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Could Your Property Become a Private Members Club? Lessons from a Memphis Feasibility Study

 



Private members clubs are no longer limited to major global cities such as London, New York, or Los Angeles.

Over the past decade, the success of brands such as Soho House, The Ned, and NeueHouse has demonstrated growing demand for hospitality concepts that combine community, wellness, dining, workspaces, and exclusive experiences under one roof.

Recently, DeronServices completed a feasibility study for a proposed Lifestyle Hospitality & Private Members Club in Memphis, Tennessee. The project explored whether a secondary U.S. city could support a premium membership-driven hospitality destination.

The findings revealed several valuable insights for property owners, developers, and investors considering similar concepts.

Why Private Members Clubs Are Growing

Consumer preferences have changed dramatically.

People increasingly seek:

  • Meaningful social connections

  • Flexible work environments

  • Wellness-focused lifestyles

  • Curated experiences

  • Community-driven destinations

Traditional hotels, restaurants, and coworking spaces often address only one of these needs. Private members clubs combine them into a single lifestyle ecosystem.

This creates multiple revenue streams while increasing customer loyalty and engagement.

The Memphis Opportunity

One of the most common misconceptions is that private members clubs can only succeed in large metropolitan areas.

Our analysis identified several factors supporting demand in Memphis:

  • A metropolitan population exceeding 1 million residents

  • A growing community of entrepreneurs, professionals, and creatives

  • Increasing adoption of remote and hybrid work

  • Rising interest in wellness and experiential hospitality

  • Limited direct competition offering a fully integrated members-only concept

These characteristics are increasingly common across many secondary cities throughout North America.

Building a Diversified Business Model

One reason private members clubs attract investors is their ability to generate income from multiple sources.

The proposed Memphis concept included:

Membership Fees

Recurring monthly and annual subscriptions create predictable cash flow.

Food & Beverage

Restaurants, bars, lounges, and private dining experiences generate daily revenue while enhancing member engagement.

Boutique Hospitality

A small luxury hotel component can support visiting members, event attendees, and leisure travelers.

Events & Experiences

Corporate gatherings, networking events, wellness retreats, and private celebrations provide high-margin revenue opportunities.

Wellness Programs

Fitness, spa services, recovery treatments, and wellness memberships continue to be among the fastest-growing hospitality segments.

Retail Sales

Branded merchandise and curated lifestyle products create incremental revenue while extending brand visibility.

Financial Results

The feasibility study projected:

  • Estimated Investment Requirement: $4.7 Million

  • Year 5 Revenue: $5.5 Million

  • Year 5 EBITDA: $1.4 Million

  • Project IRR: 23%

  • Payback Period: 6.7 Years

While every project is unique, these results demonstrate how diversified hospitality models can create attractive long-term returns when supported by strong market fundamentals.

Before You Invest: The Importance of a Feasibility Study

Many entrepreneurs become excited about a concept before validating whether the market can support it.

A professional feasibility study helps answer critical questions:

  • Is there enough demand?

  • Who is the target customer?

  • How much investment is required?

  • What are realistic revenue expectations?

  • What risks exist?

  • Can the project generate acceptable returns?

Answering these questions before construction begins can save substantial time and capital.

Could Your Property Support a Similar Concept?

An underutilized commercial building, historic property, warehouse, hotel, or mixed-use site may hold significantly more value than its current use suggests.

The key is identifying the right concept and validating it through professional market research and financial analysis.

At DeronServices, we help entrepreneurs, developers, and investors transform ideas into investment-ready opportunities through:

  • Feasibility Studies

  • Business Plans

  • Financial Modeling

  • Market Research

  • Investment Analysis

  • Investor Presentations

If you are considering a hospitality, real estate, or lifestyle development project, contact us to discuss how we can help evaluate its potential.

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