I've been approached to move my studio inside a local health club. They have the usual menu of group classes, weights, cardio machines, spinning, pools, etc. They are very respected and have the largest membership in the city.

What can you share about this type a arrangement?

Any input will be helpful. Thank you

I have experience in putting a traditional Pilates studio in a Health club in my area and it has worked out well. But I will say that the owners were clients of mine first and were exposed to traditioanl Pilates and have modeled the studio accordingly.
I trained the instructors who all work at the club instructing fitness classes. Some of them have degrees in exercise science and/or dance backgrounds and also teaching experience in mat pilates and yoga.
They are continuing their education and all have committed to getting certified by either Power Pilates or Physical mind.
I guess it depeds on the intention of the studio and the gym owners in what direction it will take.

I want to continue I had a client and hit post before I was ready. Just wanted to let you know the studio is doing very well. We offer a mandatory foundation course of several private sessions to get people started.
The gym population is very eager to try the equipment, and I have been successful so far in educating them about the difference between Pilates and what they are acustomed to in the regualar fitness classes.
We do offer privates and have many people taking advantage of that as well as semi privates and classes. The studio is already making money for the club and it's only been open since Oct.
The instructors are trained to a high beginner level on the reformer, tower and chair. I worked with them at my studio on a daily basis for 6 month before the studio opened. I still train them and we are working toward intermediate level. but as I said they are all going to go forward with their training at established schools. There is also a Physical-mind fully certified instructor working at the studio. We offer a discount to members but the studio is also open to non-members and it has brought in a new revenue stream for the club.
I hope this gives you insight into your project,If done with thought and cooperation you and the club ownership can work together to make the studio profitable for both of you.
I want to add that this is not my studio, and I am working in this interest of the club, so that might make a difference, but I did start out renting space in a gym when I first opened in 2000. I Moved out 5 yeard ago to my current space.

I posted an article on this very topic on Pilates Digest.com.
I opened both of my locations within existing facilities, and one was insised a gym, the the other inside a PT studio.
The gym setting was great, and I made a partner program with the gym. I was able to teach one of their member only classes, which exposed me to new faces, and take non-members into the studio. See the attached link for more ideas on this.
I must say though, in my article I didn't really go over "cons" of this setting. At the time I wrote it, I was waiting for the facility to buy me out, and I didn't want to make waves. Gyms can be stinky, noisy, agressive and competitive places .... while most studios are serene, quiet and clean. Not every "GYM" is like this, but I encountered a lot of noise in my studio space and had to keep my introductory prices from 3 years ago, the same! Just an additional thought. If you are moving into a space and its in their interests, make sure they split costs like insurance, marketing, utilities, because otherwise you end up paying twice for those. And make sure you can use thier marketing database/member database to market to.
Good luck!

http://www.pilatesdigest.com/starting-a-new-business/