New owners plan US$136 million Fitness First expansion in the Middle East

The Dubai-based Landmark Group plans to spend as much as US$136 million expanding its Fitness First chain of gyms across the Middle East.

Landmark, which bought up the regional rights for the UK-based chain of fitness centres last year, plans to open 100 new branches over five years, including 50 in Saudi Arabia and 35 in the United Arab Emirates.

Talking to local media, Fitness First Middle East Chief Operating Officer George Flooks recently explained "we've got 13 clubs in the UAE at the moment and we've got big plans for Abu Dhabi, (and in) Sharjah we're looking at all of the other emirate states to open clubs.

"Over a five year period we will look to get ourselves to 35 clubs in the UAE (while) the broader strategy is 100 clubs in five years across the Middle East."

Landmark acquired the Fitness First franchise for to 21 countries in the Middle East after purchasing a subsidiary of Saudi leisure company Al Hokair Group last year.

The 100% buyout of Leisure Unlimited, the previous franchisee, was carried out by the group's investment arm, Landmark Investments. Under the terms of the deal, Landmark absorbed all Fitness First assets and employees in the Middle East.

Sources close to the deal said Leisure Unlimited had been starved of funding, putting pressure on its growing gym business.

Landmark, which also manages retail chains such as New Look, Centrepoint and Splash, has spent millions of dirhams on upgrading existing facilities and introducing new fitness classes such as Zumba in a bid to boost membership.

Fitness First Middle East currently has 35,000 members and has seen its membership increase by 5,000 in the last seven months, Flooks explained, adding "we're currently sitting on about 35,000 members.

"We've shown considerable growth in membership since April - we've probably grown by 5,000 members."

Flooks added that Landmark will look to spend a minimum of US$800,000 on upgrading each club and hopes to sign up 3,000 members per gym.

Founded in 1973 in Bahrain, the Landmark Group has evolved into one of the largest and most successful retail and leisure organisations in the Middle East.

The Group operates over 1,000 retail outlets, employs around 35,000 people and has an annual turnover of US$3.8 billion. 

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