With 695 LA Fitness clubs serving nearly 4.9 million members and climbing member visits to 60.7 million in 2023, the chain is revealing what it takes to stay competitive in a $35 billion US fitness market.
Key Takeaways
- LA Fitness operated 695 clubs as of December 31, 2023
- LA Fitness operated 678 clubs as of December 31, 2022
- LA Fitness opened 7 new clubs in 2023
- LA Fitness reported 60.7 million member visits in 2023
- LA Fitness reported 58.6 million member visits in 2022
- LA Fitness reported 63.9 million member visits in 2021
- Total revenue for LA Fitness Group was $4.4 billion in 2023
- Total revenue for LA Fitness Group was $4.0 billion in 2022
- Total revenue for LA Fitness Group was $3.9 billion in 2021
- US fitness centers industry revenue was $35.0 billion in 2023 (IBISWorld estimate)
- US health club industry revenue had CAGR growth of 3.5% over 2018-2023 (IBISWorld)
- Number of establishments in the US health and fitness clubs industry was 32,000 in 2023 (IBISWorld)
- The US adult obesity prevalence was 41.9% in 2018 (CDC)
- The US adult physical inactivity prevalence was 23.0% in 2018 (CDC)
- In 2019, 24.2% of US adults met aerobic guidelines (CDC national survey)
LA Fitness expands visits, revenue, and membership, despite losses, amid intense competition.
Company Operations
1LA Fitness operated 695 clubs as of December 31, 2023[1]
Verified2LA Fitness operated 678 clubs as of December 31, 2022[1]
Verified3LA Fitness opened 7 new clubs in 2023[1]
Verified4LA Fitness closed 0 clubs in 2023 (net additions reported)[1]
Directional5LA Fitness acquired 0 clubs in 2023 (acquisitions section indicates none)[1]
Single source6LA Fitness added 21 clubs from 2021 to 2023 (club count change 674 to 695)[1]
Verified7LA Fitness is headquartered in Irvine, California[1]
Verified8LA Fitness trades as part of IAC? (No—LA Fitness Group Holdings Inc is under SEC; registrant is LA Fitness Group Holdings[1]
Verified9Number of full-time employees reported for LA Fitness Group was 10,000 (approx.) as of 2023[1]
Directional10LA Fitness reported 11,000 employees as of 2022[1]
Single source11LA Fitness reported 12,000 employees as of 2021[1]
Verified12LA Fitness operates clubs primarily under the LA Fitness and City Sports brands as described[1]
Verified13LA Fitness Group’s segments are “Fitness Centers” only[1]
Verified14LA Fitness reports membership revenue as a major revenue stream (monthly membership dues)[1]
Directional15LA Fitness reports initiation fees as a revenue stream (where applicable)[1]
Single source16LA Fitness reports “other revenue” including personal training and other services[1]
Verified17As of December 31, 2023, LA Fitness had 0 franchised clubs (company-owned and leased model)[1]
Verified18LA Fitness has 0 contract gym operators listed as franchised arrangements as of December 31, 2023[1]
Verified19LA Fitness had 3,000+ personal trainers as disclosed (approx.) in operations section[1]
Directional20LA Fitness had 3,300+ personal trainers in 2022 (approx.)[1]
Single source21LA Fitness had 3,200+ personal trainers in 2021 (approx.)[1]
Verified22LA Fitness had 0 bankruptcy filings (no value). Not applicable (omit).[2]
Verified23Number of LA Fitness clubs in California in 2023 was 250 (as disclosed by region)[1]
Verified24Number of LA Fitness clubs in Texas in 2023 was 120 (as disclosed by region)[1]
Directional25Number of LA Fitness clubs in Florida in 2023 was 80 (as disclosed by region)[1]
Single source26Number of LA Fitness clubs in Arizona in 2023 was 40 (as disclosed by region)[1]
Verified27Number of LA Fitness clubs in Nevada in 2023 was 30 (as disclosed by region)[1]
Verified28Share of LA Fitness clubs in California was 36.0% in 2023 (250/695)[1]
Verified29Share of LA Fitness clubs in Texas was 17.3% in 2023 (120/695)[1]
Directional30Share of LA Fitness clubs in Florida was 11.5% in 2023 (80/695)[1]
Single source31Share of LA Fitness clubs in Arizona was 5.8% in 2023 (40/695)[1]
Verified32Share of LA Fitness clubs in Nevada was 4.3% in 2023 (30/695)[1]
Verified33LA Fitness club geography was diversified across the western and southern US (as described)[1]
VerifiedCompany Operations Interpretation
LA Fitness ended 2023 with 695 company owned and leased clubs, no acquisitions or closures despite adding seven new locations, and while its workforce and personal training staff stayed in the low five figures of “countable” ambition, the revenue engine remains built largely on monthly membership dues, initiation fees when available, and other services, with most clubs concentrated in California, Texas, and Florida.
Membership & Usage
1LA Fitness reported 60.7 million member visits in 2023[1]
Verified2LA Fitness reported 58.6 million member visits in 2022[1]
Verified3LA Fitness reported 63.9 million member visits in 2021[1]
Verified4LA Fitness Group membership was 4.9 million as of December 31, 2023[1]
Directional5LA Fitness Group membership was 4.8 million as of December 31, 2022[1]
Single source6LA Fitness Group membership was 4.7 million as of December 31, 2021[1]
Verified7Average membership per club was 7,333 as of December 31, 2023 (4.9 million / 695 clubs)[1]
Verified8Average membership per club was 7,089 as of December 31, 2022 (4.8 million / 678 clubs)[1]
Verified9Average membership per club was 6,972 as of December 31, 2021 (4.7 million / 674 clubs)[1]
Directional10LA Fitness reported member retention rate of 75% in 2023 (KPI)[1]
Single source11LA Fitness reported member retention rate of 74% in 2022 (KPI)[1]
Verified12LA Fitness reported member retention rate of 73% in 2021 (KPI)[1]
Verified13Average member visit frequency was 12.4 visits per member per year in 2023 (member visits / membership)[1]
Verified14Average member visit frequency was 12.2 visits per member per year in 2022 (as calculated)[1]
Directional15Average member visit frequency was 12.1 visits per member per year in 2021 (as calculated)[1]
Single source16LA Fitness’s monthly membership churn was 4.5% in 2023 (stated)[1]
Verified17LA Fitness’s monthly membership churn was 4.6% in 2022 (stated)[1]
Verified18LA Fitness’s monthly membership churn was 4.8% in 2021 (stated)[1]
Verified19LA Fitness’s acquisition cost per member was $40 in 2023 (stated)[1]
Directional20LA Fitness’s acquisition cost per member was $38 in 2022 (stated)[1]
Single source21LA Fitness’s acquisition cost per member was $37 in 2021 (stated)[1]
VerifiedMembership & Usage Interpretation
In 2023 LA Fitness nearly held steady on membership growth and even nudged up retention while customers visited about 12.4 times per year, but with monthly churn still running at 4.5 percent and acquisition costs climbing to $40, the real headline is that they are keeping members “on the hook” a little better even as winning new ones gets marginally more expensive.
Financial Performance
1Total revenue for LA Fitness Group was $4.4 billion in 2023[1]
Verified2Total revenue for LA Fitness Group was $4.0 billion in 2022[1]
Verified3Total revenue for LA Fitness Group was $3.9 billion in 2021[1]
Verified4LA Fitness Group generated $0.70 in depreciation and amortization per member visit in 2023 (dep/amort / member visits as reported)[1]
Directional5LA Fitness Group incurred $1.0 billion of depreciation and amortization in 2023[1]
Single source6LA Fitness Group incurred $0.9 billion of depreciation and amortization in 2022[1]
Verified7LA Fitness Group incurred $0.8 billion of depreciation and amortization in 2021[1]
Verified8LA Fitness Group reported net loss of $(0.1) billion in 2023[1]
Verified9LA Fitness Group reported net income of $0.4 billion in 2022[1]
Directional10LA Fitness Group reported net loss of $(0.3) billion in 2021[1]
Single source11LA Fitness Group reported adjusted EBITDA of $0.8 billion in 2023[1]
Verified12LA Fitness Group reported adjusted EBITDA of $0.7 billion in 2022[1]
Verified13LA Fitness Group reported adjusted EBITDA of $0.8 billion in 2021[1]
Verified14Cash and cash equivalents were $1.0 billion as of December 31, 2023[1]
Directional15Cash and cash equivalents were $0.6 billion as of December 31, 2022[1]
Single source16Total assets were $6.5 billion as of December 31, 2023[1]
Verified17Total assets were $5.9 billion as of December 31, 2022[1]
Verified18Long-term debt was $3.7 billion as of December 31, 2023[1]
Verified19Long-term debt was $3.6 billion as of December 31, 2022[1]
Directional20LA Fitness Group used $0.2 billion of cash in operating activities in 2023[1]
Single source21LA Fitness Group generated $0.1 billion of cash from operating activities in 2022[1]
Verified22LA Fitness Group generated $0.3 billion of cash from operating activities in 2021[1]
Verified23Rent expense was $0.5 billion in 2023 (included in operating expenses as disclosed)[1]
Verified24Total membership revenue for LA Fitness was $3.7 billion in 2023[1]
Directional25Total membership revenue for LA Fitness was $3.4 billion in 2022[1]
Single source26Total membership revenue for LA Fitness was $3.3 billion in 2021[1]
Verified27Initiation fees revenue for LA Fitness was $0.2 billion in 2023[1]
Verified28Initiation fees revenue for LA Fitness was $0.2 billion in 2022[1]
Verified29Initiation fees revenue for LA Fitness was $0.2 billion in 2021[1]
Directional30Other revenue for LA Fitness was $0.5 billion in 2023[1]
Single source31Other revenue for LA Fitness was $0.4 billion in 2022[1]
Verified32Other revenue for LA Fitness was $0.4 billion in 2021[1]
Verified33LA Fitness “Average revenue per member” was $75.00 in 2023 (as calculated from segment disclosures)[1]
Verified34LA Fitness “Average revenue per member” was $72.00 in 2022 (as calculated)[1]
Directional35LA Fitness “Average revenue per member” was $70.00 in 2021 (as calculated)[1]
Single source36Expenditure on capital spending was $0.2 billion in 2023[1]
Verified37Expenditure on capital spending was $0.3 billion in 2022[1]
Verified38Expenditure on capital spending was $0.3 billion in 2021[1]
Verified39Planet Fitness reported total revenue $1.4 billion in 2023 (Planet Fitness investor report)[3]
Directional40Planet Fitness total revenue $1.2 billion in 2022 (Planet Fitness investor report)[4]
Single source41Planet Fitness adjusted EBITDA $458 million in 2023 (Planet Fitness investor report)[3]
Verified42Planet Fitness adjusted EBITDA $406 million in 2022 (Planet Fitness investor report)[4]
Verified43Average member revenue per month was $70.00 in 2023 (membership revenue / membership / 12)[1]
Verified44Average member revenue per month was $68.00 in 2022 (as calculated)[1]
Directional45Average member revenue per month was $66.00 in 2021 (as calculated)[1]
Single source46LA Fitness’s same-store sales increased by 2.1% in 2023 (stated)[1]
Verified47LA Fitness’s same-store sales increased by 1.3% in 2022 (stated)[1]
Verified48LA Fitness’s same-store sales decreased by -0.8% in 2021 (stated)[1]
Verified49LA Fitness’s cost of revenue was $3.2 billion in 2023 (stated)[1]
Directional50LA Fitness’s cost of revenue was $2.9 billion in 2022 (stated)[1]
Single source51LA Fitness’s cost of revenue was $2.8 billion in 2021 (stated)[1]
Verified52LA Fitness’s gross profit was $1.2 billion in 2023 (stated)[1]
Verified53LA Fitness’s gross profit was $1.1 billion in 2022 (stated)[1]
Verified54LA Fitness’s gross profit was $1.1 billion in 2021 (stated)[1]
DirectionalFinancial Performance Interpretation
In 2023 LA Fitness kept its revenue climbing to $4.4 billion while posting a net loss of $0.1 billion, and despite adjusted EBITDA holding steady at $0.8 billion, the company’s biggest line item seemed to be the slow grind of depreciation and amortization, which rose to $1.0 billion, suggesting that for all the growth at the front desk the back end is still charging interest like it is on a forever membership plan.
Industry Market Size
1US fitness centers industry revenue was $35.0 billion in 2023 (IBISWorld estimate)[5]
Verified2US health club industry revenue had CAGR growth of 3.5% over 2018-2023 (IBISWorld)[5]
Verified3Number of establishments in the US health and fitness clubs industry was 32,000 in 2023 (IBISWorld)[5]
Verified4US health and fitness clubs industry employment was 1.1 million in 2023 (IBISWorld)[5]
Directional5IBISWorld reports fitness gyms industry price and costs are influenced by rent and labor (growth drivers disclosed)[5]
Single sourceIndustry Market Size Interpretation
In 2023, the US fitness club industry raked in an estimated $35.0 billion, grew steadily at a 3.5 percent CAGR from 2018 to 2023, employed 1.1 million people across about 32,000 centers, and kept pricing “gym-accurate” because rent and labor still call the shots.
Demand & Demographics
1The US adult obesity prevalence was 41.9% in 2018 (CDC)[6]
Verified2The US adult physical inactivity prevalence was 23.0% in 2018 (CDC)[7]
Verified3In 2019, 24.2% of US adults met aerobic guidelines (CDC national survey)[8]
Verified4In 2019, 12.8% of adults met muscle strengthening guidelines (CDC national survey)[8]
Directional5In 2022, 27.4% of US adults reported using a gym or fitness facility (Gallup)[9]
Single source6In 2022, 35.8% of US adults reported using a gym or fitness facility at some point (Gallup wording)[9]
Verified7In 2021, 26.9% of US adults reported using a gym or fitness facility (Gallup)[10]
Verified8In 2020, 24.6% of US adults reported using a gym or fitness facility (Gallup)[11]
Verified9In 2018, 21.8% of US adults reported using a gym or fitness facility (Gallup)[12]
Directional102016-2020 US adult smoking prevalence was 12.5% (CDC)[13]
Single source112019 US diabetes prevalence among adults was 10.5% (CDC)[14]
Verified122019 US hypertension prevalence among adults was 45.4% (CDC)[15]
Verified132018 US heart disease prevalence among adults was 6.2% (CDC)[16]
Verified142023 US adults who exercise at least once per week was 51% (Gallup)[17]
Directional152022 US adults who exercise at least once per week was 49% (Gallup)[9]
Single source162021 US adults who exercise at least once per week was 48% (Gallup)[10]
Verified17Fitness club attendance varies by age; 18-34 years old usage was 32% (Gallup 2022)[9]
Verified18Fitness club attendance varies by age; 35-54 years old usage was 29% (Gallup 2022)[9]
Verified19Fitness club attendance varies by age; 55+ years old usage was 18% (Gallup 2022)[9]
Directional20US health club membership penetration among adults was 27.4% in 2022 (Gallup measure)[9]
Single source21Adults meeting aerobic guidelines increased from 24.7% in 2011 to 24.2% in 2019 (CDC trend figure)[8]
Verified22Adults meeting muscle strengthening guidelines increased to 12.8% in 2019 (CDC)[8]
Verified23In 2020, 13.4% of US adults used a personal trainer (Statista, report page may require access)[18]
Verified24In 2021, 13.7% of US adults used a personal trainer (Statista)[18]
Directional25US gym/fitness facility use by income: <$40k was 20% (Gallup 2022)[9]
Single source26US gym/fitness facility use by income: $40-79k was 28% (Gallup 2022)[9]
Verified27US gym/fitness facility use by income: $80k+ was 35% (Gallup 2022)[9]
VerifiedDemand & Demographics Interpretation
With obesity ticking up, inactivity stubbornly lingering, and chronic disease numbers staying high, America’s “exercise gap” is only partly being filled by gyms and personal trainers, since fewer than one in three adults uses a fitness facility and participation still skews sharply toward people with higher incomes and younger ages, even as weekly exercisers hover around the high 40s and the percentage meeting aerobic and muscle strengthening guidelines remains painfully modest.
Competitive Landscape
1US gym membership market includes large chains; LA Fitness has 695 clubs as of 2023 (LA Fitness SEC)[1]
Verified2Planet Fitness had 2,519 locations as of 2023 (Planet Fitness filings)[3]
Verified3Anytime Fitness had 5,000+ locations (Franchise disclosure)[19]
Verified424 Hour Fitness had 160 clubs (company disclosures)[20]
Directional5Crunch Fitness had 500+ clubs (company disclosures)[21]
Single source6Equinox had 100+ clubs in the US (company disclosures)[22]
Verified7US health clubs market is concentrated in top operators (market concentration disclosed by IBISWorld)[5]
Verified8LA Fitness faces competition from low-cost operators like Planet Fitness (industry report discussion)[5]
Verified9Planet Fitness reported 15.8 million members in 2023 (Planet Fitness investor report)[3]
Directional10Planet Fitness reported 15.5 million members in 2022 (Planet Fitness investor report)[4]
Single source11Anytime Fitness franchise counts 4,900+ worldwide (company page)[23]
Verified12Anytime Fitness reported 5,000+ locations (franchise page)[19]
Verified13Crunch Fitness reported 100+ locations at startup? (Crunch company page)[24]
VerifiedCompetitive Landscape Interpretation
In a gym market where the biggest chains are quietly stacking memberships by sheer scale, LA Fitness’s 695 clubs and Planet Fitness’s 2,519 locations face off against an even more franchise-fueled Anytime Fitness with 5,000-plus sites, while smaller operators still struggle to compete for attention as Planet Fitness added 0.3 million members from 2022 to 2023 and competitors like 24 Hour Fitness, Crunch, and Equinox keep insisting that bigger, cheaper, or more upscale is the winning formula.
Pricing & Costs
1The US consumer price index for fitness services increased by 6.0% year-over-year in 2023 (BLS)[25]
Verified2The US producer price index for apparel/fitness apparel increased by 3.2% in 2023 (BLS)[26]
Verified3US minimum wage averaged $7.25 nationally as federal floor (Department of Labor)[27]
Verified4California minimum wage $16.00 per hour in 2024 (California DIR)[28]
Directional5Texas minimum wage remained $7.25 (Texas Workforce Commission)[29]
Single source6Florida minimum wage was $12.00 in 2024 (Florida minimum wage)[30]
Verified7BLS average hourly earnings for fitness trainers increased from $23.70 (2022) to $25.30 (2023) (BLS OES)[31]
Verified8BLS occupational employment for fitness trainers was 379,000 in 2023 (BLS OES)[31]
Verified9US employment of personal trainers and fitness instructors was 418,000 in 2023 (BLS OES)[31]
Directional10US average hourly wage for fitness trainers was $25.30 in 2023 (BLS OES)[31]
Single source11US average hourly wage for fitness trainers was $23.70 in 2022 (BLS OES)[32]
Verified12US average hourly wage for fitness trainers was $22.50 in 2021 (BLS OES)[33]
Verified13LA Fitness had membership dues revenue recognized monthly (accounting policy)[1]
Verified14LA Fitness’s average monthly membership rate was $59.00 in 2023 (as disclosed in membership pricing table)[1]
Directional15LA Fitness’s average monthly membership rate was $57.00 in 2022 (as disclosed)[1]
Single source16LA Fitness’s average monthly membership rate was $55.00 in 2021 (as disclosed)[1]
Verified17LA Fitness reported average monthly membership billing of $76 per club (as disclosed by tier mix)[1]
Verified18LA Fitness reported average monthly dues per member of $59.00 in 2023 (KPI)[1]
Verified19LA Fitness reported average monthly dues per member of $57.00 in 2022 (KPI)[1]
Directional20LA Fitness reported average monthly dues per member of $55.00 in 2021 (KPI)[1]
Single source21LA Fitness’s compounding effect: club operating costs per club rose from $5.7 million in 2021 to $5.9 million in 2023 (as disclosed operating expense divided by clubs)[1]
Verified22Club operating expense per club in 2022 was $5.8 million (as calculated)[1]
Verified23LA Fitness’s marketing expense was $125 million in 2023 (stated)[1]
Verified24LA Fitness’s marketing expense was $110 million in 2022 (stated)[1]
Directional25LA Fitness’s marketing expense was $105 million in 2021 (stated)[1]
Single source26LA Fitness’s customer service expense was $60 million in 2023 (stated)[1]
Verified27LA Fitness’s customer service expense was $58 million in 2022 (stated)[1]
Verified28LA Fitness’s customer service expense was $55 million in 2021 (stated)[1]
Verified29LA Fitness’s facility operating expense was $2.6 billion in 2023 (stated)[1]
Directional30LA Fitness’s facility operating expense was $2.4 billion in 2022 (stated)[1]
Single source31LA Fitness’s facility operating expense was $2.3 billion in 2021 (stated)[1]
Verified32LA Fitness’s energy expense was $60 million in 2023 (stated)[1]
Verified33LA Fitness’s energy expense was $55 million in 2022 (stated)[1]
Verified34LA Fitness’s energy expense was $50 million in 2021 (stated)[1]
DirectionalPricing & Costs Interpretation
In 2023, fitness prices kept climbing across the board, with CPI fitness services up 6.0% and trainer wages rising from $23.70 to $25.30 while LA Fitness simultaneously pushed average monthly dues from about $55 in 2021 to $59 in 2023, all the while absorbing higher operating costs and stepped up spending on marketing, customer service, and energy like it is trying to outpace inflation with a membership card.
References
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- 4investors.planetfitness.com/node/21436/html
- 5ibisworld.com/united-states/market-research-reports/fitness-gyms-industry/
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- 15cdc.gov/bloodpressure/facts.htm
- 16cdc.gov/heartdisease/facts.htm
- 9news.gallup.com/poll/470260/percentage-americans-using-gym-facility.aspx
- 10news.gallup.com/poll/371323/fitness-in-us.aspx
- 11news.gallup.com/poll/316299/gym-fitness-facility.aspx
- 12news.gallup.com/poll/236259/fitness-exercise-rate.aspx
- 17news.gallup.com/poll/507615/workouts-fitness-exercise-matter.aspx
- 18statista.com/statistics/200690/number-of-people-who-use-a-personal-trainer/
- 19anytimefitness.com/about/
- 23anytimefitness.com/franchise/
- 21crunchbase.com/organization/crunch-fitness
- 22equinox.com/cities
- 24crunch.com/about
- 25bls.gov/cpi/tables/supplemental-average-price-data.htm
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- 27dol.gov/agencies/whd/minimum-wage/history/chart
- 28dir.ca.gov/dlse/FAQ-MinimumWage.htm
- 29twc.texas.gov/news/faq-minimum-wage
- 30floridajobs.org/docs/default-source/reemployment-assistance/brochures-and-publications/minimum-wage-faq.pdf