Members-Only Mania: Why Are More Private Clubs Popping Up in New York?

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Members-Only Mania: Why Are More Private Clubs Popping Up in New York?

The historical function of membership clubs – dividing the city according to gender, race or class – still exists today.

Aman New York, which opened in 2022, offers membership with an initiation fee of $200,000 plus annual dues. Exclusive access to Casa Cruz, which opened the same year, cost $250,000 to $500,000. Major Food Group's ZZ's Club charges relatively low fees of $20,000 to open and $10,000 a year – the cost of access to the “world's first and only private Carbone location,” a celebrity favorite Company restaurant.

On the other end of the spectrum, Verci membership — which has more of a do-it-yourself college campus feel — ranges from $200 to $300 per month, with no joining fee. “We use this as our third space, our shared living room, a place for about 120 people who are all young, creative and artistic,” said Anant Vasudevan, co-founder of Verci, which opened its first location in a former office space in last year Lower Manhattan.

The rapid growth comes with some delays. Soho House, one of the most well-known clubs, announced late last year that it would no longer accept new members at its premises in Los Angeles, New York and London after complaints of overcrowding. The company, with over 180,000 members and more than 40 locations worldwide, was founded in 1995 and paved the way for today's clubs. In 2021, Soho House made an initial public offering as part of an aggressive expansion effort, but has recently been considering privatization again.

Will the current flood of hip, trendy clubs stand the test of time?

According to Mr. Vasudevan, the affordability of commercial real estate played a role in Verci being able to secure a physical space in downtown Manhattan. “Being able to have a little bit of influence on that side was really helpful for us, especially in the beginning,” he said, adding that his company “retooled” the space to make it “feel more like a cozy environment than ….” like a corporate environment.”