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ILLUSTRATION BY PING ZHUCLUBS Bloomberg Pursuits January 29, 2018MembersOnly
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ByTomMetcalfTo the uninitiated, the block of 18th century town houses
in London’s Shepherd Market doesn’t look like much.
But behind the maroon doors and Georgian façade lies
5 Hertford Street, one of London’s most fabled—and
secretive—members clubs.
Inside are private dining rooms with roaring fires, a bar
encrusted with seashells, and a cigar shop featuring a cus-
tom walk-in humidor where Davidoff Dom Perignon and
other rare stogies are available.
The club was opened in 2012 by Robin Birley, son
of Mark Birley, founder of five-decade-old Annabel’s
nightclub. Today, the waiting list includes more than
3,000 applicants eager to pay the roughly $2,700 annual
fee, not that the club would ever boast about such things.
Birley’s 21st century take on the British institution is dis-
tinct from traditional outlets such as White’s, which
doesn’t admit women as members.
Its modern spin on the members-club concept includes
Loulou’s, a Rifat Ozbek-designed nightclub in the base-
ment, which has a dance floor with psychedelic patternsbeneath a starlit ceiling and a stuffed giraffe’s head that
marks the entrance to your own private Oz. And the club’s
commitment to privacy and exclusivity makes the dance
floor even more freewheeling—a who’s who of the well-
connected. Says Charles McDowell, a luxury real estate
broker who’s joined: “5 Hertford Street is the best place
to network in London.”
Birley is now expanding to New York and is in talks to
take over a space near Union Square in Manhattan. The
London club is popular with Americans—several hundred
of its members hail from the U.S. and use the location
as a place to set up homes-away-from-home in the quiet
alcoves that dot the property. Charlie Methven, a spokes-
man for Birley, says Americans have urged him to cross
the Atlantic: “Many have been suggesting to him that New
York would welcome a Birley club.”
Groucho Club, a London venue established in 1985
that’s favored by art and media insiders, is also in dis-
cussions with a landlord for a New York location, accord-
ing to managing director Matthew Hobbs. Soho House, a
competitor that already runs two popular outposts in New
York, has additional locations planned for Brooklyn and
Hong Kong.
The flurry of developments reflects the continued
demand for a members club that combines the age-old
desire for exclusivity with a more relaxed atmosphere tai-
lored to contemporary lifestyles—a club very different from
the stodgy spots lining London’s Pall Mall or clustered near
New York’s Central Park South. “A new generation is con-
verting to the idea of clubs,” says Methven, whose PR firm
Dragon Advisory has consulted on six openings in the past
five years, including clubs in Dallas and Shanghai.
The Battery, which occupies a former warehouse in San
Francisco, has grown to more than 4,600 members since
it opened in 2013. They roam Ken Fulk-designed interiors
and attend free events featuring performers such as Snoop
Dogg and the Chainsmokers.
Birley toldVanity Fairin 2012 that 5 Hertford Street cost
$50 million to open. His backing in part comes from the
billionaire Reuben brothers, who own the property. Soho
House’s expansion has been fueled by Yucaipa Cos., a pri-
vate equity firm owned by Ron Burkle, another billion-
aire, who bought a 60 percent stake in the group for about
$375 million in 2012. For investors, members clubs pro-
vide immediate cash flow—day-to-day operations tend to
quickly become profitable—while the properties offer a real
estate bet in the world’s most desirable markets.
The clubs are seeing some competition from high-end,
hybrid co-working spaces. Mortimer House, from hote-
lier Guy Ivesha, opened in December in a six-story art
deco building in central London. It features four floors of
workspaces and a living room, den, loft, and gallery for
members. A gym and pilates studio occupy the basement.
Although his outlay on the property alone was $39 million,
Ivesha had little difficulty attracting interest from financier
Cain International.