In the latest move in its evolution from brewer to modern lifestyle business, Whitbread has announced a £500m investment in the David Lloyd health and fitness chain.

Whitbread plans to double the David Lloyd portfolio to 100 clubs over the next five years, maintaining its position as the UK's largest health and fitness brand.

The investment aims to double David Lloyd membership to 500,000 and will create an estimated 4,000 extra jobs.

David Lloyd managing director, Stewart Miller, denies the market is saturated: In a sector which is growing at around 25 per cent a year, there is clear room for expansion. We will strengthen our position in the market by delivering our winning formula to a truly national audience, creating the first household name brand in health and fitness.

Whitbread acquired the then 14-strong chain in 1995 for £200m and has expanded it to 48 large clubs. Eight clubs are scheduled to open next year in Manchester, London and Surrey, with accelerated openings nationwide over the five years.

Yesterday Sir Richard Branson announced a £100m investment in strengthening the Virgin Active chain to become 'a top player' in the sector.