24 Hour Fitness has secured a $305 million senior secured credit facility from affiliates of The TCW Group, marking a key step in the gym operator’s ongoing efforts to improve its financial position and drive future growth.
The new financing is aimed at strengthening liquidity and addressing upcoming debt obligations. 24 Hour Fitness said the funds will help support long-term goals, including optimizing its club network and maintaining solid cash flow to fuel continued investment and innovation.
“This financing goes beyond a capital raise — it’s a strong vote of confidence in our business and operational progress,” said Karl Sanft, CEO of 24 Hour Fitness. “It gives us the flexibility to enhance our club portfolio and improve member experiences. Our leadership team is eager to build on the foundation we’ve established and take the company to new heights.”
Under Sanft’s leadership, which began in June 2022, 24 Hour Fitness has focused on upgrading its existing clubs and improving its financial health. The company has set itself apart from competitors by offering premium amenities such as pools, spas, steam rooms, and saunas.
“I’ve been focused on getting the company healthy from the inside out,” Sanft said last fall. “It’s not just about opening new clubs, but also about investing in the ones you already have. Refreshing and remodeling existing clubs can make a huge difference.”
With the new financing, TCW becomes 24 Hour Fitness’s largest lender. However, majority ownership of the company remains with Monarch Alternative Capital, Sculptor Capital Management, and Cyrus Capital Partners.
“24 Hour Fitness has made impressive strides in recent years, both operationally and financially,” said Patrick Fallon, managing principal at Monarch. “The capital from TCW reinforces our confidence in the company’s strategy, leadership team, and the tremendous opportunities ahead.”
In addition to financial improvements, 24 Hour Fitness has expanded its wellness offerings across select locations. Recent additions include Recovery24, a spa-inspired space with Hyperice Normatec compression therapy and Human Touch massage chairs, as well as Premium Fit24, which features connected strength equipment with built-in tutorials, adaptive programs, and workout tracking.
The company is also expanding its partnership with Dietitian Live after a successful 2024 pilot, bringing virtual access to registered dietitians to more than 250 locations. The service offers members personalized nutrition strategies to complement their fitness routines and support long-term wellness goals.
