The McMahon Report January 2026

3Winter Park Racquet Club Marches Forward 6Capital Planning - Lump Sum or Monthly Payments? 14 12 Avoiding Shortcuts in Long-Range Planning 8Beyond the Data: Why Expertise Makes all the Difference State of the Club Industry: City Club Trends 10State of the Club Industry: City Club Trends Maximizing Clubs’ Outdoor Dining Advantage CALL NOW TO SCHEDULE YOUR F I RST IMPRESS I ONS V I S I T FOR 2026 ! T H E S O U R C E F O R P R I V A T E C L U B E X C E L L E N C E™ JANUARY 2026 McMahon Report® THE

ABOUT MCMAHON GROUP Our Mission: “To be the premier club consulting firm dedicated to private club excellence by providing clubs and their management with the best possible strategic and facility planning expertise. We are committed to identifying the key trends impacting the club industry, enhancing the profession of club management and to assisting presidents and Boards with adopting the best practices to foster effective governance to create successful clubs.” Family- and managementowned since 1983 with an outstanding professional staff. We have served clubs and communities throughout the world in all aspects. OVER 2000 CLUBS SERVED OVER 150 HOA’S SERVED McMahon Group, Inc. 670 Mason Ridge Center Drive, Suite 220 St. Louis, Missouri 63141 • 314.744.5040 info@mcmahongroup.com www.mcmahongroup.com www.clubmanageraward.com www.mcmahoncommunity.com WHATWE OFFER • Strategic Planning and Implementation • Facility Planning and Funding Programs • Membership Surveys and Research • Existing Facilities Condition Analysis • HOA Community Consulting • McMahon Quality Index™ Rating Program $3.5 BILLION RAI SED CONNECT WITH US ONLINE FOR VIDEOS, BROCHURES AND EVEN MORE UP TO DATE CLUB INFORMATION! FROM THE PRESIDENT 40+ I N BUSI NESS YEARS Dear Club Leaders, The private club industry stands at an exciting crossroads where tradition meets transformation. As we move into 2026, clubs across the country are experiencing remarkable momentum—from record membership levels and waiting lists to ambitious capital projects that are reimagining what it means to be a member-owned institution. Yet this success brings its own set of challenges: • How do clubs balance heritage with innovation? • How do they fund necessary improvements while maintaining accessibility for members at all life stages? • And how do they ensure that every decision truly reflects what their members want and need? This edition of The McMahon Report explores these critical questions through real-world examples and expert insights gained from over four decades of serving more than 2,000 clubs worldwide. We begin with Winter Park Racquet Club's inspiring journey—a masterclass in member-driven planning that transformed a struggling club into a thriving community with capacity membership and a waitlist. Their story demonstrates how transparent communication, genuine member input, and flexible payment options can turn ambitious facility plans into overwhelming member support. We also tackle one of the most debated topics in club governance: capital funding strategies. Our consultants present compelling cases for both lump-sum assessments and monthly payment plans, ultimately revealing why the most successful clubs are adopting hybrid approaches tailored to their unique membership demographics and financial circumstances. From city clubs staging an impressive comeback in major metropolitan markets to the growing importance of outdoor dining as a competitive advantage, this issue examines the trends reshaping our industry. We explore why expert interpretation of survey data matters more than the raw numbers themselves, and why shortcuts in long-range planning inevitably create more expensive problems down the road. Whether you're a club President, Board member, General Manager, or committee volunteer, the insights shared here are designed to help your club navigate today's challenges while building for tomorrow's opportunities. Because ultimately, successful clubs don't just react to change—they plan for it thoughtfully, with their members' voices guiding every decision. My best, Martha McMahon Acker, McMahon Group President 2 The McMahon Report® Florida | Illinois | Missouri | NewHampshire | North Carolina | South Carolina For more information or to schedule a First Impressions Visit, please contact Alison McMahon at amcmahon@mcmahongroup.com.

By Chris Coulter, CCM, ECM Vice President of Club Consulting Winter Park Racquet Club Marches FORWARD The McMahon Report® 3 Starting the Process Rewind to 2022, however, and it was a much different picture at WPRC. The Club’s Board had hired a new General Manager/COO, Ian Munroe, CCM, to help address immediate issues of concern while also undertaking a more structured approach to long-range planning. Success in both areas would hinge on two critical factors: • Members’ input on their current satisfaction with the club and their desires for its future direction would always need to be the guiding force. • Gaining members’ confidence and trust, and securing their acceptance and financial participation for future capital projects, would first have to be earned by elevating the existing member experience. To pursue both objectives simultaneously, WPRC engaged McMahon Group to conduct a comprehensive membership survey while Munroe and his management team began to make significant changes both in how the club looked (through physical enhancements in areas including the pool, playground, pickleball courts, boat docks and lakeside area) and how it operated (through improved service levels, greater member engagement, transparent communication and other initiatives). I n early November of 2025, construction equipment began to tear into the Tuscany House at the Winter Park (Fla.) Racquet Club (WPRC), to dismantle an existing building inside the club’s entrance that was acquired in 2015 to expand on WPRC's 72-year-old property. As the old building was originally a family home that was not functional for members of the club, no one within the WPRC community was surprised to see the aging Tuscany structure start to come down. The demolition began the first physical phase of a sweeping transformation of the club that had been meticulously planned through a three-year process to develop a Master Facilities Plan, “WPRC Forward,” that focused from day one on ensuring that all members would not only have full awareness of all that the plan involved, but also ample input and influence to shape it as their own. When construction for the initial phases of WPRC Forward is completed in the late fall of 2026, members will be able to enjoy not only an impressive new (and properly renamed) Tuscany Center, but many other exciting new facilities and features (see “WPRC’s Forward Steps,” pg. 5). Even better, all of the construction will be completed with minimal disruption of club activity, continuing to advance momentum gained over the same period that WPRC Forward was planned and implemented to repair the club's financial standing, grow its membership to capacity (500, with a total headcount of over 1,600) and a first-ever waitlist, and earn honors as a Platinum Club and Top Workplace in the Greater Orlando area. At the end of 2025, WPRC was also awarded Distinguished Clubs status. By the time the responses to the member survey, representing 67% of member households, were in hand a year later, WPRC had already taken great strides towards membership growth and the achievement of management and financial stability. While the survey showed, however, that overall member satisfaction was now on par with comparable clubs, as benchmarked against the McMahon Group survey database, the percentage of very satisfied members still lagged other clubs. Other survey results pointed specifically to facility-related issues that clearly held the keys to moving more members into the “very satisfied” realm. A striking 85% of survey respondents expressed support for the club to develop a Master Facilities Plan. And when members’ responses to questions about the importance of specific club activities and facilities, and their satisfaction with each of them, were plotted by McMahon on an Importance/Satisfaction matrix, only the club’s core offering, tennis, landed above McMahon’s Value Boundary™ Curve, reflecting high importance and high satisfaction. At the same time, WPRC’s clubhouse facilities and lakefront area landed below the curve and were plotted as Priority Improvements (with high importance but low satisfaction), while several other facilities and activities, including private parties and the pool/ aquatics area, were shown to be Missed Opportunities (of moderate importance and with lower satisfaction). Crafting the Plan The survey results gave WPRC’s leadership clear directives for proceeding with steps to elevate its facilities and follow the progress made in operations and management/governance. To build on initial master-planning and stra- “The family-centric atmosphere that we’ve created is really pulling people in, and what we’ll be adding now [through “WPRC Forward”] is just adding to the buzz.”—Ian Munroe, CCM, General Manager & COO

tegic-planning efforts that had been undertaken, including the completion of Mission and Vision Statements that would guide all decisions, a Facilities Master Planning Committee was established to further analyze the survey data and craft a preliminary plan that would reflect the needs of both current and future members. After the plan was reviewed and endorsed by WPRC’s Board of Governors, Munroe and his management team worked with McMahon to define operational metrics for the improvements specified in the plan, create initial renderings and layouts, and develop cost estimates. The club also secured preliminary commitments from its bank for a portion of needed funding support. The plan and its details were then prepared for presentation to the membership through two in-person informational sessions and other forms of digital and print communication. A digital booklet summarizing the initial plan was then provided to the membership that included a link to a second opinion survey that asked specifically for members to prioritize the various components of the proposed plan and indicate their preference for member-funding options that would augment bank financing and the club’s capital reserves. (In the initial member survey, respondents indicated a willingness to provide support for a plan costing up to $8 million; the first Master Facilities Plan estimated the cost of proposed improvements at $6.75 million.) “We are not taking a vote until all members have had the opportunity to share their feedback on the project,” WPRC President Rob Carter wrote in the booklet’s introduction. “Your opinions, recommendations and feedback are crucial. This plan is, above all, the members’ plan, and it’s important that the vast majority of you feel confident that it represents the best path forward for our club.” Responding to Responses Those words were backed up at the start of 2025 when a revised proposed Master Facilities Plan booklet was sent to members. Changes from the plan, outlined under the heading "Members Spoke, We Listened!" included: • Reducing the overall project scope to postpone plans for constructing a covered dining deck at the pool and renovating the club’s Sugar Shack dining venue, with a pledge to engage a club-hired architect to study future outdoor-dining solutions while also exploring interim, semi-permanent options (high-end tenting, cabanas, new layouts, etc.). • For the three elements that would remain, these modifications were made: • The design of the new Tuscany Center was revised to expand the locker rooms, including more space to support tennis and pickleball. Several modifications were also made because of members’ comments about the Center’s proximity to Via Tuscany, the road outside the club’s entrance, including elimination of parking, seating and socializing areas along the road out of respect for neighbors (who include many WPRC members), enhanced landscaping to further reduce the building’s visibility and add privacy, and reimagining the building’s design and aesthetics to fit better with the neighborhood’s curb appeal. • The outdoor socialization area for the Lakeside Pavilion was modified from all grass to a combination of grass and highgrade turf, to better facilitate member functions, reduce ongoing maintenance costs, and create flexibility to use the turf area for other activities. • The Nate Smith Players’ Lounge was designed to be a multifunctional “flex” space, with the air-conditioned tennis players’ lounge able to be converted for other club and member uses and for services ranging from childcare to league lunches and summer-camp space. The revised plan also presented a new proposed budget and breakdown of funding, including options for the members’ portion. “After reviewing the data from the opinion survey and understanding that the membership would like to see more fiscal responsibility,” it was noted, “the revised project has been reduced to $5 million.” Clear Permission to Proceed The revised plan’s booklet ended with a link for members to cast their ballot to approve or reject the plan. When the votes were tallied, over 70% approval was registered. While the club’s bylaws do not require member approval of capital expenditures—and while over 50% of members had actually said in the first plan’s opinion survey that they would like to see all of the originally proposed improvements done immediately—Munroe says that WPRC would not have proceeded without a strong-enough approval vote. One key to securing the “overwhelming” mandate, he adds, was how it was stressed, while presenting all of the plan’s iterations, that no mandatory upfront assessment would be required of members. “Everyone has the opportunity to choose the monthly option if they wish,” Munroe says. “We felt it was important to make sure there was a choice of payment options that democratically fit all stages of the membership, with special consideration for our senior members.” Munroe reports that “it’s looking like 15 to 20 percent will still choose either the one- or two-year payment options.” He believes, however, that the 70-plus percent approval for the revised Master Facilities Plan would “have definitely been lower” without the assurance that upfront assessments would not be required. 4 The McMahon Report®

Conceptual View of Lakeside Pavilion The McMahon Report® 5 Winter Park Racquet Club’s Forward Steps Lakeside Pavilion The far end of the WPRC property abuts the eastern shore of Lake Maitland and includes a private boat ramp and two docks. While the club’s junior Olympic swimming pool and a popular playground have long been located on this part of the property and members have also enjoyed access to an extensive variety of aquatic activities on the lake, as well as private lakeside dining and sunset views from in-ground firepits, a prime piece of WPRC’s lake- front was occupied by an aging and unattractive facilities maintenance building. Through the Master Facilities Plan, what was termed “the most underutilized lakefront space in Winter Park” has been reimagined to “maximize the property’s most premier view.” The maintenance facility will be relocated to a more suitable, out-ofthe-way area to make room for a new Lakeside Pavilion, with an adjacent event lawn (see rendering above), that will be dedicated space for member functions, as well as club events, tournaments, birthday parties and summer camps. Repurposing the area will also minimize the need to close the club for events, as more parking is created on the campus. Nate Smith Players’ Lounge WPRC has always been known for its best-in-class tennis program, and the club has also earned national recognition for how it has built up its pickleball facilities and program to stay out in front of that sport’s exploding popularity. The Nate Smith Tennis Center, named for the club’s beloved 30-year tennis professional who passed away in 2003, has long served as the hub of WPRC’s racquets operation. Member input gathered as part of the development of the Master Facilities Plan, however, identified new needs for the Center that will now be addressed with these improvements: • A new Players’ Lounge will be added as an extension to the building, providing soft lounge seating in an air- conditioned socialization space that will also serve as an additional, flexible space and dedicated area for racquets camps. • An ice-and-beverage station and new enclosed court-viewing area will also be created as part of the Center’s renovation. • The Center will be utilized in the afternoons and evenings to offer afterschool tutoring, and will also serve as a childcare area so parents can enjoy a date night at the club or attend an adults-only event. Facility improvements that Winter Park Racquet Club will complete by the late fall of 2026: NewTuscany Center The existing Tuscany House, used primarily for staff offices and administrative/storage space, had a poor layout with wasted space and offered no true opportunity or benefit for member usage. It also had limited parking and had deteriorated both inside and out, with structural and roof issues, water damage and a failing exterior that presented a negative impression as members and guests entered the club property. Merely addressing existing problems to make needed repairs and cosmetic upgrades would carry a cost in excess of $1 million. In addition to expanded and upgraded office and administrative space, a staff lounge, more organized maintenance and storage areas and a 33% increase in parking capacity, the new 6,300-sq. ft. Tuscany Center (see rendering and layout plan, pg. 4) will also provide these member amenities: • Full-service Racquets Pro Shop, expanded to offer more racquets inventory and include a new high-end logo shop. • Fitness Center with cardio, stretching and strength-training areas. • Men’s and Women’s Locker Rooms, each with infrared saunas and massage and stretch tables. • A refreshments area offering coffee, smoothies and grab-n-go items that can be enjoyed by members hitting the courts or the gym. has seen while its “Forward” plan was developed and put into motion. “Our average member age has dropped over 10 years, into the low 50s, fromwhat it was pre-COVID,” Munroe reports. “Performance is through the roof for the club as a whole in every area, and we really see it with what our families are doing— we're seeing our biggest summer camps, cover counts and member usage numbers ever." Full Activity To live up to the pledge that there will be minimal to no closure of amenities throughout the construction, WPRC’s racquets and maintenance operations will be relocated to the new Tuscany Center after it has been built, making room for the renovations of the Lakeside Pavilion and Nate Smith Center in phase two. Keeping everything running at full tilt has become even more important with the growth and changes the club “The family-centric atmosphere that we’ve created is really pulling people in, and what we’ll be adding now [through “WPRC Forward”] is just adding to the buzz,” Munroe adds. "We are truly a neighborhood club, with 90 percent of our members living within two miles. Every real-estate listing in the area now includes the [house’s] proximity to our club, and we constantly hear of people who are moving into the area specifically because of [WPRC].”

CAPITAL PLANNING Lump Sum or Monthly Payments? Making the Case for Two Perspectives on Capital Assessments We've noticed something interesting lately—more clubs are choosing lump-sum capital assessments over installment plans when determining how to ask members to help fund capital projects. It's not yet a wholesale shift in thinking, but it's been enough to catch our attention. The decision matters more than you might think. So we asked two of our consultants to weigh in on what they feel are the primary advantages offered by each approach—and then to discuss how clubs may be able to benefit by combining the best of both worlds. 6 The McMahon Report® The Case for: Lump-Sum Assessments By Christian Clerc, AIA VP of Club Consulting Let me be direct: If your club needs capital now, lumpsum assessments deliver it with a certainty that installment plans simply cannot match. The appeal is straightforward. If your club has maxed out its borrowing capacity but still needs to renovate the clubhouse or rebuild the pool, a lump-sum assessment gives you access to capital without adding debt to the balance sheet. And let's be honest—many memberships don't like debt. They view it as poor stewardship, and a lump-sum assessment honors that philosophy while still getting the work done. But the certainty that comes with lump-sum assessments is the real advantage. When you collect all the money upfront, you eliminate the risk of members not paying during an economic downturn or resigning before they've completed their payments. You've got the cash in hand, and you can move forward with confidence. In times of economic uncertainty, that's worth something substantial. There's also the administrative simplicity. One payment, one accounting entry—done. No tracking individual payment schedules, managing delinquencies for years, or consuming staff time with collection efforts that never achieve a 100% success rate. My colleague David Dewwill tell you about liquidity issues—and yes, that's a consideration. But here's what I see: Clubs that clearly communicate the case for a lumpsum assessment can get through the process successfully by providing adequate notice and offering shortterm bridge-financing options for members who need it. Members figure it out. They're resourceful people. The lump-sum approach forces clarity. Either the membership truly supports the project, or it doesn't. You find out quickly, and you move forward decisively. The Case for: Monthly Installment Plans By David Dew, CCM, CCE VP of Club Consulting While I respect the position stated by my colleague Christian Clerc, I've watched too many clubs damage their membership base with poorly timed lump-sum assessments to let his argument stand unchallenged. Monthly installment plans shine because they work for everyone across the age spectrum—and that matters because your membership isn't homogeneous. Younger members in the 35- to 50-year-old range typically have strong incomes and promising careers— but they're also managing mortgages, childcare costs, college savings, and all the competing financial demands of raising a family. A $300 monthly assessment over four years? They usually can work that into their budget. But cutting a $14,400 check may be a different conversation at the kitchen table—and one that too often ends with a resignation letter. Senior members present a different challenge. While they may have substantial net worth, we find they are often on fixed retirement incomes and emotionally resistant to large discretionary outlays late in life. They may not want to write a $25,000 check at age 83—but if they’re given a $400/month payment option over the

The McMahon Report® 7 next six years, that may feel manageable. It doesn't force decisions about estate planning or trigger an emotional reaction about whether to stay in the club at all. Let me also address an “elephant” we find in most every boardroom: Boards need to remember that wealth and liquidity aren't the same thing, and their average member may not necessarily be as passionate about the club’s next project, because they doesn't always have large discretionary amounts sitting in their checking accounts. To make a lump-sum payment, they may need to adjust investments at an undesirable time or disrupt their retirement strategies. This pressure can trigger an emotional response that inevitably leads to resignations. While this may be less of a concern for clubs that have waitlists, it’s can still lead to added tensions within the club culture. Then there is the case of newmembers, who can get hit especially hard. Soon after the they just wrote checks for substantial initiation fees, the club is now asking for another major payment. To some members, this process may even feel punitive. In soft or highly competitive markets, it can also create real membership-recruiting problems. A club with a history of large, one-time assessments becomes much less attractive than competing clubs where that hasn’t been the case. There are also governance benefits to the monthly-payment approach. Members are likely to approve installment assessments (or an increase in capital dues) more readily because they don't require an immediate financial disruption. Often, when using this method, a Board can dodge the heated political battles that fracture a membership and damage Board relationships for years. Yes, depending on a club’s bylaws, monthly plans can bring small collection risks and added administrative complexities—but those are manageable problems with much less potential disruption to a club’s membership and culture. Where We Agree: The Hybrid Approach Christian Clerc: David, I'll concede that pure lump-sum assessments aren't right for every club in every situation. David Dew: And I'll admit that spreading payments over too long a period can create real collection risks and administrative burdens. I think we can both agree that the clubs that are having the most success aren't choosing one approach exclusively. They're using hybrid structures—maybe 30% upfront with the balance due over three years, or 40% due immediately with 24 monthly installments for the remainder. This captures advantages from both models: immediate capital to start the project and reduced borrowing needs, but enough flexibility that allows members to manage the payments without financial crisis. You get some certainty while maintaining accessibility. Christian Clerc: The key is understanding your membership. What's their debt tolerance? What's their liquidity situation? David Dew: Also, what's their age distribution? And are you in a strong economic environment, or an uncertain one? All of those answers should drive your decision, and not what the club down the road is doing. Christian Clerc: And here's where we completely agree: The best assessment structures start with good member surveying. That's what we do at McMahon Group. We survey clubs to understand the membership. We find out what members want, what they're willing to pay for, and how they prefer to pay for it. Without that insight, you're guessing. And guessing with six- and seven-figure projects is how clubs get into trouble. David Dew: The right structure isn't a matter of ideology—it's a matter of evidence. Clubs should model different scenarios based on real data from their members. Then choose the approach that fits your club's specific circumstances. Because in the right circumstances, either approach can work. The question is: Which one works for your club, right now? Why Capital Fundraising, in Any Form, Has Become More Critical By Bill McMahon Sr., AIA, OAA Founder Remember that money does not grow on trees, and this applies doubly for private clubs. Golf courses, buildings and recreation facilities wear out and have changing needs. And while the ongoing replacement needs from just normal depreciation on capital assets are real, many clubs have relied on self-funding this depreciation out of normal, annual club-operating costs. This “solution,” however, has become increasingly harder to sustain—or justify. With demand surging for new recreation facilities like pickleball, expanding fitness options, and more Continued on page 15

A nyone can conduct a survey. The real question is: What do you do with the data once you have it? Today, conducting a survey has never been easier. But raw data without interpretation is just numbers on a page. This is where true expertise separates meaningful strategic direction from missed opportunities. Four Decades of Turning Data into Direction For over 40 years, McMahon Group has been conducting surveys for private clubs of all types. We've learned a fundamental truth: The survey is never the end goal. Rather, it's the beginning of a conversation that shapes your club's future. We don't view surveys as standalone tools but as integral components of comprehensive planning. Whether you're embarking on strategic planning or facility improvements, the starting point must be clear—understanding where your members are today, and where they want to go tomorrow. Planning Starts With Member Insight No strategic or facility plan should begin without understanding your members' experience with the club and their vision for its future. How do members currently experience your club? What do they value most? Where do they see opportunities? Without this foundation, even well-intentioned plans risk missing the mark and investing in renovations, amenities, programs or services that members find inadequate, while overlooking areas of genuine By Bill McMahon, Jr. Vice President & Director of Surveys MEMBERSHIP SURVEYS concern and ignoring their most pressing needs. The Interpretation Advantage When you've conducted thousands of surveys across hundreds of clubs over four decades as McMahon has, you develop an invaluable perspective. You recognize patterns and understand which responses signal genuine concerns, versus temporary frustrations. You can identify if a club faces fundamental strategic challenges or if only minor corrections may be needed. McMahon Group doesn't just tabulate responses. We interpret the story your data tells and identify priorities that will move your club forward—helping you understand not just what members said, but what it means. The Power of Benchmark Data Access to benchmark data adds another layer of value. How do your satisfaction scores compare to similar clubs? Are your concerns unique, or do they fit with industry-wide trends? This perspective prevents clubs from dismissing legitimate concerns or overreacting to industry norms. Benchmarking your results against McMahon’s extensive database of responses to comparable questions from similar clubs transforms your survey from an internal mirror into a competitive compass. Surveys as the First Step At McMahon Group, surveys are strategic catalysts—the first step in beginning the planning process. They open doors to deeper conversations about your club's identity, priorities, and future. Member feedback becomes the foundation for strategic decisions. Facility investments are prioritized based on documented needs, and not assumptions. Program development aligns with member preferences. Capital campaigns resonate because they address concerns that the members themselves articulated. The McMahon Difference Yes, anyone can do a survey. But not everyone can transform it into a strategic advantage. The McMahon Group difference lies in four decades of club-specific expertise, integration with planning processes, professional interpretation that turns data into actionable insights, a benchmark perspective, and strategic partnership throughout your planning journey. Your members have valuable insights to share. The question is whether you'll simply collect information or truly leverage it to shape your club's direction. The real value isn't in asking the questions—it's in knowing what to do with the answers. Beyond the Data: Why Expertise Makes All the Difference 8 The McMahon Report®

By Martha McMahon Acker - President The McMahon Report® 9 the KK&W She Leads Summit to provide programming specifically designed for women in executive positions. An Inspiring Setting Martis Camp, recognized as one of the finest resorts in North America, proved to be the perfect venue for this gathering. Nestled in the pocket of the High Sierra Mountains, the resort offers an impressive array of amenities including a private ski lodge, Tom Fazio-designed golf course, extensive park and trail systems, fine dining, and a luxurious spa. The breathtaking mountain views and stunning homes that blend seamlessly into the landscape created an atmosphere conducive to both reflection and connection. The timing— after the busy summer season but before the ski season begins—provided the ideal quiet setting for focused learning and networking. Diverse Perspectives, United Purpose The summit attracted women holding a variety of leadership positions within private clubs, including General Managers, Assistant General Managers, Finance Directors, Human Resources Directors, IT professionals, and Membership Marketing leaders. A gainst the stunning backdrop of California's High Sierra Mountains, the KK&W She Leads Summit presented by Kopplin, Kuebler & Wallace (KK&W) brought together women leaders in the private club industry for three days of connection, learning, and inspiration. Held at the prestigious Martis Camp in Truckee, California from September 21-23, 2025, this biennial event provided a unique platform for women executives to advance their careers through transformative educational sessions and meaningful networking. Among the attendees were McMahon Group’s Martha Acker and Alison Duffy, with McMahon Group also serving as an “inspiration sponsor” for the event. A Legacy of Leadership Excellence Summits sponsored by KK&W have a rich history rooted in executive excellence. What began as intimate gatherings of elite club managers seeking to challenge and learn from one another has evolved into a catalyst for executive leadership at the highest level. Over the years, the founding group has expanded their vision, introducing KK&W Summits for golf professionals, racquets professionals, and rising stars, with the introduction of an agronomy summit coming soon. Most recently added The event’s thoughtful organization, led by KK&W’s Marcie Mills, Hannah Eanes, Patty Sprankle, Annette Whittley, Holly Weiss, Bethany Taylor and Roxanne Filby, was evident throughout the three-day experience. The schedule struck an ideal balance between structured programming and downtime, allowing participants to absorb insights while also building genuine connections with their peers. Powerful Voices, Actionable Insights The speaker lineup featured accomplished women from diverse backgrounds, each bringing unique perspectives relevant to women navigating leadership roles: • Kate Buhler - Consultant/ Trainer/Author | Profitable To Train • Claire Cronin, Former U.S. Ambassador to Ireland • Dr. Carole Gallagher - Author, Corporate Advisor, Keynote Speaker • Mickie Mikeworth - Private Financial Consultant/Author • Chef Andi Van Willigan - Hospitality & Culinary Operations Expert/Executive Consultant & Visionary Leader • Kim Robak - Senior Counsel of Mueller Robak Law Firm KK&W She Leads Summit Empowering Women in Private Club Leadership INDUSTRY ENGAGEMENT Continued on page 15

By Frank Vain - Chairman While country clubs have been stealing the spotlight in the club industry lately (with over half now boasting waiting lists and record-breaking capital projects), city clubs are making an impressive comeback of their own. Having recently worked with and toured city clubs in New York, Boston, and Washington, D.C., I am pleased to report that city clubs are alive and well. But there's a balancing act happening as they work to maintain their traditional membership base while attracting younger members who bring different expectations about formality, programming, and usage patterns. The Current Landscape Most established city clubs in major metropolitan areas have bounced back strongly from pandemic uncertainty. They're showing growing membership demand and robust financial performance, especially those with quality guest rooms. Several factors appear to be driving this renaissance: • Craving connection: There's renewed interest in face-to-face interaction, especially among young professionals feeling isolated in increasingly digital workplaces. Many clubs now have waiting lists, particularly those that have successfully modernized while maintaining their distinctive character. • Remote work advantage: Surprisingly, the workfrom-anywhere trend has benefited many clubs. Members are using them as premium "third spaces" between home and traditional offices. Clubs offering quality workspaces and meeting rooms have seen daytime usage surge. • Adaptation is key: Success isn't universal, though. Clubs that have resisted adapting to changing member preferences or delayed infrastructure investments continue to struggle. They are also facing growing competition from newer models like Soho House, Equinox, Life Time, and other contemporary social and recreational clubs that appeal to younger demographics. • Market opportunities: Have you tried booking a hotel room in a major city recently? If so, you've likely experienced limited availability and sticker shock. City clubs with updated guest rooms can capitalize on their existing infrastructure by pricing them just below the local average daily rate. While this may represent the highest rates these clubs have ever charged, members and visitors will still perceive them as offering excellent value compared to market alternatives. • Economic resilience: While market volatility has impacted membership in certain markets, the affluent professional class that forms most clubs' membership base has remained relatively stable. Lifestyle and Demographic Shifts There has been a notable pivot to attracting younger professional members. Many historic clubs are modernizing their offerings while carefully preserving their heritage through: • Professional focus: Programming now emphasizes networking and career development, moving beyond traditional social functions. Clubs are hosting speaker series, mentorship programs, and industry-focused events. • Relaxed formality: Many clubs have significantly relaxed their traditional dress codes while still maintaining standards. Business casual is now acceptable in most spaces, and casual-dining venues often operate alongside formal restaurants. • Work-friendly amenities: The pandemic accelerated the trend toward dedicated coworking spaces, private meeting rooms, and robust digital infrastructure. • Wellness integration: There's increased focus on fitness facilities and programming around mental health, nutrition, and work-life balance. • Alcohol-optional socializing: Clubs are embracing the growing non-alcoholic trend popular among late Millennials and Gen Z by expanding their nonalcoholic beverage programs. State of the Club Industry: City CLub Trends 10 The McMahon Report®

Emerging Challenges • Digital expectations: Members increasingly expect sophisticated mobile apps for dining reservations, event registration, and networking. Many clubs struggle to provide effective digital platforms and the increasingly complex technology infrastructure needed to support broadcast-quality video conferencing, seamless payments, and robust cybersecurity. • Evolving F&B demands: The food-and-beverage landscape is critical, with members expecting both health-conscious options and exceptional culinary experiences. This includes demand for plant-based offerings, specialized diets, and unique beverage programs. The challenge lies in maintaining traditional club dining while innovating. • Network value: Multi-club networks and reciprocal relationships are becoming more valuable as members travel and work remotely. Some clubs are forming new alliances or strengthening existing networks. • Talent competition: Clubs face intense competition for quality staff, particularly in food service and member-experience roles. This often necessitates rethinking compensation, benefits, and career development. • Family inclusion: Even traditionally businessfocused clubs find that members want more opportunities to involve their families, from educational programs for children to multigenerational events. Facility Improvements Addressing these trends requires reimagining physical spaces: • Flexible workspaces: Clubs need a mix of quiet individual work areas, small meeting rooms, and Starbucks-style coffee shops to support digital nomads looking to work from anywhere. Good soundproofing and enterprise-grade technology infrastructure are essential. • Multi-purpose dining: Food and beverage spaces need updating to accommodate various use patterns - from quick-casual dining to traditional formal meals and bar/lounge spaces that transition from daytime work to evening socializing. • Premiumwellness areas: Fitness facilities need to match or exceed high-end gym offerings, including proper air handling, quality changing facilities, and spaces for classes or personal training. Recovery spaces for stretching or meditation are increasingly popular. • Reimagined entry areas: Reception spaces often need redesigning to better manage the flow of members throughout the day, including package handling, seamless check-in systems, and comfortable waiting areas. • Infrastructure updates: Less visible but critical improvements include HVAC systems, increased electrical capacity for device charging, and proper soundproofing between spaces. The key challenge is implementing these improvements while preserving the architectural character and distinctive atmosphere that makes city clubs special. Summing Up The city club model is demonstrating remarkable resilience and adaptability. The most successful clubs are managing to honor their traditions while evolving to meet the changing needs of a younger, more diverse membership base. They are transforming from formal dining establishments into dynamic, multi-purpose spaces that serve as professional hubs, wellness centers, and community gathering points. What remains unchanged is the core value proposition: providing a distinctive "third place" that offers community, connection, and a sense of belonging in increasingly fragmented urban environments. The clubs that understand this balance - tradition with innovation, exclusivity with accessibility, formality with comfort - are not just surviving but thriving in this new era. The McMahon Report® 11

T he pandemic brought major changes to dining routines, and especially with howmore diners discovered the pleasures of outdoor dining and developed a lasting preference for it. Originally built up by clubs as they scrambled to still provide service while complying with COVID’s newly imposed health and social-distancing regulations, outdoor dining is now something that virtually every club wants to make the most of—and often expand as much as possible—when they talk with us at McMahon Group about Master Plans for their properties and facilities. And private clubs do have a distinct advantage when it comes to outdoor dining—while the pandemic also prompted commercial restaurants, bars and hotels to make a big leap into outdoor service, those places simply don’t have the properties or space to do it as well as clubs can. Increasingly, in fact, municipalities are cracking down on how outdoor CLUB ARCHITECTURE Maximizing Clubs’ Outdoor-Dining Advantage venues have crowded their streets and sidewalks and created new sanitation issues—all problems that don’t exist in a club setting, which gives clubs a leg up in earning favorite-place dining status with their members. Having a great outdoor-dining program at your club, however, requires much more than just opening the clubhouse doors and finding as many places as possible to set out more tables and chairs. As we help clubs with their planning, here are key points we emphasize and ideas we offer to help make every outdoor-dining experience be “cool and fresh”— which is, after all, at the core of what al fresco literally means. A Full Variety of Outdoor “Rooms” Many clubs now strive to have a variety of indoor dining venues that have different themes (steakhouse, pub food, etc.) and are for different audiences (adult, casual, family). It should be no different when planning all of the places where outdoor environments and service can be provided, too. While the main showcase for clubs’ outdoor settings will always be their unique long-distance views over beautiful, rolling landscapes of golf courses and nature that would have been the envy of European monarchs—and that blow away anything offered at a commercial restaurant— don’t sleep on also finding ways to offer service that take advantage of unique “mid-distance” and “near” views elsewhere on the property. Already-existing elements such as outdoor rooms, porches, decks, terraces, patios and lawns all offer opportunities to scale and theme different outdoor environments by framing what can be seen from them to offer great service around different styles of open-air gathering. These spaces also have the added benefit of often being in closer proximity to the clubhouse’s existing kitchens and service areas, which can help with the behind-the-scenes service model for food delivery and furniture storage, as well as for By Glen Selligman, AIA Director of Architecture 12 The McMahon Report® UNIVERSITY CLUB OF CHICAGO

can arrive and join in with no sense of awkwardness. This space promotes the society that we all seek in club membership. • Beautiful outdoor lighting schemes can further highlight the impressive design features and views. • Positioning outdoor familydining venues near lawn areas will help provide needed space for those inevitable times when youngsters just can’t sit still at the table anymore. In many cases, these areas can also double as outdoor event spaces, where large gatherings and special attractions like Easter Egg rolls can highlight seasonal or life events. Providing Full Comfort Zones Outdoor settings do present some additional requirements for keeping diners comfortable, especially as more people want to be outside through as much of the day—and year—as possible. But with proper planning, outdoor facilities and space can be designed to mitigate the uncertainties and extremes of weather or other conditions like sun exposure and even car lights at night, so members can be assured of reliable outdoor-dining experiences. To help ensure maximum outdoor comfort, clubs are now replacing umbrella tables and canvas canopies with hard-roof porches that quicker shifts of operation as different parties use the same areas in different ways throughout the day, evening and night. The Right Touch and Feel With every view that’s offered, the emphasis should be on providing comfortable furniture that’s arranged to provide the feel of a spacious setting. And here are some other touches and features that can add to the special nature and appeal of any outdoor setting: • Fireplaces or fire pits—always a “sure-fire” way to set the scene for great, serendipitous gatherings. • Landscape elements and design with flowers and plants, to create a garden environment. • Fountains, which help create white noise to mute other distracting sounds, and ponds or other water features that add serenity to the view. • As activity centers that create visual interest, bars create the opportunity to offer members service in an environment that is much more conducive to conversation than noisy indoor bars (and can also help to reduce the indoor crowds). And outdoor kitchens set the scene for engaging service beyond the usual barbecue grill, with features like pizza ovens and action stations. • Don’t forget the TVs for outdoor dining and bar venues. Bar venues with TVs are vital in creating a relaxed atmosphere, where friends and members can gather together and people allow for moveable walls, screens or curtains. This not only provides improved reliability and service, it can also be more effective in framing the views that clubs want their members to enjoy. Features like built-in radiant heat, lighting, vertical shades, and fans are also being employed to help add to diners’ comfort and alleviate any concerns that may lead to second thoughts about making the club the go-to outside dining spot. Prompt and efficient service is also just as key for diner comfort outdoors as it is indoors, making it important to include well-equipped and strategically positioned service stations in an outdoor plan. Clubs with great outdoor settings that we’ve seen (some of which are pictured here) include the University Club of Chicago, Denver Country Club, Atlanta Athletic Club, the Country Club of Detroit, Columbine Country Club, and The Briar Club in Houston. Others that we’re now helping to plan will be at Bald Peak Colony Club, Harbour Ridge Yacht & Country Club, Winter Park Racquet Club (see pgs. 3 to 5) and The Elkridge Club. Where are the best spots for outdoor dining at your club? Howmuch space is needed to accommodate all of the outdoor meals, events and activities your members want you to provide? How can your staff service these places and make them a successful, sustainable part of your club culture? McMahon is available with our First Impressions Visit (see pg. 16) to meet with you to understand the needs of your club and chart a course for more engaging outdoor experiences with your members. The McMahon Report® 13 DENVER COUNTRY CLUB ATLANTA ATHLETIC CLUB

By Bill McMahon Sr,. AIA, OAA - Founder is dependent on many factors, the most important is first and foremost understanding your club’s Mission of: • Who it serves, • What it provides, • What is its quality goal, and • What makes the club unique. Properly including these aspects as part of shaping and following a club’s Mission is the essential part of a Strategic Plan that must guide facility planning and investment by ensuring that money will be spent wisely and lead to maximum results. 4. Appoint a very representative group of influential members and Board members to a Facility Planning Committee that will work with the club planner (not the final architect) to develop an overall Facility Master Plan for the clubhouse and golf/recreation facilities, and to recommend the most important club improvements that are financially possible. 5. Present recommended initial club facility projects to members for approval. S ome clubs today like to take shortcuts with their facility-construction projects, skipping strategic and master planning to only do what they feel are the most urgent or essential facility projects without any consideration of the club’s long-range vision for its future. This shortsighted approach attempts to “solve” today’s facility problems by kicking the can down the road, only to create bigger and more expensive problems in the future. At McMahon, though our extensive facility work serving over 2,000 clubs and helping them develop successful facility programs that get funded and approved, we’ve learned that these key steps must always be included and followed in a successful facility-planning process: 1. Understand the Board and manager’s input on why their club needs improvements. 2. Survey the club’s membership to learn what the members want and will pay. 3. Develop/refresh the club’s Strategic Plan with the Board and manager to clearly understand the club’s Mission and facility goals. While achieving overall club success 6. With the building committee and design professionals, design, build and finance the members’ approved projects. Over the years, this has proved to be the most effective and successful strategic facility-planning process for club design and construction, because it: • Gets the most member support in achieving the best clubhouse and recreation designs, raising the most funds, and attracting the most member usage. • Attracts new and retaining existing members with useful and attractive facilities that support their club’s Mission. • Builds membership consensus on developing the projects that most members want and support. • Develops funding plans that members can afford and that are financially viable. • Keeps clubs competitive in their marketplaces with sound strategic and facility planning. So in planning the best way to improve club facilities, remember that to ensure success—and not sell your club and its membership short—the process must include all of the steps that are vital to effective long-range planning. 14 The McMahon Report® STRATEGIC PLANNING Avoiding Shortcuts, and Shortsightedness, in Long-Range Planning

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