Marketing exercise

There was a time when a hotel could put a treadmill, a bike and some free weights in an empty bedroom and call it a gym. Guests wouldn't really care. They weren't there to use the gym anyway. They didn't use it at home and they were on holiday now, so they certainly wouldn't be using it.

But things are changing.

The UK population is getting fatter, there's no doubt about that. We have all seen the statistics telling us that if action isn't taken now, a third of adults will be obese by 2020. But at the same time we are also getting fitter and becoming more health conscious.

A recent study from market research company Mintel reveals that there are now more than twice as many members of health clubs than there were 10 years ago, and a million more than there were in 2002. The research also points out that people are becoming more and more aware of their health and fitness levels and becoming increasingly aware of the benefits of regular exercise, a trend that, Mintel predicts, is set to continue.

And if hoteliers want to make the most out of this growing sector, they need to make sure they get they get their gym in shape.

Simon Waterson, personal trainer to the stars and in-house trainer at the Peak Health Club & Spa at London's Carlton Tower hotel, reckons having a decent hotel gym can be influential in winning over guests, and is therefore more worthwhile than some other hotel facilities.

"A lot of people now want hotels to have good gyms and will select a hotel for its gym," Waterson says. "People nowadays would rather have a good gym than a good room."

Recent research from the USA supports Waterson. A study of US business travellers for hotel chain Westin Hotels & Resorts found that the quality of hotel fitness facilities was an important factor for 59% of respondents when choosing a hotel. More than 60% said they checked to see if a hotel had a gym during the reservation process.

Despite the obvious importance of gyms to guests, 61% said they had encountered hotels without facilities and 64% said hotel gyms often felt like an afterthought. More than half of those surveyed said they had decided not to use a hotel's gym because it was in a bad condition.

In response to the survey, Westin has teamed up with sports giant Reebok to develop a fitness programme for travellers, which will include custom-designed fitness rooms and an in-room yoga and pilates workout.

So, as the public becomes more health conscious and more demanding, what can hoteliers do to make sure they get and keep hold of this ever-growing group?

Waterson says hoteliers need to bite the bullet and spend a bit of money installing a decent gym. Make sure the location is good, he says, create a welcoming atmosphere, have in-house trainers and instructors and open it up to the public. Then you can start making real money.

The Peak seems to do this particularly well. The gym, which Waterson rates as one of the best in London, is on the ninth floor of the hotel and is surrounded by floor-to-ceiling windows offering fantastic panoramic views of Chelsea. It also has Waterson on the team - which helps boost takings a little bit. "People come and stay at the hotel for two months just so they can work out with me," he says. "The hotel must make a hell of a lot of money."

For hotel chains, opening a branded gym company in your properties can be a money-maker. Both Hilton and De Vere run their own in-hotel fitness clubs. Hilton has the LivingWell chain of gyms, while De Vere has the Village Hotel & Leisure clubs as well as its stand-alone Greens fitness clubs.

De Vere chief executive Carl Leaver has said he thinks the group's Village hotels are the most exciting part of the business and will be concentrating on their development. In the 12 months to 3 December, the hotels saw their revenue per available room increased by 2.1% to £41.17, a premium of almost 38% over their peers. Operating profit at the chain grew by more than 10%.

Chris Ayres, operations directors for Greens, said the contribution the gyms made to the finances of the Village hotels was "very significant", providing up to 50% of profits in some of the hotels.

"I think having a gym is important strategically because it makes such an impact to the bottom line," Ayres says. "I think the hotel market is actually more attractive than the stand-alone fitness market to members. It seems easier to retain members in hotels."

Ayres adds that hotel gyms can be used as a great sales tool for the business and, providing they are not too small, will make money for the hotel.

Dave Courteen, managing director of Fitness Express, which manages 24 health clubs in UK hotels, including eight in Millennium & Copthorne hotels, says hotels with decent gyms do well financially because they can help boost room rates and yield.

According to a recent survey by Fitness Express of its 22,000 members, two-thirds said they thought increased hotel prices were justified if there was a gym on site.

The survey, which asked members about their hotel usage and expectations of hotel fitness facilities, also echoed the findings of those in the USA. A massive 89% of respondents said that given the choice they would choose to stay in a hotel with leisure facilities rather than one without.

"The results of our survey show that leisure facilities are no longer just an optional extra in hotels," Courteen says. "Customers' expectations have changed, and relaxing by the pool or working out in the gym has become an important part of staying in a hotel and is widely considered as fundamental as enjoying a drink in the bar or eating fine food in the restaurant."

He adds: "If properly planned and developed, a leisure club can become a profitable income stream for a proprietor of a hotel."

And Courteen reckons you don't even need the most hi-tech equipment if you want to profit from a gym. He says knowing who your market is and creating a friendly atmosphere is a huge part of the appeal.

"If you are staying in a hotel, you don't want to use a gym that is cold and empty," Courteen says. "You want one that is friendly, with people in it. It makes your stay more enjoyable and gives the facilities a bit of life."

"Our survey also found that 92% of people wanted to belong to a club where people knew their name, which hotels are good at because they tend to have a smaller membership."

Opening up a hotel to outside members, although a great way of generating extra revenue and creating an atmosphere, can have its problems. Courteen says hoteliers need to look at their hotel market before opening the gym up to outside members. If the hotel is predominately a family destination, make sure your gym has a family focus, he says. If it is predominately for business customers, make sure the gym membership reflects this.

With all these things to consider, opening a hotel gym is not as easy as it used to be, but it is probably a bigger earner now than it has ever been. There has never been a better time to get your hotel fitness facilities in shape.