Inside the booming business of wellness clubs and third spaces
A few years ago, Grace Guo began craving places in New York City where hanging out with friends didn’t require alcohol.
Newly sober and surrounded by friends who choose not to drink, Guo said he wanted alternatives to the typical social scene. After doing some research, she landed on Bathhouse and Othership: social wellness clubs designed to create communities to improve health.
“Honestly, it feels like going to the spa and spending an afternoon together. I think for me, it feels a lot better than staying out late at night,” Guo told CNBC.
He’s one of a growing number of people who are looking to membership clubs and other venues that are structured around maintaining health while also acting as a place to foster connection.
And these areas are also becoming thriving businesses. Bathhouse, which opened in Brooklyn, New York, in 2019, told CNBC exclusively that it expects to generate approximately $120 million in revenue by the end of this year. Like Othership, he refused to disclose his other financials.
Most such companies are privately owned, but publicly traded gym chain Life Time also began doubling down on premium health care a few years ago. While investors initially disliked this reallocation of resources, it’s now paying off, with Life Time’s shares more than doubling since October 2023.
Companies old and new are trying to reach consumers like Guo. The 31-year-old man said that he sees an increasing focus on health, wellness and peace in his own social life and in those around him, and with this focus, he searches for so-called third spaces.
“Where can I go to try to connect to a community or express a particular interest that I have and find like-minded people?” I think like. Guo said. “It’s finding a group of like-minded people, but also having the space and innovation to try something or pursue something.”
Between spending time in the sauna and soaking in cold water at Othership and choosing a popular evening time slot, Guo said the health-focused socializing environment appealed to him.
“Having a space that shocks us in a way that takes us out of our routine and complacency is really important, and I think probably the biggest thing is that it overcomes a lot of the inertia that comes with doing things,” Guo said.
‘Loneliness is an epidemic’
bath pools
Source: Turkish Bath
The concept of third space is not new. The term was first used by sociologist Ray Oldenburg in his 1989 book “The Great Good Place” to refer to places outside the home (the first place) and work (the second place) where people gather and establish relationships.
This definition has come to include places like neighborhood coffeehouses, libraries, bars, and more, where people from different backgrounds come together in an informal setting where barriers to access are relatively low.
However, in the last few years, this definition has evolved and the importance of third spaces has emerged.
Richard Kyte, a professor at Viterbo University in Wisconsin and author of “Finding Your Third Place,” said he’s been teaching third places for nearly two decades, but it’s only in the last few years that he’s noticed the term becoming mainstream.
Kyte said this turning point also coincided with the pandemic that sent the world into quarantine and virtually eliminated social gatherings for a while, but redefined them in the long run.
“Then all of a sudden we started talking more about the cost of loneliness, the cost of social isolation. We really realized during the pandemic that that wasn’t healthy,” Kyte told CNBC. “And at the same time we were realizing we needed more of these places, we were also seeing a lot of them closing. That sparked a resurgence of interest.”
He added that this is a trend that is also compounded by an increasingly digital-oriented society, as younger generations crave more than social media connections despite the rise of artificial intelligence and chatbots.
“We have a huge investment in technology that increases the ease and desirability of being independent,” Kyte said, referring to artificial intelligence companies promoting products that act like friends. “When you have people turning to their screens more instead of seeking fulfillment through social interaction, that takes all those people out of the pool.”
According to Cigna’s 2025 “Loneliness in America” report67% of Gen Zers and 65% of Millennials reported feeling lonely. 2024 Harvard study It found that 67% of adults feel social and emotional loneliness because they are not part of meaningful groups.
While struggling with this isolation, Harry Taylor first founded Othership with his wife and friends to create a space that included the healthy living trend.
“We know there’s a huge market for people to meet other people. Loneliness is an epidemic right now,” Taylor told CNBC. “By doing this, we realized that people have the capacity to come together and just be themselves and be vulnerable.”
What is old is new
Third spaces have evolved to cover specific purposes, as some membership clubs can generate thousands of dollars a month, often justifying the price tag that comes with them.
Wellness, in particular, has experienced a recent boom and Here are the best categories for souvenirs from last holiday season. Equinox president Harvey Spevak told CNBC last month that “wellness is the new luxury,” and the global wellness market is expected to reach nearly $10 trillion by 2030, according to estimates from the Global Wellness Institute.
Operating approximately 90,000 square feet of facilities in New York City, Bathhouse offers a wellness experience rooted in Europe’s bathhouse heritage. The area features both guided and self-guided saunas and cold plunge pools, starting at $40 for a walk-in session. The company’s two New York locations see approximately 1,000 customers each day.
“It was really clear, especially in America, that there wasn’t a bathhouse-like concept for the modern consumer,” co-founder Travis Talmadge told CNBC.
Talmadge said he and his co-founder are focused on creating a human experience, utilizing each individual’s body, while also building community around shared activities.
“Our spaces are really large-scale, so one of the nice things is that with so many people moving around, everyone feels like a background player on set,” Talmadge said. “You can have really personal time by yourself or with someone else, but you’re in an environment with lots of people doing the same thing.”
Talmadge said the company sees “excess demand” and operates at a “very healthy margin,” with plans to open seven more locations by 2027.
It’s just one of many wellness areas that are growing in popularity.
Otherness also draws on the wellness mindset, combining practices from various cultures to address “physical, mental, emotional and spiritual” issues. They have locations in New York and Canada with plans for further growth.
At Othership, members can choose from three options: A free-flow session designed to allow members to use the space as they wish; classes ranging from group-led activities to saunas and cold dips; and imitating non-alcoholic clubs in an effort to have a presence on social media.
Co-founder Taylor said that through Othership, he has seen customers create new groups of friends, propose to their partners in the sauna, and find belonging to others while also improving their own health.
Creating alcohol-free spaces was one of the goals of Othership’s founders when creating the vision. Othership now hosts comedians, live musicians and more in its saunas to emulate similar venues in big cities often associated with alcohol.
“There is so much social media that gives us the false perception that there is social engagement and interaction, but what many of us have experienced is drifting towards doom, in fact it is almost doing the opposite,” Taylor said. “There’s a void after the social fulfillment that we all need as humans, so coming together and being that real with each other really creates a deep sense of belonging.”
Community building
Glo30 skin care studio.
Courtesy: Arleen Lamba
Wellness communities can form in other ways, too. Glo30, a membership studio with locations nationwide founded 13 years ago, offers members personalized skin care treatments every 30 days and creates a cohesive schedule with other members to foster community.
“Building community isn’t just about getting results, it’s about [feeling] “It’s good, but also having common ground in their experiences and being able to share what they’re feeling,” Glo30 founder and CEO Arleen Lamba told CNBC.
While urban cities like New York and Los Angeles are experiencing a boom in wellness clubs, Lamba said the more than 100 locations in places like Texas, Arizona, North Carolina and more represent the in-between places.
Lamba said every Glo30 appointment is scheduled at the same time at each location to create more opportunities for social connection.
“As people enter the studio, people leave the studio, and we know that they will get to know each other and actually make new friends,” he said, adding that the company has seen an increasing number of social groups forming in its treatment rooms, especially in the post-pandemic period.
Lamba said he’s seen the desire for social connection grow with the rise of social media, but community building can often happen in non-traditional places like Glo30. At the same time, he said, social interaction is not as “overwhelming” as other venues, such as parties or large group events, and allows for intimate socialization.
Lamba said that in the last two years, the number of Glo30’s franchise units under development has increased by 67.5% due to greater demand for its services.
The explosion of third spaces goes beyond healthy living. Special restaurant memberships, Gyms, creative spaces, social clubs and more are growing in popularity as consumers look for ways to build community outside of their homes and offices.
Lamba said Glo30 sees every type of customer base at the company’s locations, from families to sororities to couples.
“The third area is interesting because it creates a real connection,” he said. “We witness someone’s life – its ups, its lows, its middles – and we are constant, and to me that’s what the third space is about: No matter what kind of day you have there, good, bad or middle, this space is yours. And when you come to this space, people will know you, see you, appreciate you and be glad you’re there.”
