The Journey of Revitalizing 24 Hour Fitness: Insights from Bob Berlin

Bob Berlin, the founder and managing partner of LongRange Capital, embarked on a unique journey that ultimately led to the acquisition of 24 Hour Fitness. With a decade of experience observing this gym chain’s ups and downs, Berlin’s strategic insights offer valuable lessons for anyone interested in fitness investments or improving their own fitness journey.

Initially considering the acquisition over ten years ago, Berlin recalled, “It was at a valuation and in a process that wasn’t interesting for us.” At that time, 24 Hour Fitness had already changed private equity ownership twice and was facing significant challenges.

Fast forward to the summer of 2025, and Berlin found himself actively involved with 24 Hour Fitness. The company had successfully navigated a Chapter 11 restructuring by the end of 2020, successfully overcoming setbacks from the COVID-19 pandemic that led to several location closures. This time around, the investment opportunity was appealing.

Berlin noted, “We had the opportunity to partner with [founder] Mark Mastrov, and to assist [company CEO] Karl Sanft and the 24 Hour team on building upon the turnaround they initiated post-pandemic through further investment in the stores.” The commitment to enhancing the value of the gyms was key in their decision-making process.

LongRange Capital’s investment philosophy emphasizes finding companies that deliver value to customers, thereby increasing customer engagement and purchases. “We think our basis in the company is at an attractive level relative to the returns on investments within the existing stores and new locations,” Berlin explained. This strategic focus on customer value pushes the company toward meaningful growth.

The acquisition, finalized on December 31, injected significant value into LongRange’s portfolio, expanding into the multi-unit business space, an area where they previously had limited presence. Berlin’s prior experience in franchises, including notable investments in restaurants, lends credibility to their new venture.

However, challenges arose during the acquisition, particularly concerning complex real estate issues linked to operating across several states and multiple landlords. Berlin stressed, “Understanding the life cycle of [the real estate leases and trade areas] is fundamental with a multi-unit acquisition,” highlighting the intricate planning necessary for success in this venture.

Additionally, guiding a team that had experienced bankruptcy required a sensitive approach. To address this, former CEO Mastrov has returned in an executive role to steer the company through its transition, helping to rebuild morale and stability within a workforce still recovering from setbacks.

Berlin articulated the importance of re-investing in the business, stating, “What we invariably find is that often these businesses are underinvested. When you make those investments, it changes team members’ and customers’ perception. There really is a light, there is a future.” This renewed focus on growth is crucial for sustaining both employee and customer satisfaction.

Future goals for 24 Hour Fitness include enhancing existing locations, improving operating procedures, and ultimately attracting new and returning members. Berlin reiterated, “There are a number of places where we think it will be attractive,” as the company looks to rekindle its footprint in areas previously abandoned due to financial struggles.

In terms of business strategy, LongRange prefers holding onto investments for the long-term, typically between eight and ten years. “Our philosophy is to build a great business by delivering value to the customers over the medium term,” Berlin summarized. This approach not only boosts current operations but also helps create a sustainable business model for the future.

Conclusion

The revitalization of 24 Hour Fitness showcases that strategic investment and a focus on customer value can turn around a struggling business. By learning from past experiences and embracing new challenges, LongRange Capital is poised to lead 24 Hour Fitness into a brighter future. Fitness enthusiasts may not only find a renewed and improved experience at their local gyms but could also take inspiration from this journey, emphasizing resilience and strategic growth in their own fitness endeavors.