Private Health Clubs - Cost model, September 1998

The health and fitness boom

Two million adults in the UK are members of private sector health clubs. With national operators taking an increasing share of the market, there is a trend towards larger, better-equipped clubs, appealing to a broader market concerned with ‘wellness’ rather than hard physical exercise. This article examines the design and costs of purpose-built, private sector health and fitness clubs.

Past cost models have examined large- and small-scale public sector sports and recreation facilities, reviewing large-scale wet and dry centres (5 May 1995) and small-scale dry centres (10 July 1998). Following the opening of the first indoor tennis and leisure centres, the past 15 years have seen a revolution in the health and fitness sector. The shift in emphasis from sport to leisure, and from ‘sweat shop’ gyms to bright, user-friendly health clubs has seen the sector grow to generate annual revenues in excess of £1bn.

Some 2200 private sector clubs now serve two million members - one-tenth of the adult working population. Although total club membership has increased by 25% over the past five years the number of clubs has increased by only 12%, reflecting the growing penetration of large-scale, national operators into a sector previously characterised by smaller, independent gymnasia, squash and tennis clubs.

The entry of major leisure corporations such as Whitbread and Stakis and the public flotation of established operators shows the growth of corporate interest in the sector. Research by agents William Hillary Leisure and Hotels indicates that more than 80 clubs will be opened by major national operators in 1998. By the end of 2000, it is anticipated that a further 85 clubs will open - an increase of 34% in those run by national operators. Causes of these high growth rates include the economic feel-good factor, increasing health-consciousness, and the high marketing profile of major operators.

Forecasts for the expansion of the sector remain bullish, but depend on continuing prosperity elsewhere in the economy. It is claimed that one in three British adults aspire to being health club members, and forecaster Mintel predicts that the sector will be worth £1.25bn by 2001. Customer groups demanding continuing expansion include:

*Women, particularly mothers, who choose to exercise in social surroundings. Targeted, off-peak exercise programmes and crèche facilities are key elements necessary to attract this market. Women make up 65% of the membership of health and fitness clubs

*Over-55s, an increasingly large and relatively affluent demographic group worth plenty of leisure time. Health spa facilities are particular popular for a market interested in regular, low-impact exercise and relaxation activities.

Both of these markets are particularly important in connection with the expansion of off-peak club usage, which helps to support staff numbers, but which does not increase demand during the peak hours of 6.30 - 8.30pm.

*The ‘deconditioned’, some 50% of UK adults are classified as either overweight or obese. An increasingly popular emphasis on healthy living is encouraging greater use of health and fitness facilities. Clubs are also seen as social venues. The growth in this market will lead to further demand for aerobic exercise and relaxation facilities.

As a general trend, the increasing importance of the health market, with its focus on ‘wellness’, will have the effect of broadening the appeal of health and fitness centres to the huge potential market of the ‘unfit and unfashionable’.

In addition to the stand-alone clubs that are increasingly common in town centres and edge-of-town locations, there are opportunities for operators to provide facilities in hotels and, to a lesser extent, within office developments. An additional opportunity is shortly to emerge through the provision of gym and health spa facilities to lottery-funded Healthy Living Centres, a primary healthcare initiative that will initially receive £300m from the New Opportunities lottery fund.

Development economics

Health and fitness clubs compete with other leisure and commercial uses for development sites. Preferred locations for clubs are town centres and the edges of towns. Convenience and accessibility are crucial selling points. Locations with frontages onto main roads are preferred.Commercial health and fitness centres typically require a minimum target population of 200 000 living within a 15-minute journey time, ideally with a high (50%+) proportion of ABC consumers. The size of a development is determined by the number of pools provided, the presence of crèche and soft-play facilities, and the size of 500m2 or more.

Out-of-town car parking is essential, as typically fewer than 5% of members rely on public transport. A 4000m2 unit will need 250-300 car parking spaces to meet peak demand, necessitating a site of 1.2-2 ha. Co-location on business, retail and leisure parks reduces dedicated parking needs.

City-centre units tend to be smaller - 950-2500m2 - and do not require dedicated parking. In addition to high street locations, town centre sites have also included shopping centres. The conversion of older buildings with large internal volumes is also a popular development option. Development of health and fitness facilities in three- and four-star hotels has featured in recent investment programmes aimed at improving service quality.

Facilities are aimed at guests, external members and at securing conference business. The club size is limited to 450-800m2, with about 800-1000 members. Wet areas and the leisure component have greatest prominence. Gym equipment should be compact and should require minimal supervision.

Indoor tennis, sports and leisure clubs are a further discrete market sector. The size of racquet clubs can exceed 9500m2, depending on the number of indoor courts, occupying sites of 2.4-2.8 ha. Demand has fallen during the 1990s, with the majority of club members (70%+) using gymnasium facilities rather than the courts. Racquet sports are a more social activity than training, so, compared with other clubs, bar and restaurant revenues are a significant source of income.

Essential components

Health and fitness club members have a wide range of training and social objectives. The development of larger clubs has resulted in a wider range of users being accommodated within a single facility. Most general fitness training, exercise and relaxation activities are compatible, but it is necessary in some cases to provide additional facilities - for example, leisure and training pools or women-only gyms - to meet the specific needs of a target market. Although most revenue is generated through membership fees, it is also necessary to provide accommodation for income generators such as shops, bars, health and beauty treatments and crèches.

The essential components of a health and fitness club include:

*Reception
First impressions of a club are an important marketing issue. The design of the reception area also contributes to standards of customer care and security. Major activity areas should be visible from reception, but public and activity spaces should be segregated.

*Pools
Leisure and training uses are generally incompatible. Increasingly, two pools are provided in the larger clubs. A pool is recognised as an indicator of quality, and is important to attract membership. Training pools are increasingly popular. Generally, swimming pools are not used intensively, but can generate additional revenue from swimming and aquaerobics classes.

*Gymnasium
These should be flexible to accommodate layout changes and different gym equipment. Recent developments in equipment include cardio theatre, group cycling training and networked, computerised gym machines. Visual links between gyms and other activity spaces are a popular design feature, emphasising spectacle and the fun elements of exercise to minimise boredom.

*Dance studios
These need to cater for a range of classes. Top-quality clubs provide studios with dedicated environmental controls to provide ideal conditions for different classes. The control of noise is another important issue.

*Health spa facilities
These meet the growing demand for relaxation facilities. Traditional sauna and steam rooms are being supplemented by warm-air baths, ceramic steam baths and other novelty installations. Health spas, the most important part of a hotel health and fitness facility, are key to the over-55s market.

*Changing accommodation
Capacity, particularly of showers and lockers, should not constrain gym use at peak times.

*Other accommodation
Requirements include: fitness assessment space; treatment and sun-bed rooms; crèches and softplay facilities; room for franchise outlets (bars, health and beauty treatments, etc); and staff accommodation.

Building-in-use considerations

Energy use
Sports and leisure buildings are high-energy consumers, primarily because of the heating and ventilating loads generated by swimming pools. Although no information specifically related to private sector health and fitness energy use is available, consumption data published by the Sports Council provides an indicative comparison of commercial and leisure building energy use.

Maintenance and reliability
Continuing investment in maintenance and cleaning of health and fitness centres is vital, as the quality of the environment and service and the availability of facilities can generate complaints from members. The design stage should address:

*Changing areas Lockers, showers and sanitary fittings need to be specified to ensure longevity. Wet and dry areas must be separated to protect dry area finishes. The quality of workmanship in changing areas requires particular attention.

*Noise and vibration Sources of noise and vibration breakout include gyms, dance studios and plant areas. Crèches, treatment rooms and administration offices need additional insulation.

*Maintenance and access Access to overhead services, particularly in pool areas, must be considered. Suspended features such as banners should be demountable for regular cleaning.

* Stainless steel in swimming pool areas Common grades of stainless steel such as 316, specified for pool equipment, building structure and services, can severely corrode in warm, humid environments. Brackets and supports for ductwork, light fittings, suspended ceilings and maintenance platforms are vulnerable. Use of highly alloyed stainless steel (317LMN or 904L) and regular inspection of concealed components will minimise risks.

Design issues

Health and fitness centres accommodate a range of functions, with widely different spatial and environmental characteristics. Large spaces such as gyms, pools and changing areas are most efficiently planned on large, regular floorplates.

The achievement of a successful balance between physical and visual integration and segregation of different functions is a key design issue, as is a coherent style and design image appropriate to the target market. The integration of many specialist installations results in complex environmental services and places a premium on the co-ordination of design and construction, with effective ventilation and drainage being critical.

Design of specialist spaces
Fitness gyms In large health and fitness centres, these can exceed 1000m2 on plan. Sightlines, supervision, quality of finishes and ease of cleaning are critical design elements. Allowances of 5m2 per exercise station are typical, with a 1m circulation zone around equipment. The ideal layout is rectangular, with the length-to-width ratio not above 3:1. Ceiling heights need to exceed 3m to avoid stuffiness and can often accommodate further equipment on mezzanine floors. Floor loadings need to be high (typically 5kN/m2+), as machines weigh more than 500kg. Platforms and split levels should be avoided to minimise injury risks. Floor finishes must be non-slip, high-traction and non-brittle for safety and impact resistance. Heavy-duty carpet tiles are common. Underfloor voids are often specified to give space for cabling.

Dance studios These are ideally designed as a square or 3:2 rectangle. Walls should be free of projections, and are typically finished in full-height, composite safety mirrors. Control of noise and vibration breakout from a dance studio is important, particularly if the studio is on an upper floor. Vibration can be a problem and floor slabs should e designed in accordance with BS6472. The sprung dance floor surface should be light maple or beech, suitable for both wet and dry cleaning regimes. Environmental controls need to be flexible and have a fast response time to provide suitable conditions for different classes. A dimmable light system is also useful to alter room atmosphere. Hi-fi systems should be wall-mounted.

Pools Training and leisure uses are incompatible in terms of pool design and water and air temperature. The minimum acceptable length for a training pool is 17m, but 25m is preferred. Water temperatures for training pools are set at 26-27°C; leisure pools can be up to 32°C. Corresponding pool hall temperatures are typically set 1°C above pool temperature. Constant-depth pools are typically specified for training and leisure uses - depths range from 1.2 to 1.35m.

Pool design and installation is highly complex and is undertaken by specialists. However, the integration of a pool into the fabric of a health and fitness centre raises additional design and co-ordination issues. Common design problems include condensation on glazed surfaces and the control of glare and spectral reflections on the water surface that result from extensive use of external glazing. Safety issues include safe poolside circulation adjacent to deep water, the avoidance of projecting features on wet areas, effective drainage and reliable non-slip surfaces.

Running costs can be reduced by measures such as pool covers and heat reclaim. Maintenance is a particular problem in pool areas because of the aggressive chemical environment. Regular maintenance is vital and consideration should include access to any high-level features suspended within the pool area.

Environmental services Within health and fitness centres these must maintain a range of environmental conditions for differing activities. Typically, an extensive environmental services installation is needed. The table above summarises typical environmental design criteria for functional areas in health and fitness clubs.

Procurement

The choice of procurement route for health and fitness centres is governed by factors such as fast construction, tight cost control and an immovable opening date. On many projects, there is insufficient time to allow traditional procurement methods based on sequential design, procurement and construction, so design-and-build procurement is widely adopted.

Health and fitness club projects are complex, involving the input of many specialist contractors.

The degree of integration and co-ordination of design and construction that can be achieved with design and build can make a significant contribution to a successful project. Additionally, design and build’s feature of single-point responsibility is valuable to clients when backed up by appropriate indemnity insurance.

Guaranteeing the quality of construction is an important issue, and, with design and build, the employer’s requirements will typically specify very detailed finishes and equipment in order to maintain a consistent image and to establish levels of quality and durability that reduce maintenance costs.

This is particularly relevant to the selection of ironmongery and sanitary facilities, which incur heavy usage, and to the specification of floor and wall finishes to heavily trafficked and wet areas.

The model

The cost model is a 3700m2 health and fitness club located on an out-of-town site. The development features a 25m training pool, 1250m2 of gymnasium space and an aerobic studio. Ancillary accommodation includes extensive changing and health spa areas, a crèche, bar and shop. Of the gross floor area of the development, some 2830m2, or 76% is usable floor area.

The specification features high-quality finishes to all public areas. Mechanical services installations include dedicated air-handling systems to the pool, gym, aerobics room, changing and administration areas.

Costs are current in August 1998 based on a location in the South-east. The level of pricing assumes a design-and-build procurement route, with competitive tenders obtained on the basis of a detailed set of employer’s requirements. Adjustment should be made to the costs detailed in the model to account for variations in specification, site conditions, procurement route, programme and market conditions. The costs of gym equipment, sound and television systems are excluded.