One of London's most exclusive private members' clubs has reported a significant financial loss, blaming a difficult economic climate and a costly investment in a luxury wellness centre.
Historic Club Sees Profits Vanish
The Arts Club in Mayfair, a society fixture founded in the 1860s by literary giants Charles Dickens and Anthony Trollope, saw its fortunes reverse dramatically in 2024. Despite achieving a turnover of £30.9 million, a slight increase of 1.3% from the previous year, the club's pre-tax profit of £360,000 transformed into a substantial loss of £3.8 million.
Club directors pointed to a "challenging economic backdrop" characterised by persistent UK inflation and higher interest rates, which they said reduced consumer spending in leisure and hospitality. While membership income held firm, the club's food and beverage division felt the pinch.
Wellness Centre Investment Turns Sour
The primary driver of the loss was a massive £6.4 million write-down on the value of its stake in Lanserhof at The Arts Club. This joint venture with Austrian luxury wellness group Lanserhof, located just south of the club on Dover Street, has been a significant financial drain.
By the end of 2024, the wellness centre venture, registered as Artslans Urban Limited (AUL), owed close to £20 million in debts to its shareholders. The situation led to a settlement with Lanserhof, resulting in The Arts Club becoming the sole shareholder of AUL.
"The company’s temporary full ownership of AUL allows enhanced control and oversight of operations while preserving business continuity," the club stated. It is now actively seeking new partners or investors to ensure the wellness centre's long-term stability.
Resilient Base Amid Property Shifts
The club, which counts celebrities like Beyoncé and Pippa Middleton among its guests, operates from an 18th-century townhouse on Dover Street. The building itself was sold for £90 million in 2016 by a consortium led by property developer Gary Landesberg and restaurateur Arjun Waney. The club's operations are secured by a 25-year lease and were unaffected by this property transaction.
This financial result highlights the pressures facing even the most established high-end venues in London's post-pandemic economy, where ambitious expansions can carry severe financial risk.
