GymNation Expands with 20th Location

GymNation, known as "The People's Gym," is revolutionizing health and fitness by making gym access more affordable and accessible throughout the Middle East.

Entrepreneur Middle East interviewed Loren Holland, the founder and CEO, to discuss the company's expansion plans in the MENA region and beyond.

Over the past year, GymNation opened 10 new gyms, effectively doubling its locations. How did they achieve such rapid growth?

The growth trajectory accelerated after a management buyout from JD Sports, a UK FTSE 100 company, allowing GymNation to gain control over its strategic direction without corporate limitations.

This autonomy enabled a focused expansion, particularly in the Saudi Arabian market.

Opening 10 gyms, including six in Saudi Arabia, required careful planning to ensure smooth execution. Despite the challenges, all gyms were opened on budget and on time, with membership numbers almost double the initial projections.

GymNation invested over $15 million in new sites and $20 million to acquire existing property in Motor City, securing long-term prospects and expanding facilities by merging with Fitness First space, creating one of the world's most advanced fitness centers.

Six new gyms are in Saudi Arabia. How is GymNation changing the fitness landscape there with its affordable and engaging model?

Saudi Arabia's fitness industry is booming, encouraged by government initiatives to increase fitness engagement among its citizens.

GymNation aims to lower the affordability barrier, making fitness more inclusive across the Kingdom.

With over 20,000 active members in Saudi Arabia, 44% of whom are first-time gym-goers, GymNation disrupts the status quo and expands the market, introducing a new demographic to fitness, benefiting society as a whole.

Interestingly, demand among females in KSA exceeds that of males. Feedback indicates that female-only gyms are often more expensive than male counterparts.

GymNation maintains uniform pricing regardless of gender, a key aspect of its future offerings in Saudi Arabia.

How does doing business in Saudi Arabia compare to the UAE?

Despite warnings about replicating a UAE business model in Saudi Arabia, GymNation's experience has been positive.

The support from Saudi’s Ministry of Investment was crucial for a successful market entry without a local partner, showcasing Saudi Arabia as a business-friendly environment open to foreign investment.

Those deterred by skepticism should know that Saudi Arabia welcomes foreign ventures. Establishing a local team is crucial to success, rather than managing operations remotely.

A core aspect of Saudi Arabia's Vision 2030 and the Dubai Fitness Challenge is promoting a healthier society. What role does GymNation play in these initiatives?

Government-led initiatives in the UAE and KSA are key drivers behind the fitness industry's growth.

The Middle East boasts the world's fastest-growing fitness market, thanks to programs like Sheikh Hamdan's 30x30 fitness challenge and Saudi's Vision 2030 Quality of Life Program.

With a population exceeding 35 million and fitness penetration at 5-7%, the Saudi market presents immense potential, with projections for market doubling in the next few years.

GymNation is poised to lead these initiatives as the region's 'movement partner,' promoting active lifestyles and supporting community fitness goals.

GymNation has introduced innovative concepts like HYROX. How does it continue leading fitness trends, and what can members expect soon?

While focusing on expanding locations, GymNation plans to reinvest over $3 million into its product by 2025. Five new HYROX Performance Centers will open, the first in the Middle East, offering top-tier training facilities for hybrid athletes.

Collaboration with HYROX led to the HYROX365 Challenge, blending race elements with training programs.

Investment of over $1.5 million into pilates studios and launching a comprehensive wellness and recovery offering in Q1 2025 is planned.

Partnering with Olympic medalist Tony Jeffries, GymNation offers Box 'N Burn classes across many locations.

What's next for GymNation? What are the expansion plans in the GCC and beyond?

Focused on growth, GymNation plans to open 20-30 more sites in the next year, entering new markets like Kuwait, Bahrain, and Qatar. Competitor valuation demonstrates significant sector potential.

GymNation aims to further invest in AI and technology platforms, enhancing operational efficiency and member experiences, setting it apart from competitors using outdated systems.

Long-term, GymNation envisions over 100 gym locations across the GCC, with potential expansions outside the region, underscoring brand global value.

To support rapid growth, GymNation invested in company infrastructure to leverage the GCC fitness market's 15-20% annual growth.

The company embraces unique strategies, like transferring over 15% equity to senior management, fostering a culture competitors can't replicate.

GymNation acknowledges that success stems from having the right people, culture, and incentives while maintaining its promise to deliver top industry value.

With new team additions on the horizon, it remains committed to providing the best possible service as a fitness leader.

Source: entrepreneur

The opinions shared in the GymNation blog articles are solely those of the respective authors and may not represent the perspectives of GymNation or any member of the GymNation team.