Will Life Time’s New Paradise Valley Luxury Project Shape LTH’s Integrated Wellness Living Narrative?

• Life Time Group Holdings and RED Development recently broke ground on Life Time Living Paradise Valley, an 11-story, 327-unit luxury residential project adjacent to a 92,000-square-foot athletic country club in Phoenix, with completion targeted for 2027.
• This project extends Life Time’s wellness-focused living concept and highlights its commitment to integrating wellness, fitness, and community experiences within large-scale mixed-use developments.
• We'll explore how Life Time’s Paradise Valley luxury residential expansion could influence its investment narrative and growth prospects.

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Life Time Group Holdings Investment Narrative Recap

To be a shareholder in Life Time Group Holdings, you need to believe in the long-term demand for premium, health-focused living experiences and the company's ability to deliver sustained club and ancillary revenue growth. The new Paradise Valley luxury residential project reinforces Life Time’s community-centric, luxury wellness positioning, but given its multi-year timeline, it is unlikely to materially influence the near-term catalyst of successfully delivering growth from ongoing club expansions or shift the biggest risk, which remains access to affordable real estate capital and exposure to rising interest rates.

Among recent announcements, the opening of Life Time Prudential Center in Boston is especially relevant, as it reflects the company's focus on expanding into affluent urban environments. Together with the new Paradise Valley project, these developments underscore Life Time’s reliance on scaling up premium large-format locations to support revenue growth, while also amplifying exposure to higher construction costs and capital intensity as a key operational risk.

In contrast, investors should be aware that Life Time’s ambitious expansion could be challenged by tighter real estate capital markets and the potential for...

Read the full narrative on Life Time Group Holdings (it's free!)

Life Time Group Holdings is projected to reach $3.8 billion in revenue and $457.9 million in earnings by 2028. This outlook depends on achieving a 10.7% annual revenue growth rate and an earnings increase of $231.1 million from the current earnings of $226.8 million.

Uncover how Life Time Group Holdings' forecasts yield a $39.91 fair value, a 59% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community put Life Time Group Holdings’ worth between US$34.25 and US$39.91. As members weigh these views, keep in mind that ongoing capital-intensive club expansions could have broad effects on future returns and support for premium positioning.

Explore 2 other fair value estimates on Life Time Group Holdings - why the stock might be worth as much as 59% more than the current price!

Build Your Own Life Time Group Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Life Time Group Holdings research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Life Time Group Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Life Time Group Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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