The CEO's vote of confidence in turning Holmes Place into a growing wellness company
Starting as a gym chain, the company is transforming into a diversified health and sports group, operating dozens of clubs in various styles. Operational leverage may allow it to realize its ambitious goals for 2030, provided the security situation remains stable. The CEO has already voted with her own money. Company analysis.
Amid frequent stock exchange reports, complex financial statements, and sharp stock fluctuations, it is sometimes difficult for the private investor to navigate the capital market. Globes presents a new column that will analyze one Israeli stock every two weeks, mainly from the second tier, with a value of 500 million shekels or more. We will explain the companies' areas of activity, the financial data behind them, and what every investor needs to know. The columnist is Lior Wieder, an investment manager and veteran analyst, founder of the "Profit Multiplier" information service.
In the local capital market, where many investors are constantly looking for the next big thing, an impressive business turnaround is taking place under the radar at one of Israel's oldest companies. The Holmes Place Group, which began its journey as a gym chain, has completed a transformation into a nationwide, diversified, and multi-brand health and sports (Wellness) platform. The company has built a comprehensive brand portfolio designed to appeal to everyone — from accessible neighborhood solutions to premium training. The local expansion potential is particularly prominent against the backdrop of low penetration rates in Israel: only about 9% of Israelis are gym members (for comparison, in Switzerland the rate is about 15%, in Australia about 20%, and in the USA about 24%).
5 formats: appealing to everyone
The network's main strength lies in the variety of options it offers through five formats:
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Premium clubs: gym, rich system of studio classes, pool, sauna, spa, and cafe.
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Energy clubs: large and equipped gym and variety of studio classes for those focused on training only.
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Family clubs: combining pools and activities for the whole family.
The low-cost premium sector contains the accessible Icon network (about 50 clubs) and the REVO Fitness network, which focuses on Pilates equipment rooms (17 across the country) and is in accelerated growth. Alongside the acquisition of 51% of the REVO network, the company is examining expansion into synergistic fields, including padel and health.
Holmes Place
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Field of activity: fitness and health platform
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Year of establishment: 1980
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Founder: Allan Fisher and 6 British businessmen
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Chairman: Richie Hunter
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CEO: Keren Shtivi
In total, the network operates 81 clubs across the country for over 200 thousand subscribers.
Rare trust and financial backing
Holmes Place is traded at a market value of about 600 million shekels. A key strength for investors is the rare alignment of interests between management and shareholders. CEO Keren Shtivi made an unusual move when she bought shares from her own pocket in the amount of about 51 million shekels (about 7.4% of the company). This vote of confidence, alongside a low and comfortable debt-to-EBITDA ratio of only about 0.7 and a constant cash flow, give the company high financial robustness. The company combines growth with a generous dividend policy.
Looking ahead, the company published growth forecasts for 2030: it expects to operate 90–100 clubs and reach 255–265 thousand subscribers, which is expected to bring the company to double its EBITDA to up to 172 million shekels. First-quarter results show the company is enjoying clear operational leverage: while revenues rose by about 4% to 148.6 million shekels, net profit grew by 10% to 12.5 million shekels, and EBITDA grew by 12% to 27.2 million shekels.
Management demonstrated strict managerial discipline by proving a willingness to close loss-making clubs. Among the risks are wars that force branch closures and the trend of private fitness trainers.
The bottom line
In my opinion, the Holmes Place Group presents one of the most interesting and stable fundamental investment angles in the local capital market. The combination of market leadership, economies of scale, and a diversified brand portfolio gives the company structural resilience. Holmes Place is emerging as a high-quality long-term holding for investors looking for a combination of growth, cash flow, and value.
