Microsoft co-founder Paul Allen’s private Hollywood club is not very expensive could be following the strategy of Soho House, which bets on food and drink revenue over membership fees

Jun.June 16, 2017 04:30 PM
Paul Allen (Getty) and a rendering of the tea room at the in Hollwood (via marketing materials)

As more private clubs take on the L.A. market, Microsoft co-founder Paul Allen is not limiting membership to the uber-wealthy.

Joining his private club in Hollywood will cost you $2,000 a year plus a one-time joining fee of $350, making it just a touch cheaper than the rates at the ultra-trendy Soho House, The Real Deal has learned.

The so-called Hospital Club, or h.Club, founded in London by Allen and musician Dave Stewart, is making its first push for members, offering discounted rates of $1,200 and “founding member status” to “creative industry influencers” who work in arts, entertainment or technology, according to marketing materials obtained by TRD.

h.Club seems to be following a similar strategy to Soho House, which bets on revenues from from food and drink sales over membership fees and invests in its own real estate.

At Soho House, membership fees only account for roughly 21 percent of its revenues. The company rakes in another 53 percent of its revenues from food and drink sales, a company spokesperson told TRD earlier this year

L.A. has seen several members-only clubs come to the market in recent years. Neuhouse — a co-working club — opened last year, with membership rates that range from $200 and $1,250 per month. Sunset Tower hotelier Jeff Klein is renovating the San Vicente Inn into an ultra-exclusive luxury club, dubbed the San Vicente Bungalows, set to open in 2018.  Soho House’s Arts District location, dubbed Soho Warehouse, has faced several delays. It was last reported to be opening in the summer of 2018.

Allen scooped up the 1717 Vine Street property, which was formerly the Redbury Hotel, in January and is pouring more than $10 million into its redevelopment. It is scheduled to reopen in April 2018 with a screening room, recording studio, rooftop restaurant with a desert garden, performance space, pool and several lounges. The club will occupy the first five floors of the building. The development will also include a 36-bedroom hotel component.

The Hollywood location will be Hospital Club’s first U.S. outpost. It first opened in London in 2004.

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