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A luxury hotel group just paid McKinsey $200K for a members club strategy. | Paul Stanton

  • Paul Stanton
  • 3 July 2025
  • 2 minute read
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This article was written by a Hotel Marketing Flipboard. Click here to read the original article

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A luxury hotel group just paid McKinsey $200K for a members club strategy. Their recommendation? Dead wrong. Here’s the framework they should have used:

1/ Hotels with Full-Service Clubs (e.g., Aman NYC)

• Layering exclusivity onto existing five-star operations
• Members get priority reservations, private dining, hotel amenities (fitness/wellness access, etc)
• Revenue model: Ancillary membership fees + F&B premiums + room upgrades

Works when your hotel already commands premium rates w/ full-scale amenities.

2/ Hotels with Private Dining Clubs (e.g., Doubles Club / Sherry Netherland)

• Invite-only dining rooms tucked inside luxury hotels
• Separate staff, membership rosters, and often their own entrances
• Revenue model: Annual dues + minimum spend + F&B margin

Best when your hotel lacks the scale for a full-service club but has heritage, mystique, or social cachet.

3/ Clubs with Hotels (e.g., Soho House playbook)

• Lifestyle-first, hospitality comes second
• Requires critical mass across multiple locations
• Revenue model: Global membership fees + travel reciprocity + F&B

The magic?

When members see the hotel rooms as a membership perk, not a profit center.

4/ Clubs without Hotels (e.g., Chez Margaux)

• Lower infrastructure costs, higher intimacy; F&B heavy
• Easier to scale in expensive urban markets
• Revenue model: Membership + F&B + private events

Two Reside properties win Wyndham Hotels’ “Best of” 2024 award for third year in a row
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Two Reside properties win Wyndham Hotels’ “Best of” 2024 award for third year in a row

Less capital intensive. More focused community building.

5/ The OGs NYAC, University Club, Knickerbocker, etc.

• Still thriving in major markets
• Non-profit structures, generational memberships
• Revenue model: Initiation fees + monthly dues + legacy endowments

These survived because they solved for longevity, not quarterly returns.

The pattern?

Most hotel groups bolt on clubs to existing operations.

Same management. Same systems.

Result:

Confused identity and mediocre economics.

The smart play?

Pick your lane first:

• Hotel-first = Premium amenity for guests + locals
• Club-first = Lifestyle platform with hospitality perks
• Standalone = Pure community with F&B focus
• Legacy = Generational wealth preservation

Structure follows strategy.

Most $15M mistakes happen because operators never answered the identity question.

Which model are you building?

Please click here to access the full original article.

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