The sport of pickleball has experienced a massive surge in popularity in recent years, particularly during the Covid lockdown. This surge has continued even after lockdown measures were lifted, with more players joining at all levels. According to Bank of America analyst Alexander Perry, the sport has seen a 53% increase in total players in the U.S. in 2023, reaching a staggering 13.6 million participants.
Life Time Group Holdings, an upscale fitness and lifestyle company, has emerged as a major beneficiary of the pickleball phenomenon. The company, which is the largest provider of pickleball in the U.S., has strategically positioned itself to take advantage of the sport’s rapid growth. With over 700 permanent pickleball courts and plans to expand to 1,000 courts by the end of 2025, Life Time is clearly investing heavily in this trend.
Analyst Alexander Perry has reiterated his buy rating on Life Time Group Holdings, citing the company’s strong second-quarter results and increased financial guidance for the year. This optimism has propelled the stock price up by more than 56% this year, with expectations of a potential 27% jump in the near future. Additionally, Life Time has reported that membership demand exceeds club capacity, allowing them to increase prices and reduce membership churn.
Life Time CEO Bahram Akradi revealed that the company has already invested up to $100 million in pickleball, showcasing a commitment to the sport. Not only has the company expanded its number of pickleball courts and sessions significantly, but it has also developed a unique ball specifically for pickleball play. Furthermore, Life Time hosts professional tournaments for Major League Pickleball and the Professional Pickleball Association, solidifying its presence in the pickleball community.
The rise of pickleball has not only created opportunities for individuals to engage in a fun and competitive sport but has also benefitted companies like Life Time Group Holdings. With strategic investments, expansion plans, and a commitment to innovation, Life Time has established itself as a key player in the growing pickleball market.