About David Lloyd Leisure

About us

David Lloyd Leisure is Europe’s leading premium health, fitness and wellness group. It operates [133] Clubs across [9] countries in the UK and Europe, with [103] Clubs in the UK and ROI and a further [30] Clubs across mainland Europe. David Lloyd Leisure is comprised of three brands: David Lloyd Clubs, Harbour Clubs and David Lloyd Meridian Spa and Fitness in Germany.

David Lloyd Leisure offers a unique, family-orientated, premium offering with facilities across the full range of health, fitness and wellness. Facilities include state-of-the-art gyms, heated indoor and outdoor pools, top-class racquets facilities, well-equipped group exercise studios and spa facilities. David Lloyd Leisure has over [734,000] members and currently employs over 8,000 people, including leading experts in fitness, racquet sports and swimming.

The Group is backed by a well invested portfolio of property assets. The portfolio is irreplaceable, with sites in premium, typically sub-urban locations, and provides a high barrier to new entrants. The UK property portfolio is valued in excess of £[700]m. The existing estate is maintained to a high standard, with the Group [recently] completing a successful [UK wide] programme of refurbishment and Club upgrades, ensuring members benefit from best-in-class facilities at each location. The Group is committed to a continuous programme of innovation and evolution, such as the roll out of Spa Retreats and the development of a digital platform, supported by an ongoing programme of investment and a track record of consistently strong ROI. Over £[270]m has been invested into refurbishing and transforming the Clubs over the last [10] years, with the continuous investment further enhancing barriers to entry to potential new competitors.

David Lloyd Leisure benefits from a demographically diverse, affluent and loyal membership base. A significant proportion, [66]%, of the membership base is comprised of couples and families, meaning that the Clubs become a central part of family life, in line with the Group’s vision of being “My Club for Life”, as opposed to simply a place to exercise. David Lloyd’s commitment to providing a premium member experience with an unrivalled breadth and quality of facilities, is reflected in market leading membership experience scores, industry low churn levels and an average tenure of [7] years. The sticky membership base has resulted in consistent growth in high quality recurring subscription revenues, driven by growth in member numbers and steady increases member yield. Personalisation of the member experience is expected to further increase member satisfaction with the expansion of the digital platform and member App driving increased member engagement.

David Lloyd Leisure is uniquely positioned in a structurally attractive, growth market. Consumers are increasingly prioritising health and wellness alongside “experiential” spend. The offering is highly differentiated, with no scale competitor having a comparable offer in terms of breadth and quality of facilities and services. There are significant barriers to entry to the market, including David Lloyd Leisure’s incumbency in prime locations, time, capital requirements and operational know-how.

Track record and future strategy

The Group has a strong track record of growth, both organic through new club openings and premiumisation, and also through acquisition. Notwithstanding the success to date, the Group remains ambitious in terms of the future growth strategy and has identified substantial growth opportunities, including expansion into Continental Europe through selective acquisition. Group expansion is measured through the number of new Clubs opened, with a target in place to open four new Clubs per year. The Group has a strong, qualified, pipeline of sites that underpin the mid-term roll-out programme and has carried out extensive analysis to identify white space in target towns and cities, generating 50 potential catchment areas in the UK and over 150 in Continental Europe. The Group remains well on track to achieve its target of 150 Clubs by 2027.

In addition to Group expansion, the programme of premiumisation will continue, alongside further innovation and development of the offer, including new facilities, continuation of the Spa Retreat roll out and further personalisation of the member experience through development of the digital member platform.

The Group is well funded and the future growth opportunity is underpinned by the Group’s strong balance sheet. Profits are reinvested back into the Clubs and the business is highly cash generative, with strong operating cash flows and cash conversion, driven by top line growth and a disciplined approach to cost management.

History

David Lloyd Leisure was founded in 1982 by former professional tennis player David Lloyd, who sought to create high-quality fitness destinations suitable for the whole family. He recognised that the UK had very few indoor sport and leisure facilities, so created a pioneering concept of combining fitness and tennis in a family-friendly environment.

The first club opened in Heston [in 1982] and is still open and operating today. By 1995 there were 18 clubs in the UK, at which point the business was acquired by Whitbread. Most recently, David Lloyd Leisure was acquired by private equity firm TDR in 2013 from UK based property company London & Regional and Caird Capital LLP. Following a period of significant capital investment by TDR, the total number of Clubs has increased from 90 at the time of acquisition in 2013 to [133] today. Growth in the size of the estate has been achieved through a new site development programme in the UK alongside the acquisition of small portfolios of Clubs and standalone sites in Europe. As a result of the expansion and investment in the range and style of facilities available, as well as investment in all aspects of the member experience, David Lloyd Leisure is now a market leader in premium family leisure.

Our values

David Lloyd Leisure has been helping families lead healthy and active lives for more than 40 years and the leadership team recognises the importance of the Group’s role and responsibility in contributing to a healthy society and a sustainable environment.

The Group’s commitment to Environmental Social and Governance (ESG) principles underpin the entire business strategy, with significant steps taken to ensure market leadership in this area.