Private members’ clubs have emerged as one of the fastest-growing segments in the hospitality and real estate industries. According to the 2024 Knight Frank report, the past four years have seen more clubs opening than in the three decades following the iconic 1985 launch of London’s Groucho Club. These spaces, once the domain of the elite and eccentric, are now dynamic ecosystems fostering community, exclusivity, and influence.
The industry with Private Members’ Clubs is booming. By 2027 the market is expected to reach $25.8bn, with an annual growth rate of 11.2%, according to the MBS Group.
From Gentlemen’s Clubs to Modern Hubs
Historically, private members’ clubs were exclusive enclaves for the wealthy and powerful. The Groucho Club revolutionized this in the mid-1980s by opening its doors to creative professionals, signaling the start of a cultural shift.
This inclusivity broadened the appeal of such establishments, setting the stage for the rise of globally influential brands like Soho House, which today operates nearly 50 locations worldwide.
The evolution of these clubs underscores a shift from inherited memberships to merit- or interest-based inclusivity. Modern clubs are increasingly targeted at specific demographics, from local communities to niche interest groups, including wellness, sustainability, and technology.
Real Estate’s New Catalyst
Knight Frank’s findings highlight the transformative impact of private members’ clubs on local real estate markets. For example, properties within a 15-minute drive of Soho Farmhouse in the UK command significantly higher demand and faster sales. This “halo effect” extends beyond residential property, elevating the value of nearby hotels, restaurants, and retail spaces.
Additionally, club owners are leveraging their influence during property negotiations, often embedding themselves into developments to enhance the appeal of the surrounding area. The result is a symbiotic relationship between clubs and real estate, with clubs providing cultural cachet and developers offering prime locations.
The Business Models Behind the Clubs
Private members’ clubs today operate on diverse business models. Soho House exemplifies the brand-driven approach, using partnerships to expand without direct ownership of buildings. Other models, such as The Conduit, focus on purpose-driven membership, addressing global challenges like sustainability and social impact through curated events and networking opportunities.
Emerging trends include hybrid spaces combining coworking, dining, and wellness facilities. This versatility attracts a broader audience while addressing the modern consumer’s multifaceted lifestyle needs.
The Challenges of Staying Relevant
Despite their growth, private members’ clubs face significant challenges. Financial strain has led to closures, such as London’s House of St Barnabas, while others struggle to differentiate themselves in an increasingly saturated market. To succeed, clubs must balance exclusivity with accessibility and ensure their offerings remain aligned with members’ evolving expectations.
Innovative programming is a critical driver of success. Clubs like The Century in Soho have found niche appeal through unique events, blending traditional club values with modern-day trends.
Future Directions: The Third Wave
The Knight Frank report suggests we are witnessing the “third wave” of private members’ clubs. This phase is defined by hyper-localization, diversity in offerings, and a focus on community over commerce. Clubs are becoming less about wealth and more about shared values and experiences.
Emerging concepts include family-oriented clubs and wellness-focused spaces, appealing to younger and more conscious demographics. Additionally, developers are exploring club-like experiences without formal memberships, blending exclusivity with broader accessibility.
Conclusion: A Cultural and Economic Force
Private members’ clubs are no longer just havens of exclusivity; they are vibrant hubs shaping culture, real estate, and community dynamics. Their evolution reflects broader societal shifts, emphasizing connection, purpose, and innovation.
As these clubs continue to adapt and expand, their influence on modern lifestyles and markets will undoubtedly grow, making them a cornerstone of contemporary urban life.
