Private members club are booming for a range of different reasons. Some have strict rules, own property and require a selection process to join. Others are more informal and open to all.

From celebrity stomping ground 1Oak to hospitality magnate Scott Sartiano's new Manhattan club Zero Bond, these clubs offer a curated third space where work seamlessly transforms into play and community is prioritised.

Socializing

As socializing has become more fraught - gaining access involves more than just getting past the doorman – new and evolving members-only hot spots are emerging to fill a growing need. As the lines between work and play blur and community, cohesion, and a sense of belonging are prioritized, these spaces offer a curated 'third space' where culture flourishes and curious minds meet.

While some of these clubs such as Jonathan Club are still rooted in traditional elitist gentlemen's club tradition, many have shifted to more modern commercial establishments that don’t discriminate on the basis of class or gender. They typically offer food, drink, and venue hire in exchange for membership fees.

In addition to a comfortable environment, members' clubs often provide services that restaurants and bars do not, like staff that knows your name, the ability to leave belongings with confidence, and guaranteed seats versus first-come, first-served. They also have the flexibility to host a wide range of activities, such as expert talks and art-based workshops.

With more than a dozen new clubs slated to open in Manhattan since 2020, it’s clear that this craze is here to stay. Some are offshoots of hotel brands (like the Andre Balazs-owned Zero Bond), others leverage a cult-like following (like Casa Cipriani in New York City) and some, like Silencio in Paris, have been dubbed Europe’s most elusive private club by Town and Country magazine because of its strict rules (no photos allowed). In addition to catering to high net worth individuals, they have also garnered attention from celebrities and influencers.

Networking

Private Members Clubs are a perfect place to meet new people and expand your network. Many clubs host multiple events throughout the year that allow you to interact with different people from a variety of industries and backgrounds. These interactions can lead to valuable business connections and personal friendships. In addition, some clubs offer specialized services for networking purposes, such as career coaching and mentoring programs.

In addition to networking, private member’s clubs provide a variety of other benefits for their members. For example, they may offer discounts on products and services, such as travel and lodging. They may also host exclusive events for their members, such as educational seminars and social gatherings. Additionally, they can offer a range of luxury amenities, such as fitness centers and spas.

There are a number of factors that can affect the profitability of a Private Members Club, including competition, high operating costs, and economic instability. However, by implementing effective marketing strategies, private member’s clubs can increase their profitability. These strategies include establishing meaningful connections with customers, maintaining a diverse range of services and products, and incentivizing customers to refer friends. In addition, a private members club can benefit from collaborating with local influencers to promote its offerings. These strategies can help a private members club attract new customers and retain existing ones.

Sense of Community

For many clubs, it's all about the sense of community. They want to give their members a club they can call their own where they feel comfortable and where they can meet people who have similar interests. It's not uncommon for clubs to offer a variety of different activities, sports, business and leisure facilities in return for a membership fee.

While the concept of private members club is quite old, it's booming like never before. Whether due to the pandemic or simply because social life has become fraught, people are seeing the value in creating a club that's specifically designed for their own needs and wants.

A good example is the hush-hush 5 Hertford Street in Mayfair, London. The swanky club has a reputation for discretion and boasts a roster of celebs, including Colin Firth, Princesses Eugenie and Beatrice, actor Neymar and footballer Cara Delevingne.

It's also worth remembering that a club is a form of membership association and can be structured in a number of ways, from an unincorporated society to an unincorporated association or trust to a limited company. Regardless of the legal structure, the club should have a constitution which sets out the rules governing the conduct of its members. This should include the criteria for membership and ensure that no one is excluded on unlawful grounds such as race or gender.

Relaxation

Private clubs offer a retreat from the hectic world outside. They are intimate, well-considered spaces that offer work, rest, and play, where members can find a sense of calm. With the relaxation of COVID-19 restrictions, some clubs have seen an influx of members seeking to escape their hectic lives, looking to reconnect in a safe and relaxing environment.

Many clubs routinely charge depreciation 'below the line' to avoid skewing operating results. This approach has two key benefits for club financial managers.