Third Space has announced profits more than doubled following an expansion drive that sparked a significant rise in memberships.
The London-headquartered premium fitness club, operating over a dozen locations throughout the capital, recorded a 115 per cent surge in pre-tax profit to £11.1m in 2024, according to accounts filed with Companies House, as reported by City AM.
The business, owned by American private equity firm KSL Capital Partners and commanding membership fees running into hundreds of pounds monthly, witnessed total revenue leap 43 per cent during the period to just shy of £100m.
The group’s robust performance represents a remarkable turnaround from a challenging spell throughout the pandemic, when revenues plummeted and losses approached £20m between 2020 and 2021.
“2024 was a positive year for the business, as it saw continued growth in membership levels and profitability,” Third Space said.
“The improved results are driven by both like-for-like trading clubs…and reflecting additional trading in the year from four new clubs.”
Third Space is poised to expand further in forthcoming months with the launch of a new facility in Queensway, West London, housed within the former Whiteley’s shopping centre, which has been transformed into luxury apartments as part of a £1bn regeneration project.
Luxury gym rivalries
The firm’s outstanding results present a stark contrast to its principal London premium fitness competitor, Equinox, which witnessed losses nearly triple over the identical timeframe. The company, which operates only three locations in London – Bishopsgate, Kensington and St James’s – reported a £21m loss for its 2024 financial year, a staggering 267 per cent increase from the previous year.
The firm’s net liabilities are now just under £100m since it began operations in the capital in 2012. Plans to inaugurate a fourth location in Shoreditch have been subsequently scrapped.
Equinox UK, a subsidiary of the New York-based health corporation Equinox Group, stated that it is dependent on financial backing from its American parent company to maintain operations, while auditors highlighted the “risks and uncertainties” confronting the business.
