-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Uvd8rK02eYdfAs5T+otViREb6ce7GNScMb14FsB/t2l+xMMq+Awtir7JmiUDDZ8l
 pWPYp/ZJ5izZ01WXlPRE5w==

<SEC-DOCUMENT>0001182489-06-000621.txt : 20060608
<SEC-HEADER>0001182489-06-000621.hdr.sgml : 20060608
<ACCEPTANCE-DATETIME>20060608163959
ACCESSION NUMBER:		0001182489-06-000621
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060607
FILED AS OF DATE:		20060608
DATE AS OF CHANGE:		20060608

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TOWN SPORTS INTERNATIONAL HOLDINGS INC
		CENTRAL INDEX KEY:			0001281774
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MEMBERSHIP SPORTS & RECREATION CLUBS [7997]
		IRS NUMBER:				200640002
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	MAIL ADDRESS:	
		STREET 1:		888 SEVENTH AVE
		STREET 2:		25TH FL
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10106

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			TINICUM PARTNERS LP FARALLON
		CENTRAL INDEX KEY:			0001245631
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-52013
		FILM NUMBER:		06894427

	MAIL ADDRESS:	
		STREET 1:		C/O FARALLON CAPITAL MANAGEMENT
		STREET 2:		ONE MARTIME PLAZA STE 1325
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94111

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			FARALLON CAPITAL INSTITUTIONAL PARTNERS III LP
		CENTRAL INDEX KEY:			0001245629
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-52013
		FILM NUMBER:		06894428

	MAIL ADDRESS:	
		STREET 1:		C/O FARALLON CAPITAL MANAGEMENT
		STREET 2:		ONE MARTIME PLAZA STE 1325
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94111

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Farallon Capital Offshore Investors II, L.P.
		CENTRAL INDEX KEY:			0001340990
		STATE OF INCORPORATION:			E9
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-52013
		FILM NUMBER:		06894426

	BUSINESS ADDRESS:	
		STREET 1:		HARBOUR CENTRE
		STREET 2:		P.O. BOX 896
		CITY:			GEORGE TOWN, GRAND CAYMAN
		STATE:			E9
		ZIP:			00000
		BUSINESS PHONE:		(415) 421-2132

	MAIL ADDRESS:	
		STREET 1:		C/O FARALLON CAPITAL MANAGEMENT, L.L.C.
		STREET 2:		ONE MARITIME PLAZA, SUITE 1325
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94111
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 3 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2006-06-07</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001281774</issuerCik>
        <issuerName>TOWN SPORTS INTERNATIONAL HOLDINGS INC</issuerName>
        <issuerTradingSymbol>CLUB</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001245629</rptOwnerCik>
            <rptOwnerName>FARALLON CAPITAL INSTITUTIONAL PARTNERS III LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O FARALLON CAPITAL MANAGEMENT, L.L.C.</rptOwnerStreet1>
            <rptOwnerStreet2>ONE MARITIME PLAZA, SUITE 1325</rptOwnerStreet2>
            <rptOwnerCity>SAN FRANCISCO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94111</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>1</isOther>
            <officerTitle></officerTitle>
            <otherText>Member of Group Owning 10%</otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001245631</rptOwnerCik>
            <rptOwnerName>TINICUM PARTNERS LP FARALLON</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O FARALLON CAPITAL MANAGEMENT, L.L.C.</rptOwnerStreet1>
            <rptOwnerStreet2>ONE MARITIME PLAZA, SUITE 1325</rptOwnerStreet2>
            <rptOwnerCity>SAN FRANCISCO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94111</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>1</isOther>
            <officerTitle></officerTitle>
            <otherText>Member of Group Owning 10%</otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001340990</rptOwnerCik>
            <rptOwnerName>Farallon Capital Offshore Investors II, L.P.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O FARALLON CAPITAL MANAGEMENT, L.L.C.</rptOwnerStreet1>
            <rptOwnerStreet2>ONE MARITIME PLAZA, SUITE 1325</rptOwnerStreet2>
            <rptOwnerCity>SAN FRANCISCO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94111</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>1</isOther>
            <officerTitle></officerTitle>
            <otherText>Member of Group Owning 10%</otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, par value $0.001 per share</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2500</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F5"/>
                    <footnoteId id="F6"/>
                    <footnoteId id="F7"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, par value $0.001 per share</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2500</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F5"/>
                    <footnoteId id="F6"/>
                    <footnoteId id="F7"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, par value $0.001 per share</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>90500</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F4"/>
                    <footnoteId id="F5"/>
                    <footnoteId id="F6"/>
                    <footnoteId id="F7"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, par value $0.001 per share</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>322000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnotes</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F8"/>
                    <footnoteId id="F9"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">The footnotes of this Form 3 explain the relationships between the reporting persons and the other entities and individuals that may be deemed to beneficially own the securities owned directly by the reporting persons. The entities and individuals identified in  footnotes (2) through (6) of this Form 3 may be deemed members of a group holding equity securities of the Issuer. The filing of this Form 3 and any statements included herein shall not be deemed to be an admission that such entities and individuals are members of such group. The reporting persons are not members of a group with CS Equity II LLC or CapitalSource Inc. with respect to the Issuer's securities.</footnote>
        <footnote id="F2">The amount of securities shown in column 2 is owned directly by Farallon Capital Institutional Partners III, L.P. (&quot;FCIP III &quot;).</footnote>
        <footnote id="F3">The amount of securities shown in column 2 is owned directly by Tinicum Partners, L.P. (&quot;Tinicum&quot;).</footnote>
        <footnote id="F4">The amount of securities shown in column 2 is owned directly by Farallon Capital Offshore Investors II, L.P. (&quot;FCOI II&quot;, and together with FCIP III and Tinicum, the &quot;Form 3 Funds&quot;).</footnote>
        <footnote id="F5">Farallon Partners, L.L.C. (&quot;FPLLC&quot;), as the general partner to each of the Form 3 Funds, may be deemed to be the beneficial owner of the Issuer's securities held by each of the Form 3 Funds.  FPLLC's potential deemed beneficial ownership of such securities is reported on a Form 4 filed jointly by FPLLC and certain affiliated entities and persons on the same date as the filing of this Form 3 (the &quot;Farallon Form 4&quot;). FPLLC disclaims any beneficial ownership of any of the Issuer's securities reported or noted herein for purposes of Rule 16a-1(a) under the Securities Exchange Act of 1934, as amended (the &quot;Act&quot;), or otherwise, except as to securities representing its pro rata interest in, and interest in the profits of, the Form 3 Funds.</footnote>
        <footnote id="F6">As set forth on the Farallon Form 4, the managing members and the Senior Managing Member of FPLLC (the &quot;Individuals&quot;) may also be deemed to beneficially own the securities owned directly by the Form 3 Funds. Each of the Individuals disclaims any beneficial ownership of any of the Issuer's securities reported or noted herein for purposes of Rule 16a-1(a) under the Act or otherwise.</footnote>
        <footnote id="F7">For information regarding the total number of securities of the Issuer either acquired on June 7, 2006 or beneficially owned by FPLLC, the Individuals or certain other affiliated entities, see the Farallon Form 4.</footnote>
        <footnote id="F8">The amount of securities shown in this row is owned directly by CS Equity II LLC, which is indirectly 100% owned by CapitalSource Inc. (&quot;CSE&quot;). The reporting persons, together with the individuals and entities set forth in the Farallon Form 4 and certain affiliated entities, are significant shareholders of CSE. In addition, two persons affiliated with FPLLC are members of the board of directors of CSE. As such, the reporting persons may be deemed to have beneficial ownership of the 322,000 shares of the Issuer's securities held by CS Equity II LLC. Each of the reporting persons disclaims any beneficial ownership of any such securities for purposes of Rule 16a-1(a) under the Act or otherwise.</footnote>
        <footnote id="F9">For more information regarding the reporting persons' investment in and relationship with CSE, see the Schedule 13D amendment filed by the reporting persons and certain affiliated entities on March 17, 2006.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Monica R. Landry as attorney-in-fact and/or authorized signer for each of the reporting persons listed in footnotes (2) through (4).</signatureName>
        <signatureDate>2006-06-08</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>.</signatureName>
        <signatureDate>2006-06-08</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>.</signatureName>
        <signatureDate>2006-06-08</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----