The San Francisco-based company formerly known as Western Athletic Clubs operates “lifestyle campuses” and seeks to “bridge [the] gap between fitness and hospitality.” It was sold by an affiliate of KSL Capital Partners, LCC.
The Bay Club Company has announced its controlling acquisition by York Capital Management and the company’s management team, in addition to a minority investment from JMA Ventures. The seller was an affiliate of KSL Capital Partners, LLC. Financial terms were not disclosed.
As part of the transaction, the new ownership group is growing the pool of employee owners from 40-plus to more than 120 managers and directors.
Founded in 1977, the California-based, luxury, active lifestyle company was originally known as Western Athletic Clubs until it underwent a rebranding in 2013, bringing all eleven locations across six campuses under one premium brand. The rebranding initiative culminated a year-long brand realignment effort aimed at moving the Bay Club deeper into the hospitality industry while positioning it for expansion, the company said.
Seeking to be recognized “as the pioneer of the urban sports resort,” the Bay Club has brought together a management team comprised of fitness, hospitality, technology, and finance veterans over the past several years. Under the direction of this team, it has launched initiatives “to evolve beyond the fitness industry” and “enter the realm of hospitality” by grouping complementary properties into campuses and offering members “a range of high-end lifestyle amenities typically only found at country clubs and luxury resorts.”
Matthew Stevens, The Bay Club Company’s President and CEO, said that the new ownership arrangement will create “a powerhouse combination [that] will allow us to fully realize our goal of creating active lifestyle campuses throughout California and beyond.
“Each campus will offer members a well-curated assortment of luxury amenities and services too vast to be offered at any single location,” Stevens added.
The Bay Club currently has more than 55,000 members at its eleven locations across six campuses throughout California, the company said. Current amenities at its locations include the Seventy-Seven bar lounge, Connect workplace suites and Sanctuary Spas, along with squash, tennis, and aquatic centers. In addition, bocce courts, fire pits, outdoor bars and water slides are featured throughout the campuses.
“The Bay Club Company is poised for growth, as well as further developing existing active lifestyle campuses,” Stevens said. “Our main priority is to provide our members with even greater lifestyle benefits while expanding throughout California and beyond.
“At The Bay Club Company, we talk a lot about happiness—what it is and how we can help our members achieve it—[and] our brand revolves around that concept,” Stevens added. “With our new ownership structure, we are ideally positioned to achieve the next level of hospitality for our active lifestyle campuses. Our goal is to create an environment that allows members and their loved ones to experience being their happiest selves.”