(Bloomberg Businessweek) -- To 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 custom 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 distinct 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 basement, which has a dance floor with psychedelic patterns beneath 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 spokesman 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 discussions with a landlord for a New York location, according 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 tailored 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 converting 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 told Vanity Fair in 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 private equity firm owned by Ron Burkle, another billionaire, who bought a 60 percent stake in the group for about $375 million in 2012. For investors, members clubs provide 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 hotelier 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.
To contact the author of this story: Tom Metcalf in New York at tmetcalf7@bloomberg.net.
To contact the editor responsible for this story: James Gaddy at jgaddy@bloomberg.net, Justin Ocean
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