Life Time Group Holdings, Inc. primarily provides premium health, fitness and wellness experiences at its athletic country club destinations and via the company’s comprehensive digital platform and portfolio of iconic athletic events – all with the intention of inspiring healthier, happier lives. All of the company’s assets and business operations are through Life Time, Inc. and its direct and indirect subsidiaries.
The company is a leading innovator in the industry having successfully created...
Life Time Group Holdings, Inc. primarily provides premium health, fitness and wellness experiences at its athletic country club destinations and via the company’s comprehensive digital platform and portfolio of iconic athletic events – all with the intention of inspiring healthier, happier lives. All of the company’s assets and business operations are through Life Time, Inc. and its direct and indirect subsidiaries.
The company is a leading innovator in the industry having successfully created a leisure model that incorporates the country club wellness lifestyle within a fitness and active living community. The company has built its reputation and robust brand equity through the company’s continuous focus on delivering high-quality experiences through the company’s omni-channel physical and digital ecosystem that includes various centers—distinctive, resort-like athletic country club destinations—across 31 states in the United States and one province in Canada.
The company’s centers serve communities in both suburban and urban markets across North America. Depending on the size and location of a center, the company offers expansive fitness floors with top-of-the-line equipment, spacious locker rooms, group fitness studios and spaces, indoor and outdoor pools and bistros, indoor and outdoor tennis courts, indoor and outdoor pickleball courts, basketball courts, LifeSpa, LifeCafe and the company’s childcare and Kids Academy learning spaces. The company’s premium service offerings are delivered by over 42,000 Life Time team members, including over 10,800 certified fitness professionals, ranging from personal trainers to studio performers.
The company’s premium real estate portfolio of owned and leased athletic country clubs spans over 17 million of indoor square feet and approximately seven million of outdoor square feet.
Membership Offering
The company offers a variety of convenient month-to-month memberships with no long-term contracts, including:
Base memberships that provide general access (with some amenities excluded) to a selected home center and all centers with the same or lower base monthly dues rate, with the option for a junior membership as an add-on. The junior membership add-on for children 13 years old and younger costs $20-$100 per month. The company does not count junior memberships as incremental in its membership count since they are already part of the company’s base membership;
Signature memberships that are base memberships plus access to certain products, services or spaces that would otherwise be accessible only upon payment of additional dues or fees, such as small group training and court time for certain racquet sports at certain centers;
Qualified base memberships that can be purchased at a reduced rate through partnerships with third party administrators, including certain medical insurance providers and which may have limited hours; and
Digital on-hold memberships for members who do not wish to access the company’s centers, but still want to maintain certain member benefits, including the right to convert back to a Center membership without paying an enrollment fee. The majority of the company’s digital on-hold memberships cost $15 per month.
The company also has Life Time Digital memberships for direct-to-consumer memberships that do not provide access to the company’s centers and do not convert back to a Center membership. The company’s digital membership is accessible through the company’s Life Time integrated digital app. Life Time Digital features include live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, and curated award-winning health, fitness and wellness content. The company reports its Life Time Digital memberships within its digital on-hold membership totals. The company’s digital offering is available to consumers at no charge through the company’s Life Time digital app. Users of the company’s free digital app are not included in its membership count. As the company continues to invest in its technology, including the Life Time app and artificial intelligence, the company’s members and users of its digital app will be able to further utilize and benefit from the company’s ‘Healthy Way of Life’ ecosystem.
Highly Predictable Subscription-Based Revenue Model
The company’s subscription-based membership model creates highly predictable and recurring revenue that has proven to be resilient for over 30 years and across economic cycles. Membership dues and enrollment fees comprise the company’s largest source of revenue, representing over 70% of the company’s total Center revenue. Coming out of the pandemic, the company made a strategic shift to a more robust subscription offering, and as a result, the company’s membership dues and enrollment fees now represent over 72% of the company’s total Center revenue for the year ended December 31, 2024.
Engaged Members
The power of the company’s lifestyle brand, attractive member demographics, breadth and desirability of amenities and services and high utilization of the company’s centers allow the company to build deeply meaningful connections with the company’s members, which are difficult for others in the company’s industry to replicate fully.
The company’s members are highly engaged and draw inspiration from the experiences and community the company has created. The value the company’s members place on the company’s community is reflected in the continued strength and growth of the company’s average revenue per center membership, center usage and the visits per membership to the company’s athletic country clubs. Total visits to the company’s clubs were over 114 million in 2024. Average visits per membership to the company’s centers remained strong at 143 for 2024.
The company’s member engagement is driven by the vast array of amenities, services, products and activities that enable an entire family to grow and develop, regardless of where they are in their health and wellness journey. The company supports its existing and prospective members through a concierge service model that keeps the company’s members’ interests first. The company also recruits, hires and certifies the best professionals in its industry to empower, educate and entertain the company’s members. The company offers something for every generation, from young children attending the company’s swim lessons and Kids Academy classes, teenagers and adults engaged in the company’s fitness equipment, Dynamic Personal Training and small group training and more senior adults engaged in the company’s ARORA community, to members of all ages participating in pickleball, the company’s iconic athletic events and a variety of the company’s other in-center activities. The following displays this wide assortment of physical and digital experiences:
Amenities: Indoor and Outdoor Pools, Group Fitness Studios, Cycle Studios, Yoga & Pilates Studios, Indoor and Outdoor Tennis Courts, Indoor and Outdoor Pickleball Courts, LifeCafe with Poolside Service, Bar and Lounge, Free Weight and Resistance Equipment, Cardiovascular Equipment, Steam Room and Sauna, Racquetball and Squash Spaces, Locker Rooms, Child Center and Kids Academy, and Basketball/Volleyball Courts.
Services: Dynamic Personal Training, Dynamic Stretch, Small Group Training, ARORA, MIORA, Weight Loss Coaching, Nutrition Coaching, LifeSpa and Medi-spa, Physical Therapy and Chiropractic, Assessments and Lab Testing, Sport Specific Coaching, Endurance Coaching, Swim Lessons and Team Coaching, Towel and Locker Service, and Experience Life.
Activities, Products and Events: Athletic Leagues and Tournaments, Kids’ Birthday Parties, Summer and Vacation Camps for Kids, Sports Training Camps, Athletic Events, Social Events, Outdoor Group Runs, Outdoor Group Cycle Rides, Swim Meets, Charity Events, Nutritional Supplements, and Apparel.
During 2024, the company also organized approximately 44,100 events and served as a social and community hub for the company’s members.
The company’s member base is primarily made up of members in affluent suburban and urban locations. The company’s membership base has a discretionary spending level that, on average, is less susceptible to adverse economic conditions.
Growth Strategies and Member Experience Initiatives
The company continues to build on that foundation by executing several strategies and initiatives to grow and expand its business, further engage the company’s members, optimize its memberships and member experience, and increase revenue per center membership. The company is elevating its member experiences through new and improved in-center service offerings, omni-channel offerings and wellness products. The company is also expanding the number of its centers in an asset-light model that targets higher income members, higher average annual revenue per center membership and higher returns on invested capital.
The company’s growth strategies are to expand and elevate in-center service offerings; optimize revenue per center membership; expand national footprint in affluent metropolitan statistical areas; flexible asset-light real estate model; and continue to expand the company’s omni-channel offerings.
Intellectual Property
The company files a substantial number of its trademarks and service marks with the United States Patent and Trademark Office, including for Life Time and many of the company’s branded studio classes, service offerings and products. The company considers its brand to be one of the company’s most important assets and certain of the company’s trademarks and service marks to be of material importance to the company’s business and actively defend and enforce such trademarks and service marks. Examples include LIFE TIME, LT logo2.jpg, EXPERIENCE LIFE, DPT DYNAMIC PERSONAL TRAINING, ARORA, MIORA, LIFECAFE, LTH, LTH1.jpg, LIFESPA, LIFE TIME HEALTHY WAY OF LIFE, LIFE TIME WORK and LIFE TIME LIVING.
Seasonality of Business
Seasonal trends have an effect on the company’s overall business. Generally, the company has experienced greater membership growth at the beginning of the year. The company also typically experiences increased levels of membership in certain centers during the summer pool season. During the summer months, the company also experiences a slight increase in its in-center business activity with summer programming and operating expenses due to the company’s outdoor aquatics operations and kids programming. The company typically experiences an increased level of membership attrition during the third and fourth quarters (year ended December 2024) as the summer pool season ends and the company enters the holiday season.
History
The company was founded in 1992. It was incorporated in 2015. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in 2021.