Holmes Place CEO Drives Growth by Transforming Fitness Chain into National Wellness Platform
Holmes Place, a longstanding Israeli fitness chain founded in 1980, has undergone a significant business transformation into a comprehensive wellness platform. The company now operates 81 clubs nationwide with over 200,000 members, offering five distinct formats ranging from premium clubs with pools and spas to accessible neighborhood gyms and specialized Pilates studios. This diversified portfolio targets a broad customer base, enabling rapid growth and expansion potential, especially given Israel's relatively low gym membership penetration of about 9%, compared to higher rates in countries like the US and Australia.
The company’s low-cost premium brand, Icon, showed a 24% increase in membership in the first quarter of 2026, reaching approximately 102,000 members across 47 locations. Family clubs also contribute to growth, with plans to open more venues in additional cities and towns. Holmes Place is exploring further expansion into complementary wellness areas such as paddle sports and health services.
Holmes Place is publicly traded with a market value near 600 million shekels. CEO Keren Shtewi demonstrated strong confidence in the company’s future by personally investing about 51 million shekels, acquiring 7.4% of shares from her private holdings. The company maintains a low debt-to-EBITDA ratio of 0.7 and benefits from steady subscription-based cash flow. It also follows a generous dividend policy, distributing tens of millions of shekels annually.
Financial results from Q1 2026 reveal operational leverage, with revenues rising 4% to 148.6 million shekels, net profit increasing 10% to 12.5 million shekels, and EBITDA growing 12% to 27.2 million shekels. Gross margins improved from 18.6% to 21.1%. Management has shown discipline by closing unprofitable clubs, despite challenges such as regional conflicts forcing temporary closures and competition from private fitness trainers.
Looking ahead, Holmes Place projects operating 90 to 100 clubs by 2030, with 255,000 to 265,000 members, and aims to double EBITDA to approximately 172 million shekels. The company’s broad brand portfolio, recurring revenue base, and scale advantages position it as a stable and attractive long-term investment in Israel’s capital market.
