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
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?
