Aspria - The Investment Case

Aspria - Investment Highlights
On behalf of Aspria Holdings B.V. (“Aspria”) and its shareholders, there now exists the opportunity
for a new investor to acquire a strategic majority interest in Aspria and to explore financing options to
support its on-going growth. Aspria presents a unique opportunity for an investor to invest in:
• A premium European based, award-winning brand in a sector focussing on Health and Well-being
that is poised for significant global expansion and long term, reliable returns in the premium
segment
• The health and well-being sector, fuelled by an individual’s motivation, an ever-growing and
ageing population as well as geo-political and public welfare pressure, where the accent is on
improving quality of life
• A unique combination of family friendly, business, and lifestyle offering in a health related sector
• A stable European business platform, in prestigious locations and with high barriers to entry
• A pipeline of contracted and/or identified clubs and hotels in key European cities coupled with an
exemplary track record in site identification and development
• Existing partnerships, IP protection and a professional network to enable expansion into global
markets including specifically targetted Middle and Far Eastern markets
• A business where supplementing operational management expertise will fuel and quickly
accelerate organic growth
Aspria Vision and Mission
Aspria has recognised that there is an important place in the world of healthy hospitality where we
can take a leading position. To create something special for our members and guests that
provides them with the expert knowledge and advice needed to achieve their goals.
Thanks to advances in medical science, nutrition and sanitation, man is living longer than ever
before. However, the pace of life has also dramatically increased and we are exposed to
different stresses and strains compared to the past. As a consequence, our bodies will have to
endure more than any previous generation despite all the labour saving devices that promised to
make our lives easier and less demanding.
As fast as the World is moving forward, our knowledge also develops further and with it, the
possibility to know more about our physical and emotional needs than at any time in our history.
The physiology of a human is complex, fascinating and more than ever, the ability to understand
our bodies, satisfy our needs and live a healthier and more fulfilling life is at our finger-tips.
We are living in exciting times and with the help of expert knowledge and advice, we can all live
healthier and richer lives.
Our mission is therefore simple ... it is to be the best club company in the World.
“At Aspria, our aim is to provide an exclusive and high quality
service environment for our members and their guests.
We create clubs where members feel at home. After work or home, the
club will represent their ‘third place’. A place where they enjoy spending
time and feel they belong.
Here, individuals as well as families can participate in a full range of
cultural, sporting, relaxational and social activities, all in one single
stylish location.
Many of our clubs are also convenient destinations to stay in the City
for business or pleasure, either as a base from which to explore or
somewhere to relax and recharge. In this modern, fast-paced world,
there need to be havens of quality and calm, where business is a
pleasure and where style meets professionalism.
Starting from our origins in Europe, Aspria is expanding in key cities
and countries around the World and our members are able to use our
network of clubs wherever they travel.
Brian L Morris
Co-Founder and Chief Executive Officer
We are pleased to have been recognised as a leader in providing
healthy hospitality for our members and guests and the many awards
that we have won are testament to a highly professional team of
dedicated, multi-cultural and multi-lingual staff of which I am truly
proud. They will continue to provide excellent service to our thousands
of discerning individual and family members, corporate partners and
valued guests and we look forward to expanding our network of clubs
in the years ahead.”
Aspria - The Origins
The foundations of the current
business were laid in the UK during
the 1980’s and 1990’s through the
development of the successful
Riverside Racquet Centres and
Espree Executive Health Club
businesses.
Later supplemented with the
operation of the famous Chelsea
Harbour Club with its illustrious
membership including HRH
Princess Diana and Princes William
and Harry, the founders of Aspria,
Peter Beckwith OBE and Brian
Morris (CEO), have drawn on their
success in the UK in order to
develop the pre-eminent group of
premium clubs in Europe.
Espree
Executive Health Clubs
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Aspria is Healthy Hospitality
Aspria currently operates 8 unique
members’ clubs specialising in culture,
business, sport and well-being across
continental Europe.
Averaging c. 10,000 sqm (c.110,000
sq.ft) Aspria delivers exceptional
service and expertise to over 39,000
members in Belgium, Germany and Italy.
The Group boasts industry-leading
membership retention and referral rates.
Aspria counts amongst its valued
members, Royal Families, Prime
Ministers, Politicians, many stars of
stage and screen as well as a host of
business owners and CEO’s.
Non-members are welcome to enjoy the
luxurious spas and high quality hotel
accommodation is available at selected
clubs.
The clubs become an intrinsic part of the
local society, being gently adopted by
the neighbourhood and the community.
Aspria also supports important local
charities and young sporting talent
building a strong bond with its members.
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Aspria - The Principles
The founders of Aspria have chosen
to develop and operate within a
high-end niche of a rapidly expanding
global healthy hospitality industry.
Targetting a combination of
European cities and also higher
growth sites in stable but progressive
countries, provides not only robust
earnings and extensive growth
opportunities but longevity of returns
for decades.
Aspria is built on the premise of
quality rather than quantity, exploiting
unique locations and a rare talent for
site identification and cost effective
development.
The Group represents a unique
collection of clubs.
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Aspria - Selected Recognition Highlights
Aspria Berlin - Number one Spa/Leisure/Fitness Club in
Germany 2008/2009
Aspria Avenue Louise - Number one Club in Brussels
Aspria Avenue Louise
: Europe’s No.1 Club, 2010
Aspria Harbour Club Milan : Europe’s No.1 Club, 2011
Aspria Uhlenhorst
: Europe’s Finest Hotel, 2012
Trip Advisor
: Travellers Choice Award 2012
Kate Cracknell (Editor) - “This is not just a club. This is an Aspria club. If
I’ve sounded effusive so far ... this has to be one of the best clubs I’ve
visited to date, both for its top class facilities and for its immaculate
standards of service.”
Quintessentially, the leading concierge organisation has chosen Aspria
Avenue Louise as its key Brussels partner club, recommended to its
affluent and desirable membership.
Aspria Hannover and Berlin - Condé Nast Traveller - commended as
Leading Spas of the World
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Aspria - a reputation for excellence in development
Often working on projects involving
sensitive historic sites or in partnership with
pre-eminent organisations, famous clubs
and sporting institutions, the senior
management behind Aspria have a unique
track record and enviable reputation in the
development of its prestigious clubs.
Aspria creates unique clubs and has
formed a collection rather than a chain.
Special in character and design, an
Aspria club will be like no other.
1890 - Klipper Founded
Solvay Mansion - 1900
What makes Aspria so different is:
Attention to detail,
Quality of Design and Development,
Development management expertise,
St Edward’s School - 1863
Exemplary track record,
Expert Financial Modelling
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The Aspria Collection
Belgium, Germany & Italy
Maschsee Hannover
Avenue Louise Brussels
Arts-Loi Brussels
Royal La Rasante Brussels
Alstertal* Hamburg
* Freehold property, all other Clubs Leasehold
Ku’damm Berlin
Uhlenhorst Hamburg
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Harbour Club Milan
The Place for Well-being
Today’s hectic pace of life makes it more
important than ever to take some time out
for yourself. Aspria is a place where you can
truly relax and embrace a complete approach
to healthy living through sports, fitness,
relaxation, spa, nutrition and
education.
Aspria is the market leader in providing
well-being for all age groups and levels.
Aspria’s spas have won awards for their
exceptional quality and are also open to day
guests.
For an uplifting experience, Aspria’s
professional therapists can help select the
latest treatment to rejuvenate the body and
restore peace of mind.
The Group delivers over 40,000 treatments
and therapies per annum by highly-trained
health and beauty professionals.
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The Place for Well-being
Aspria’s pioneering holistic and health
system is called ‘AspriaPro’. Recently
launched at selected Aspria clubs,
members can now take advantage of
a completely personalised healthcare
service which, at this level, is unique in
Europe.
The membership journey in the club will
begin with a comprehensive ‘AspriaPro’
Assessment that is included in the
membership fee.
This highly personalised consultation is
performed by a specialist health
professional and is medically designed
to help members get the most out of
their Aspria Membership. Through
intelligent medical and physiological
testing, members can set new goals for
their training and discuss ways of
using all the club services and facilities
to maximise their personal well-being.
The results are truly impressive.
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The Place for Sport
Alongside an extensive selection of
classes, all Aspria clubs have the most
modern Technogym® equipment as part
of a unique partnership agreement. But
it is the Group’s constant quest to find the
best new methods that set it apart: Aspria
is dedicated to giving members the widest
possible range of options.
Aspria’s clubs offer up to 190 classes per
week which is the most extensive
schedule in Europe and these are
reviewed frequently, to ensure that they
reflect what is current and exciting in the
industry as well as its members’ regular
needs.
All Aspria clubs have spacious fitness
areas with a wide range of equipment,
functional training and free weights
together with expert and professional
trainers. In addition, some clubs have
outdoor sports facilities for tennis, hockey,
beach volley ball, other team sports and
indoor sports halls.
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The Place for Sport
Aspria has an established sporting tradition
and offers options to suit everyone: adults
or children, team sports or individual,
beginners or experienced athletes, indoors
or out.
Each club is different, but you may find
tennis, swimming, beach volleyball or
badminton, as well as a range of sports for
children to try out.
Its trusted team of professional trainers
boast some of the highest qualifications in
the industry and their expertise and
experience is of great value to our
members. We inspire our members to try
new sports and leisure activities.
Aspria’s state of the art fitness facilities
support its professional trainers to help
members train for their chosen sports.
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The Place for Families
A safe, secure and family friendly
environment, ensures that Aspria clubs
are welcoming to both families as well as
individuals and adult members without
children. Careful design also provides
intelligent segregation of children and
adult spaces that are then free from
younger voices.
Club’s featuring family membership have
traditionally shown higher retention rates
than non-family clubs.
7 out of 8 Aspria clubs feature family
membership programmes and Aspria
takes care of over 6,000 junior members
from 3 months to 17 years old.
The aim has always been to educate
rather than simply entertain Aspria’s
youngest members and clubs run up to
50 classes a week for children of all ages
in programmes that co-ordinate with their
parent’s adult class timetable.
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The Place for Culture
A vibrant and varied culture is one of the things which
makes life in Europe so enjoyable. Whether members
are at home or visiting, Aspria will always help them
make the most of everything each city has to offer.
Within the clubs, Aspria provides a programme of
inspiring and original cultural events from musical
recitals to book readings, vernissages to opera at La
Scala, Milan through its special relationship.
All such events are designed to enrich members lives
and bring them together with people who share their
interests.
Aspria might offer a private view at one of the latest art
exhibitions, with a talk by the artist explaining his
inspiration and creative process. Alternatively, Aspria
could bring a local musician, author or theatre
director into the club, giving personal access to the stars
of today as well as those of the future.
All this is in addition to Aspria’s regular social calendar
of networking evenings, parties, celebrations, sporting
and restaurant events, business gatherings and wine
tastings.
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The Place to Stay
Aspria now has four high
standard 4 and 5 star hotels
and lodges totalling 129 rooms.
Each provides stylish and
comfortable Club Rooms
reflecting the character of the
individual location.
Aspria’s Club Rooms offer hotel
accommodation where guests
have full access to first class
spa, sports and business
facilities within the club and all
benefit from impeccable
standards of service throughout.
In 2012, Aspria welcomed over
37,000 guests and achieved
high occupancies with many
repeat visitors. The
performance in 2013 is set to
comfortably exceed 2012
occupancy.
Aspria Royal La Rasante
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The Place to Stay
Aspria Ku’damm’s (Berlin) 42 room hotel and
club blends the comfort of a contemporary
city hotel with the largest sports and wellness
offering in Germany, creating an exceptional
experience.
Aspria Royal La Rasante (Brussels) boasts
sports, spa and 19 stylish rooms and suites
in Belgium’s premier club and all set in
beautifully landscaped gardens.
On the banks of the Maschsee and with
stunning lake views, Aspria Hannover’s 20
rooms invite guests to enjoy a unique
combination of stylish accommodation, the
Group’s largest spa and a wealth of sports,
creating an incomparable wellness
experience.
Aspria Berlin
Aspria Uhlenhorst (Hamburg) is the new
definition of the traditional club concept. A
place that brings together culture, business,
sport and well-being with contemporary style
and welcomes guests in 48 beautifully
designed hotel rooms and suites.
Aspria Uhlenhorst
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The Place for Business
A strong commitment to exceptional customer service means
that Aspria can meet Member’s business needs effectively on
every level.
Not only can Aspria clubs provide the perfect conference venue
with first class management and facilities but Aspria can also
help Members meet the right people in a relaxed and
welcoming environment.
Aspria welcomes company memberships, which can act as
attractive corporate incentives for the most highly valued
employees, as demonstrated by its numerous corporate clients.
Aspria has developed over 200 corporate partnerships across
the Group with many ‘blue-chip’, international organisations.
Aspria’s business networking events bring people together,
whether our members have just moved to a new city or spent
their whole lives there.
Aspria welcomes members using the club as a base for some
quiet work, business lunches or informal meetings, as well as
supporting them with special events, product launches and
meeting rooms.
Aspria is the ideal location for effective team building exercises
making use of its fantastic sports, fitness and spa areas.
Aspria partner’s organisations who wish to improve the health
and productivity of their management teams are now taking
advantage of the AspriaPro health assessment and lifestyle
programme.
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Aspria - The Investment Case se
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Aspria Current and Future Performance
Aspria - The Investment Case
100
90
80,025
80
€m
89,342
71,759
70
60
85,016
57,199
53,828
The Aspria Group currently has an
annual turnover approaching €60m
and an actual and projected
profitability as shown.
The profitability shown here is only
that generated by the existing 8
clubs.
63,049
50
40
30
20
10
2,460
3,128
6,291
11,007
18,627
15,724
20,899
0
2012A
2013D
'As is' Revenue
2014E
'As is' EBITDA
2015E
2016E
Operational Improvements
2017E
Expansion
2018E
There is a substantial opportunity to
grow both revenues and
profitability through identified,
selected and limited improvements to
the existing business.
Immediate operational improvements
are expected to enhance existing
revenues and profitability by c.25%
and are shown in pale green at an
estimated cost of €5m.
Larger club enhancements projects,
at a cost in the region of €22m could
generate significant additional growth
as shown in green.
Source: Aspria Management
Post Corporate Overhead
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Strong Growth Plans
Aspria - The Investment Case
Aspria is committed to growing and improving its business over the next 5-7 years. The target is to consolidate and improve the
existing European platform by adding 2-5 clubs and hotels in key cities.
In parallel, it is intended to commence development and operation of clubs in targetted Middle and Far Eastern markets that have
been the subject of careful research. This expansion will be undertaken with strategic local partners in order to leverage local
knowledge and connections as well as limit the capital required.
In turn, the reduced capital requirement will speed growth and improve returns in the operating business.
Further work to develop a global network of clubs would continue as the brand develops with consideration of the Americas (North
& South) as the next markets to be exploited.
Aspria’s current platform of maturing European clubs ensures that it is ideally placed to grow further from a position of strength
and stability.
A roll out model based on three decades of club development and operating experience shows the following expected financial
returns from new club develoment:
Typical PropCo development returns
(i) >8.5% running yield
(ii) 15% - 20% IRR
OpCo ROCE
(iii) 20% - 25% IRR
Notes
(i) Running yield = Typical Rent / Gross Development Cost
(ii) Assuming an exit in five years
(iii) Assuming €5m initial investment and an exit in year 5.
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Aspria in the Future
Aspria - The Investment Case
• A Global Network. Aspria has protected the IP
concerning a new overarching brand and mark to
cover and reinforce the Group’s global aspirations.
• Aspria will be a consolidated group with 10-15
clubs in key European cities within the next 2-5
years. The delivery of the anticipated 25%-30%
improvement in profitability from the existing clubs
will provide the strong and stable foundation for
wider Global expansion.
• Aspria will have exploited important relationships
in the Middle and Far East. It will have secured,
developed or be operating 4-10 clubs in key
cities within 5-7 years. Operating via partnerships
or franchise arrangements, the Group will expand
across continents to create a true Global club
network, serving the increasingly mobile and world
aware individual as well as discerning local
members.
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Disclaimer
This Teaser (the “Teaser”), has been drawn up by Aspria Holdings B.V., its shareholders and its advisors, KBC Securities N.V., (“KBC Securities”) and
Global Leisure Partners LLP (“GLP”, and along with KBC the “Advisors”).
The Teaser is strictly confidential and may not be copied, summarized, disclosed, mentioned, described to, or constitute a reference for, any third party.
This information is communicated specifically to you for the purpose of deciding whether to proceed with an investigation of the business described in this
document with a view to investing in such business. This Teaser is not intended to make an assessment on the transaction described herein (the “Proposed
Transaction”) and therefore the Advisors do not take any responsibility whatsoever with regard to the feasibility and suitability of the same. This Teaser can
neither be interpreted as an evaluation, a fairness opinion and/or a declaration of the reasonability of the Transaction, nor can be used by anyone,
including without limitation, any advisor, independent expert and/or accountant, as the basis of any financial analysis and/or feasibility analysis on the same.
This Teaser is based on data and it uses methodologies and criteria which could have been different and/or led to different outcomes.
The information and data on which this Teaser is based have been provided by Aspria Holdings B.V. and its Shareholders and/or are in the public domain
and have not been independently verified by the Advisors. The Advisors therefore do not take any responsibility for having or not having carried out any
inquiry, analysis and/or independent due diligence exercises with regard to the information contained in this Teaser. This Teaser is not intended to be
exhaustive or contain all the information which may be necessary for rendering an assessment on the Transaction.
In addition, the information and data contained in this Teaser do not replace the assessments and analysis which have to be carried out autonomously by
the recipient. The Shareholders shall not be liable for reliance placed on any information contained in the document provided as it is for information
purposes and is purely indicative and does not have any legal value. The Shareholders reserve the right, at its sole discretion, to amend, cancel and in any
other way alter any aspect of the documentation provided.
This Teaser does not constitute a recommendation of any nature whatsoever, or an invitation to investment or disinvestment and neither it does constitute
an offer to the public nor a contractual offer, a solicitation, nor does it contain any undertaking, of any nature whatsoever, by the Shareholders and/or by the
Advisors. The information and data contained in this Teaser neither constitute an expression of contractual will nor originate any kind of responsibility, also
as a pre-contractual liability, by the Shareholders, the Advisors and/or its respective representatives.
Tomas Cifra
Tel: +32 2 429 21 38
[email protected]
David Bains
Tel: +44 (0) 20 7016 8065
[email protected]
“You can’t be
remarkable by following
someone else who is
remarkable… The thing
that all great
companies have in
common is that they
have nothing in
common”. (Seth Godin,
Purple Cow)

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