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The $100+ Gym Pivot: 24 Hour Fitness and LA Fitness Chase the Luxury Class

The traditional “big-box” fitness sector is undergoing a major luxury and wellness repositioning. Two legacy titans, 24 Hour Fitness and LA Fitness (parent company Fitness International, LLC), have rolled out elevated, experiential concepts designed to appeal beyond basic weight-and-cardio spaces: Founders Club by 24 Hour Fitness and ELEVATE by LA Fitness.

The New Concepts at a Glance

1. Founders Club by 24 Hour Fitness

  • The Launch: Introduced by 24 Hour Fitness alongside original founder Mark Mastrov, the brand’s flagship debut is a $10 million, 45,000-square-foot facility opening in Summerlin, Las Vegas.
  • The Core Features: Positioned as a blend of fitness, advanced longevity, and hospitality, the club features:
    • 25,000 square feet dedicated to strength and free weights (including 12 lifting platforms and dedicated glute-training zones).
    • High-tech recovery amenities featuring hyperbaric oxygen chambers, cryotherapy/wave chairs, red-light saunas, and pelvic floor treatment chairs.
    • A full medical spa providing clinical wellness offerings such as IV nutrient therapy.
    • Hospitality and community perks, including social workspace cafés, private locker suites, cold plunge rooms, and a resident DJ booth.
  • Access: Operates on an upgraded membership tier while maintaining 24/7 access.

2. ELEVATE by LA Fitness

  • The Launch: Rolled out by parent company Fitness International as a bridge between standard LA Fitness clubs and ultra-high-end boutiques like Club Studio, highlighted by openings like the recent $4.8 million, 30,000-square-foot location in Tampa, Florida.
  • The Core Features: Designed to bring boutique studio culture and athletic performance inside a multi-purpose gym environment:
    • Full Reformer Pilates studios.
    • HYROX-style functional athletic zones combined with custom Rogue Rig setups.
    • An expanded heavy-lifting section (branded “LIFT”) with Olympic platforms and specialized lower-body equipment.
    • Modernized aesthetic upgrades, boutique recovery zones, and dedicated glute rooms.
  • Access: Priced as an elevated sub-tier above standard legacy clubs; multi-club basic memberships typically require add-on tiers or exclusions to enter Elevate clubs.

Why Are They Chasing This Market Segment?

  1. Escaping the “Barbell Economy” Squeeze: The fitness landscape has split into two extremes: low-cost, high-volume (HVLP) chains like Planet Fitness and Crunch Fitness ($10–$30/month) dominating the budget tier, and luxury providers like Equinox and Lifetime ($200–$350+/month) cornering affluent wellness enthusiasts. Mid-tier $40–$50/month gyms risk becoming obsolete unless they justify higher price tags.
  2. The “Boutique Stacking” Trend: Modern fitness consumers frequently pay for a standard gym membership plus separate subscriptions for Pilates, HIIT (F45/OrangeTheory), or HYROX training. Concepts like Elevate capture that secondary studio spend by housing high-demand boutique modalities under one roof.
  3. The Longevity and Recovery Boom: Fitness demographics (particularly Gen Z and Millennials) are prioritizing restorative care, cold plunges, saunas, and medical wellness alongside heavy lifting. Founders Club directly targets this segment by investing heavily in recovery tech and med-spa partnerships.
  4. Higher Average Revenue Per Member (ARPM): Both operators can cross-sell ancillary services—personal training, IV treatments, recovery upgrades, and premium class packages—dramatically increasing margins without needing endless floor footprint expansion.

Will It Work?

The Bull Case (Why It Can Succeed):

  • Value Aggregation: Paying $90–$150/month for an all-in-one gym that includes Reformer Pilates, HYROX setups, Olympic lifting, and recovery suites is significantly cheaper than paying for a standard gym alongside 2 to 3 separate boutique studios.
  • Real Estate Advantage: Both chains already hold prime commercial retail footprint that can be upgraded or retrofitted rather than built entirely from scratch.

The Bear Case (The Headwinds):

  • Brand Legacy Perception: Both brands carry decades of consumer associations with crowded floor plans, broken machines, or dated locker rooms. Convincing users to view them on par with Equinox or boutique studios requires flawless ongoing maintenance and hospitality-level customer service.
  • Operational Execution: Running clean locker rooms with simple machines is fundamentally different from managing hyperbaric chambers, cold therapy tanks, and specialized Pilates reformer schedules. If staff and maintenance levels slip, the premium experience breaks quickly.

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