitness clubs is approximately 27,000 square feet.
|Total gross square feet (M)||3,843||3,869||4,058||4,119||4,212||4,108|
|Total gross square feet growth||-2.9%||-4.7%||-1.5%||-2.2%||2.5%||0.0%|
|Avg store gross sq ft||25,800||25,800||26,200||25,900||26,000||26,000|
|Avg store gross sq ft growth||0.4%||-1.5%||1.1%||-0.4%||0.0%||0.0%|