Millennium Partners Sports Club Management LLC has signaled its plans to grow in 2011. The Boston-based company is moving Art Curtis, former CEO, into a new role with parent company Millennium Partners, where he will focus on mergers and acquisitions of health club properties.
In December, Millennium Partners entered into a new capital partnership, the details of which the company would not disclose other than to say the capital is being used on expansion and some renovations and equipment purchases.
The company’s expansion plans focus on mostly urban areas in Boston and the Washington, DC, area, according to Smaiyra Million, who was promoted to CEO from her COO role. Million has more than 25 years of experience in the hospitality and health club industry, 10 of those with The Ritz-Carlton Hotel Co.
Much of that expansion will be through purchasing existing clubs, but Million says the company will build if the right opportunity presents itself. Millennium Partners is a developer of luxury mixed-use properties.
During the past three months, the company has invested about $1.3 million in new equipment. Million says more equipment purchases are on tap for this year, in addition to a locker room renovation at Reebok Sports Club/NY.
“We’ve had a great track record,” Million says. “When Millennium bought the business, we invested $35 million five years ago in the clubs.”
In 2006, Millennium purchased five clubs for $80 million from The Sports Club Co., in which Millennium had been a major stockholder. Millennium now operates six Sports Club/LA locations.
Million says that although the recession did affect the luxury market with some people dropping memberships out of necessity and others dropping out of guilt about still being able to afford their memberships, the market is improving. Sports Club/LA is now focusing even more on customer service and the value proposition of the club rather than just the dollars, she says.
Millennium Partners ranked No. 9 on Club Industry’s Top 100 Clubs list in 2010, based on an estimated 2009 revenue of $110 million.