The Empty Promises of Equinox

In 1991 Danny Errico and his family founded a small fitness club on the Upper West Side of Manhattan called Equinox. They developed a nice business, opened five locations, and emphasized the importance of having a high-quality fitness experience. In the year 2000 the firm was bought out by a group of investors and in 2005 The Related Group, one of the largest real estate development firms in the US, acquired a majority stake in the business for $500 million. After surveying their clients and learning that having access to a high-quality fitness club was a top priority, The Related Group began using…