Fitness International Closes Gyms to Pivot to Boutique
The operator is converting lower-cost LA Fitness sites into high-end Club Studio locations to drive monthly subscription growth.
Updated on Oct. 25, 2026 in Openings & Closings
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Fitness International has closed more than 20 LA Fitness locations throughout 2026 as the company shifts its strategy toward the higher-end Club Studio brand. The move marks a pivot toward premium fitness offerings as visits to lower-cost gym locations continue to decline.
Why it matters
The transition reflects a strategic pivot toward premium market segments, trading high-volume, low-cost operations for the higher margins associated with boutique fitness services. This shift forces a change in customer demographic targeting and cost structures for operators in the competitive fitness space.
Fitness International closed over 20 LA Fitness gyms in 2026, while moving to scale its premium Club Studio brand from approximately 20 to 50 locations. Club Studio memberships range from $149 to $249 per month, significantly higher than the standard $50 monthly ceiling for LA Fitness.
The players
Fitness International
A major operator of fitness facilities that manages both the broad-market LA Fitness brand and the premium-tier Club Studio concept.
The details
Fitness International is systematically converting existing LA Fitness real estate into Club Studio sites to capture the boutique fitness market. These new locations replace traditional gym floors with specialized programming, including reformer Pilates, cycling, and boxing classes. By pivoting away from the low-cost model that previously characterized LA Fitness, the company is attempting to capture a larger share of consumer discretionary spending.
Timeline
2026: Fitness International recorded a decline in visits and closed more than 20 gym locations.
Next year: The company intends to grow its Club Studio footprint to 50 total locations.
Market Landscape
Fitness International’s strategy follows the broader industry trend of consolidating traditional gym space to accommodate high-margin boutique fitness programming. This pivot mirrors the industry-wide move toward specialized, premium-priced exercise experiences that prioritize class-based engagement.
Operators in the fitness sector should monitor the performance of converted high-end sites, as this shift signals a potential decline in the viability of mid-tier, high-volume gyms. Competing brands must evaluate whether their own cost structures can withstand similar competitive pressure from upgraded fitness experiences.
The takeaway
Fitness International is moving to align its physical footprint with the higher margins found in boutique fitness services. Watch this conversion as a leading signal for whether the low-cost gym model can maintain its market share against premium, class-heavy alternatives.
Further reading
Explore broader industry trends in Openings & Closings.
Source note: This article includes information reported by Inc..
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