State of the Club Industry: City Club Trends

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 work-from-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 non-alcoholic beverage programs.

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 business-focused clubs find that members want more opportunities to involve their families, from educational programs for children to multi-generational 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.
• Premium wellness 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.