One of the swankiest private members clubs in central London has bemoaned a “challenging economic backdrop” after it suffered a loss of nearly £4m.
Mayfair-based The Arts Club, which was founded in the 1860s by Charles Dickens and Anthony Trollope and has been frequented by the likes of Beyoncé, Jessie J and Pippa Middleton, incurred the loss in part due to a multi-million pound write down in the value of its investment in a nearby luxury wellness centre.
The club, which is based in an 18th century townhouse on Dover Street, posted total turnover of £30.9m in 2024, a rise of 1.3 per cent on the previous year amid an increase in membership revenue, according to accounts recently submitted to Companies House.
But a previous pre-tax profit of £360,000 slumped to a loss of £3.8m for the year.
“2024 began amid expectations of a softer market following the strong recovery in 2023,” The Arts Club directors said in a statement.
“As the year progressed, persistent UK inflation and higher interest rates created a challenging economic backdrop, leading to reduced consumer spending in the leisure and hospitality sectors.
“This was most evident in the food and beverage division, while membership income remained resilient.”
Wellness centre not going well
The bulk of the loss derives from a whopping £6.4m write down in the value of its stake in Lanserhof at The Arts Club, a joint venture between the club and Austrian luxury wellness group Lanserhof, the firm behind Europe’s “most expensive health resort.”
The wellness centre, located a few yards south of the club on Dover Street, has sucked millions of pounds of resources from the club, with close to £20m in debts owed to its shareholders by the end of 2024.
The club ultimately reached a settlement over the ownership of the centre, registered as Artslans Urban Limited (AUL), with its joint venture partners Lanserhof, such that The Arts Club became the sole shareholder.
“The company’s temporary full ownership of AUL allows enhanced control and oversight of operations while preserving business continuity,” The Arts Club said.
“The company is actively exploring new partnership or investment opportunities to support AUL’s future development and ensure long-term financial stability.”
The Mayfair townhouse home to the club was sold for £90m in 2016 by a consortium led by property developer Gary Landesberg and Arjun Waney, the co-founder of fashionable London restaurants Roka and Zuma. The club has a has a 25-year lease and was not affected by the purchase.