• Date of publication: 26 August 2022
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  • wsj.com
  • Member-only clubs are popping up all over Manhattan, providing an alternative social center and workspace as New Yorkers spend less time in the office.

    Synopsis

    Amenities range from bars and workspaces to restaurants and spas, and many places have long waiting lists.

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More than a dozen clubs have opened in the area since 2003, including at least nine in the past three years, according to Zach Bates, chief executive of private club marketing. Most charge $5,000 or less in annual fees, plus a lower registration fee, although those at the top may charge significantly more. Aman New York, a private club associated with a luxury hotel on Fifth Avenue that opens in August, requires an entry fee of $100,000 and an annual fee of $15,000.

According to a person familiar with the matter, this six-figure entry fee gives members access not only to a luxury club and spa, but also tickets to major sporting and fashion events around the world and private visits to artists' studios.

Most of Manhattan's new clubs are focused on dinner, drinks, and socializing, as more than half of New York City's white-collar workers continue to avoid the office. 

"We've lost a lot of that during the pandemic, the ability to connect and communicate in person," said Mike Eng, a 46-year-old entrepreneur and a member of The Ned NoMad's founding committee, which opened June 30.

Italian hotel company Cipriani SA opened a luxury hotel and private club Casa Cipriani on the waterfront in the city center in September, and more Manhattan clubs are under development. That includes another Ned location planned for 2024 in the former American Stock Exchange building, the company said last week. The 190,000-square-foot club will include a rooftop pool, gym and several restaurants and bars. ZZs Club, the second private club from the hotel company Major Food Group, will open this fall at Hudson Yards.

Members of the Ned NoMad Club get a view of the Empire State Building from the rooftop terrace.

These new establishments are a far cry from the old guard of alumni and gentlemen's clubs, which were known for their dining rooms requiring jackets and ties, and older male memberships. Today, operators say they value youth and diversity, serving wealthy professionals.

The bulk of these clubs' revenue comes from spending on hotel rooms, food and beverages, said Mr Bates of Private Club Marketing. Membership fees strengthen the core hotel business.

From desired residences to major commercial transactions.

Soho House & Co., which opened in New York's Meatpacking borough in 2003, pioneered this business model and now has 36 locations worldwide, with less than a third of its total revenue coming from membership fees, according to public filings.

Ned NoMad, a subsidiary of Soho House, also relies on public guests. Non-members can stay at the 167-room Neds Hotel, or dine and drink at its Cecconis Italian restaurant and 1920s-style bar. Gareth Banner, managing director of the ned group, said he expects about half of the revenue to come from non-members.

Members of the Ned Club enter through a private door that opens into an atrium with a mosaic floor, illuminated by a skylight and furnished with plush chairs and custom tables. In a private library, participants take calls during business hours and sip cocktails in the evening.

Yolanda Shoshana, an entrepreneur, said that belonging to the House of Ned and Soho means that you should never plan a night. She uses her membership to socialize and socialize and loves how the clubs always play live music and other activities.

"You don't have to do anything but show up," she said.

Zero Bond is among the new clubs that are still members only. It relies heavily on the advice of members when adding members to its list.

Some new clubs are still members only, including Zero Bond. The place where New York City Mayor Eric Adams is regularly spotted opened two years ago in lower Manhattan. Founder Scott Sartiano said he strives for a relaxed atmosphere and applies the no-laptop rule starting at 6 p.m.

Would you join a membership-only club? Why or why not? Join the discussion below.

It may take some time to become a member of these clubs. Zero Bond relies heavily on the advice of current members when adding members to its list. Mr Sartiano declined to say how many members he has but said Zero Bond has about 8,000 people on its waiting list. Other operators of the clubs said they have about 1,000 active members and take into account factors ranging from the age and occupations of applicants to how and when they plan to use their membership.

Even with the growing popularity of these establishments, running a club in a major market like New York City has its risks, including higher rents and labor costs, said Deborah Smith, chief executive of investment bank CenterCap Group LLC. Enterprises based on exclusivity must maintain a high level of service, and operators cannot expand their membership lists too much.

"The last thing you need is a club you can't get into because there are too many people there," Ms Smith said.

NeueHouse bills itself as an all-in-one package, offering more expensive memberships for startups and small businesses, as well as standard individual rates. Participants can enlarge the soundproof capsules during the day and attend networking and cultural events in the evenings.

On Wednesday afternoon at NeueHouse Madison Square, members filled long wooden tables on the ground floor. On average, for the three existing locations in the U.S., NeueHouse earns about 35% of its revenue from membership fees, with the rest coming from brand partnerships, private events and restaurants and bars, according to chief executive Josh Wyatt.