Successful commercial gyms develop their business model through a well-defined plan. Long-term profitability compares initial start-up expenses which both construction/build-out and equipment purchases to projected membership sales forecasts and other income generators. This comparison allows management to create initial and ongoing budgets to plan for expenses specific to the fitness center including cardiovascular and strength equipment purchases as well as ongoing maintenance and repair.

The uniqueness of the hotel fitness center lies in the fact that success is not measured by a balance sheet but rather non-tangibles that define the ROI. Often times management looses site of the fitness centers effectiveness because of this negative cash flow. This eventually leads to less and less willingness on management’s part to spend money on the upkeep of the facility. Properly planning a detailed budget for the worst case scenario up-front will allow the operator funds to maintain the facility.

By far the largest expense in the hotel fitness center, assuming build-outs are limited, is the equipment procurement. Budgeting for this expense is dependant on a number of variables but can be summarized in a dollar amount per square foot workout floor space. In general, this ranges from $50 sq/ft ...