STAKIS yesterday outlined plans to spend #50m on building 15 LivingWell health clubs as part of its drive to double club membership to 100,000 by the turn of the century.
A company spokesman said one of the new clubs would probably be in Perth and two or three others situated elsewhere in
Scotland. The majority would be south of the Border.
The Glasgow-based hotel and casino group diversified into health clubs in 1996 when it acquired LivingWell for #19.75m. Since then it has expanded the nationwide chain from five to 60 sites, most of which are operating at or near capacity.
Stakis is spending #20m on building six more clubs, with 20 metre swimming pools, large, well-equipped gyms, aerobics rooms, sauna and massage facilities. The latest #50m investment package is in addition to this.
Stuart Broster, the managing director of LivingWell, said: ''We have identified a demand in the marketplace for the LivingWell product. Our expansion plans will concentrate on areas where we do not already have a presence.''
Stakis told City analysts last month that it aims to double the 50,000 membership of its
LivingWell clubs by the year 2000. But details of the investment plans to achieve this goal were only published yesterday.
Most of the new LivingWell clubs will be large Premier Clubs, with up to 35,000 square feet of floor space and a full range of facilities. Some, but not all will be attached to Stakis hotels.
Despite the rapid expansion of LivingWell under Stakis ownership, the chain of health clubs still accounts for a very modest part of the company's business.
During the three months to March, LivingWell contributed just #5.2m of the group's overall #85.4m turnover, but Stakis sees health clubs as being very much a growth market.
LivingWell makes most of its money from the basic membership fee. Once this is paid,
members do not have to pay any additional charges to use the
facilities available.
But fees vary according to the size of club and its location. The sum of #76 will buy one month's membership for two in Glasgow, but only an individual membership at some London clubs.
One of the newest LivingWell establishments at Newcraighall on the outskirts of Edinburgh
incorporates a creche. Stakis now plans to build creches at several other clubs.
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