Private Clubs Are The Latest Trend In Luxury Hotels
After meeting with more than 60 hoteliers over a three-day period at an invite-only event, the next big trend for luxury hotels doesn’t involve guests at all.
Private members’ clubs have long been the domain of the elite, offering exclusive spaces for networking, relaxation, and indulgence. In recent years, these establishments have experienced a renaissance, with Soho House leading the charge. Now, luxury hoteliers are entering the fray, blending the allure of private clubs with high-end hospitality.
Soho House: Pioneering Modern Exclusivity
Founded in 1995 in London, Soho House redefined the private club concept by targeting creatives and entrepreneurs rather than traditional elites. This approach resonated globally, leading to rapid expansion. As of 2024, Soho House operates 42 club locations worldwide, with plans for further growth. The Wall Street Journal reported in February that despite so many clubs in operation, members still complained about waiting too long for drinks among other challenges with Soho’s rise in popularity.
Financially, the brand has shown impressive metrics. In 2024, Soho House reported a 7% increase in total revenues and a 14% rise in adjusted EBITDA . Membership numbers have also surged, with over 193,900 members reported in 2023.
However, rapid growth hasn’t come without challenges. The company reported a £92 million loss in 2023, raising concerns about sustainability but that’s not stopping hoteliers from throwing their hats in the ring. Despite this, the brand’s influence is undeniable, inspiring a new generation of private clubs.
Luxury Hoteliers Embrace the Private Club Model
Recognizing the appeal of exclusivity, several luxury hoteliers are launching their own private clubs:
Sterling’s Club, Naples: Set to debut in late 2026 within The Carnelian Hotel, Sterling’s promises a blend of fine dining, wellness, and entertainment across 70,000 square feet. The sixth floor will house a members-only area featuring gourmet restaurants, a speakeasy, and a wine cellar boasting a $1 million-plus collection .
The Bazaar by José Andrés, Washington D.C.: Slated to open in 2027, this venture will feature 67 luxury rooms and a private membership club in Georgetown. The club aims to connect thought leaders and foster community, complemented by multiple dining venues and a wellness center .
The Hedges Inn, East Hampton: Acquired by the founders of The Colony Hotel, this historic inn has been transformed into a luxurious retreat. While not exclusively a private club, the revamped Hedges Inn offers curated guest experiences reminiscent of exclusive clubs, including collaborations with brands like Naturopathica and Volvo.
But there are many, many more. While not all have publicly announced their programs, many are coming soon. In fact, 15% of ultra luxury hotels I met with indicated they had something coming soon in this space.
The Allure of Exclusivity in Hospitality
The resurgence of private clubs and their integration into luxury hospitality reflect a broader trend: the desire for curated, exclusive experiences. In an era where personalization is paramount, these establishments offer members a sense of belonging and tailored services.
Moreover, the blending of private clubs with hotels allows for diversified revenue streams and enhanced brand loyalty. Guests not only seek luxury accommodations but also value the community and networking opportunities that private clubs provide. The amenities are important, but not nearly as much as being in the right place at the right time.
The Opportunity For Major Chains
Imagine for a moment that you’re an ultra-elite with Marriott, you’re blowing way past the $20,000 annual requirement for Ambassador and have done since before the requirement was even a consideration. You live in New York but you’re in downtown Houston for meetings, flying back later that night. Your meeting finished early, wouldn’t it be nice to stop off at the Marriott Marquis, get in a quick workout and a shower before heading home?
Your flight has been cancelled at Dallas/Fort Worth and you’re rebooked on the next direct flight a few hours later. You could stand in line for the AMEX Centurion Lounge or you could pop into the Grand Hyatt, use the business center, or an empty meeting room to host a conference call. Or maybe you’ve just wrapped a major meeting in Manhattan and want to pop into the Park Hyatt next door for a celebratory drink with your colleagues before heading home.
Perhaps it’s just the serious five stars chains within major brands that participate like St. Regis, and Ritz-Carlton. The concept of having an embassy with impressive access anywhere you go is an attractive proposition.
Conclusion
The success of Soho House has paved the way for a new paradigm in luxury hospitality, where exclusivity and community converge. As hoteliers adopt the private club model, guests can anticipate more personalized and immersive experiences. While challenges remain, particularly in balancing growth with exclusivity, the fusion of private clubs and luxury hotels appears to be a promising frontier in the hospitality industry. Major chains may or may not follow the trend like the luxury hotels with which some of their brands compete, but it could be an option and incremental ancillary revenue.
What do you think?