Entrepreneur and former CEO of Holmes Place Iberia, Nick Coutts, is to launch his new budget club venture in Portugal this month.

The first Fitness Hut club will open in central Lisbon next week with a further two sites due to open by the end of 2011.

Future plans include six to ten clubs each year in Portugal and expansion into the Spanish market during 2012. Coutts also hinted that entry to the UK and European markets is possible, as well as establishing the brand in Brazil.

Although the concept is based on a low-cost model, Coutts says the Fitness Hut strategy will not be based entirely on price.

"The brand will be based on a premium low cost model, but we are not going into the market solely to be the cheapest on price," he said.

"We want to exceed expectations at every level - in terms of the design, quality of equipment, fitness instructors and class schedules, as well as the club's social element.

"We'll be a third of the price of the high-end brands and half the price of the middle market chains."

Each club will be a minimum 20,000sq ft with 8,000sq ft dedicated to the gym floor. There will be three group classes, a sprint track, a fight zone with tatami mats and a functional training area that can also be used by personal trainers.

Equipment at the clubs will be at the higher end, with Keiser Infinity and Star Trac's E-Spinner ranges.

Fitness Hut is run by three directors - Coutts, Andre Groen (expansion and development director) and JP Carvalho (sales and marketing director). The venture is financed by Banco Popular with private equity company EDGE Capital also providing funding.

For the full interview with Nick Coutts, please click here for Leisure Management, Issue 4 2011, p.26.