Private members’ clubs are enjoying a renaissance, with more opening in the past four years than in the three decades that followed the opening of London’s Groucho Club in 1985.
According to Knight Frank’s Guide to Private Members’ Clubs 2024, authored by Liam Bailey and Patrick Gower, this surge signals a transformation in both hospitality and real estate, fuelled by a growing desire for connection, exclusivity, and community.
The report highlights that the private members’ club sector has evolved far beyond the elite gentlemen’s clubs of the past, which served only the wealthiest members of society. Instead, today’s clubs attract a diverse range of professionals, including creative talents, tech entrepreneurs, and those in search of unique social spaces. The booming sector shows no signs of slowing down, with prospective club openings at an all-time high
Impact on real estate markets
One of the most significant findings in the report is how private members’ clubs are reshaping the real estate market. For example, properties within 15 minutes of prestigious clubs like Soho Farmhouse in the Cotswolds saw buyer interest more than double in August 2024, with 2.3 buyers registering for every one buyer in adjacent areas. The report, supported by research from Knight Frank’s Private Office partners Alasdair Pritchard and Hugh Dixon, highlights how proximity to luxury clubs can add glamour and value to surrounding properties, influencing everything from local retail to property prices.
In urban areas, the rise of hyper-local clubs like The Dally in London’s Islington and Inness in upstate New York shows that these establishments are increasingly becoming integral to community development, attracting international buyers and increasing the allure of certain neighbourhoods.
Clubs as drivers of new business models
As the sector grows, private members’ clubs are adapting and introducing innovative business models. Clubs such as Aman in New York City target ultra-luxurious clientele, while others, like The Conduit in London, focus on social impact and community programming. The report details how successful clubs are now essential anchors for real estate developments, offering curated experiences that extend beyond hospitality.
Programming plays a pivotal role in a club’s success. According to Nick Hamilton, co-founder of The Conduit, engaging events are the biggest source of member conversion, and offering something unique is key. Whether it’s challenging discussions with global thought leaders or fun, niche events like those hosted at The Century Club in Soho, modern clubs are diversifying their offerings to stay relevant.
The third wave of private clubs
Knight Frank’s report positions the industry as entering its “third wave”, where clubs have evolved from eccentric projects to serious moneymakers. In an increasingly competitive market, particularly in global cities like New York, the exclusivity of clubs remains a primary draw. Richie Notar, hospitality consultant and co-founder of Nobu, notes that real exclusivity is what “drives people nuts” in cities like New York.
Clubs now cater to specific interests, such as tech, wine, or wellness, and memberships are no longer confined to traditional networking opportunities. Many clubs also now operate as coworking spaces or family clubs, offering services for all aspects of life, including fitness, wellness, and even childcare.
Challenges ahead
While the industry is booming, the report warns of potential pitfalls. High membership fees can alienate younger, more dynamic individuals who contribute to the vibrant culture clubs aim to foster. Martin Raymond, co-founder of The Future Laboratory, argues that focusing solely on wealth can lead to soulless “boltholes for the elite”. Instead, the report suggests clubs should focus on building diverse communities to sustain long-term success.
In addition, some clubs are showing signs of financial strain. For example, the House of St Barnabas in Soho and the women’s-only club Chief both recently closed due to financial difficulties. The sector must find ways to maintain its allure while remaining financially viable.
Private members clubs a dynamic corner
As A Guide to Private Members’ Clubs 2024 makes clear, private clubs are not only reshaping social and professional networks but also transforming real estate markets around the globe. With the right mix of exclusivity, community, and innovative business models, the private members’ club sector is set to continue its rise as one of the most dynamic corners of hospitality and real estate.
For property developers and real estate investors, partnering with private clubs can enhance the appeal of luxury developments and bring additional value to surrounding areas. The report suggests that, whether in commercial real estate or private homeownership, aligning with the club model could be a key to future success
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