CityFitness plans $100m expansion with up to 50 new gyms

Fitness centre chain CityFitness plans to invest up to $100 million to expand its gym network over the next five years, as it targets a changing demographic and growing movement towards healthier lifestyles.

The chain announced plans to open up to 50 new fitness centres by 2031/32, taking its nationwide network beyond 100 locations.

CityFitness has more than 260,000 members across its 66 branches nationwide, and employs about 1200 staff and contractors.

The expansion will include the growth of its Simplicity Fitness premium facilities and the launch of women-only gyms.

The first location will open this spring in Christchurch.

CityFitness chief operating officer Doug Hatten said the growth programme represented one of the largest investments in the sector’s history.

“We’re not just growing our footprint, we’re making a long-term commitment to the health of New Zealanders,” Hatten said.

“Our goal is to ensure more communities have access to high-quality, low-cost fitness facilities. We’re focused on making fitness accessible to everyone, regardless of location, income or background.”

According to CityFitness, 21% of New Zealand adults are members of a gym, leaving plenty of room for growth.

The new locations will be built in regional and urban centres, with population catchments of 30,000-40,000 people within a 5-10km radius who have limited existing gym options.

Each site is expected to employ up to 20 staff, suggesting the creation of about 1000 jobs nationwide.

The next phase of the expansion will include new clubs in Newmarket in Auckland, Pāpāmoa in the Bay of Plenty, Courtenay Place in Wellington, and Pukekohe during 2026/27, alongside upgrades and relocations across the existing network.

These include new Simplicity Fitness facilities on Moorhouse Ave in Christchurch and at Fraser Cove in Tauranga, a larger Nelson CBD Club, and the relocation of CityFitness Upper Hutt to a new site; its existing premises will be converted into a Simplicity Fitness club.

The programme includes recent relocations of CityFitness clubs in Blenheim, Petone and Lyall Bay.

Further investment is planned to expand and modernise established clubs alongside the opening of new locations.

Hatten said investment in existing facilities was an important part of the company’s growth strategy.

“We don’t want growth to simply mean opening more sites. Existing members need to see the benefit of that investment as well. That means larger facilities where demand has outgrown the current site, better equipment and upgrading older clubs.”

The biggest change for the business will be a move into women-only gyms. Several facilities are planned around the country in response to broader changes within the fitness industry.

The new CityFitness women’s clubs will be based around the company’s Simplicity Fitness format, a smaller-format facility designed to provide a less-crowded, more-private alternative to its full-scale clubs.

Hatten said the move is aimed at reaching women who are active and interested in fitness but might not want to train in a conventional mixed gym.

“The fitness industry has changed significantly in terms of who is joining and how different groups want to exercise.

“Strong growth in younger men participating in the sector is one of the trends creating greater demand for women-only spaces, and we see that as a meaningful opportunity to broaden the range of environments available to New Zealanders.”

New locations and refurbished existing sites both have a part to play in CityFitness' long-term strategy.

CityFitness is also expanding its Simplicity Fitness offering, alongside greater investment in technology, equipment and facility design to cater to changing member preferences.

The business is seeing growth in small group training, virtual offerings and recovery services such as massage chairs and stretching zones.

The same applies to meditation rooms, saunas and reformer Pilates, as members request greater wellbeing experiences.

With the New Zealand fitness market more competitive than ever, Hatten said the business’ investment would ensure it continues to set the pace. The additional locations would create capacity for more than 200,000 additional members.

Hatten said 21% of adult New Zealanders in urban areas are members of a fitness centre, but compared with countries like Sweden, with 34% of the population engaged, there’s plenty of room for growth.

“The growth and opportunities in the market are what’s driving our expansion. With over half (54%) of Kiwi adults not meeting the World Health Organisation’s minimum physical activity guidelines, one of the highest rates in the Western world, the potential to get more people active is wide open.

“The implications of physical inactivity go well beyond individual wellbeing; it’s placing a growing strain on our health system. If we can shift even a portion of inactive adults into regular movement, there would be a significant long-term positive impact on public health costs and quality of life for Kiwis.

“It’s not about reaching 100 clubs and stopping; it’s just the next milestone. We’ll continue growing wherever there’s demand.”

CityFitness was founded in Porirua in 2000 and has an estimated 40% market share.

In June this year, CityFitness found itself in court; its parent, CityFitness Group, was convicted of breaching the Fair Trading Act over misleading pricing of gym memberships.

It was ordered to pay a $1.12 million fine by the Auckland District Court.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.