Wellness Clubs Boom as People Seek ‘Third Spaces’ to Combat Loneliness
The pursuit of wellness is no longer confined to gyms and spas. A growing number of consumers are seeking out “third spaces”—establishments that foster both physical health and social connection—and businesses are taking notice. These membership-based clubs, offering everything from saunas and cold plunges to skincare treatments and community events, are experiencing a boom, with some projecting substantial revenue growth.
Grace Guo, a 31-year-old New Yorker, exemplifies this trend. After choosing sobriety, she sought alternatives to alcohol-centric social gatherings. “Honestly, it kind of just feels like going to a spa together and spending an afternoon together,” Guo told CNBC, describing her experiences at Bathhouse and Othership. “I think for me, it just feels much better rather than staying out late at night.” Her experience reflects a broader desire for spaces that prioritize well-being and genuine connection.
A Booming Market
The financial implications of this shift are significant. Bathhouse, which opened in Brooklyn in 2019, anticipates reaching $120 million in run rate revenue by the end of . While Othership declined to disclose its financials, the success of these privately held companies is prompting larger players to adapt. Life Time, a publicly traded gym chain, has doubled down on “premium wellness” in recent years, and its stock has more than doubled since , suggesting investor confidence in this strategy.
The appeal extends beyond simply offering wellness services. These spaces are intentionally designed to cultivate community. At Othership, members can participate in free-flow sessions, guided classes combining saunas and cold plunges, or “socials”—events designed to mimic the atmosphere of traditional social clubs without the reliance on alcohol. Co-founder Harry Taylor noted the company’s aim to create a space where people can “just be themselves, be vulnerable,” and form meaningful connections.
The Evolution of ‘Third Spaces’
The concept of “third spaces” isn’t new. Sociologist Ray Oldenburg coined the term in his book, “The Great Good Place,” to describe locations outside of home and work where people gather and build relationships—coffee shops, libraries, and parks, for example. However, the pandemic and the rise of digital interaction have reshaped the meaning and importance of these spaces.
Richard Kyte, a professor at Viterbo University and author of “Finding Your Third Place,” observed that interest in the concept has surged in recent years. “During that time, all of a sudden, we were talking more about the cost of loneliness, the cost of social isolation,” he told CNBC. “It really came home to us during the pandemic that this was not healthy.” The pandemic, coupled with an increasingly digital world, has fueled a renewed appreciation for in-person connection.
Addressing a Loneliness Epidemic
Data underscores the growing need for these spaces. Cigna’s “Loneliness in America” report found that 67% of Gen Zers and 65% of millennials report feeling lonely. A Harvard survey revealed that 67% of adults experience social and emotional loneliness due to a lack of meaningful group affiliation. This “loneliness epidemic,” as described by former Surgeon General Vivek Murthy, has profound implications for both physical and mental health.
The modern wellness club responds to this need by offering a curated environment that encourages vulnerability and presence. Glo30, a skincare studio with over 100 locations, exemplifies this approach. Founder and CEO Arleen Lamba explained that Glo30’s appointment scheduling—every hour on the hour—is designed to maximize opportunities for social interaction. “We get to be witness to someone’s life—their highs, their lows, their middles—and we are the constant,” Lamba said. “That, to me, is what the third space is about.”
Wellness as a Luxury
The rise of wellness as a key driver of this trend is also noteworthy. Equinox chairman Harvey Spevak recently stated that “health is the new luxury,” and the global wellness market is projected to reach nearly $10 trillion by , according to the Global Wellness Institute. This shift is reflected in the offerings of companies like Bathhouse, which draws on the European bathhouse tradition, and Othership, which incorporates practices from various cultures.
Bathhouse, with its roughly 90,000 square feet of facilities in New York City, offers saunas, cold plunges, and guided sessions, attracting approximately 1,000 customers daily. Co-founder Travis Talmadge emphasized the importance of creating a “human experience” that taps into the body while fostering community. The company plans to open seven more locations by .
Glo30’s franchise unit development has grown 67.5% in the past two years, indicating strong demand for its services. The company’s success demonstrates that the craving for social connection extends beyond major urban centers, reaching communities in states like Texas, Arizona, and North Carolina.
The boom in third spaces extends beyond wellness, encompassing exclusive restaurants, gyms, creative spaces, and social clubs. These establishments cater to a growing desire for community and belonging in a world increasingly characterized by digital interaction and social isolation. The success of these businesses suggests that the need for genuine human connection remains a powerful force in the market.