Inside the ultra-exclusive world of private clubs with SVB owner Jeff Klein

The Rise of Private Clubs and Their Purpose

• The private club industry is currently experiencing a boom, with people seeking spaces where they can live and interact without the influence of social media, and this is what San Vicente Bungalows (SVB) owner Jeff Klein aims to provide, a space where people can be themselves without the pressure of performance, 10s.
• Jeff Klein's private clubs are notoriously hard to get into, and he rejects many billionaires, as he believes that exclusivity is not just about wealth, but about creating an interesting and curated environment where people can feel a sense of belonging and psychological safety, 2m6s.
• Klein's overarching philosophy is to sell a sense of belonging, human connection, and trusted interaction, rather than just luxury hospitality, and he achieves this by curating a unique atmosphere and crowd in his clubs, 42s.
• Klein started his career in the hotel business as a bellman and worked his way up, learning from his mentor, and he was initially skeptical of the private club concept, but after seeing the success of Soho House in Los Angeles, he decided to create his own private membership club, San Vicente Bungalows, 4m30s.

Jeff Klein's Business and Philosophy

• Klein's business includes not only his private membership clubs, but also his hotel business, including his part-ownership of the Sunset Tower, where he has a partner and has sold a piece of the business, 6m40s.
• The private clubs that Klein owns, including San Vicente Bungalows, have a strict no-photos and no-phone-calls policy, allowing members to feel secure and relaxed in the knowledge that their interactions and experiences will remain private, 1m30s.
• The private membership business was entered into after gaining experience in the hotel business, which provided knowledge of how to create an experience for customers and deliver food and beverage, with the membership piece being the part that required learning, and mistakes were made along the way 10s.

The Boom in Private Clubs and Its Drivers

• There is currently a boom in private clubs, with many people trying to enter the membership club business, and this boom is driven by people's profound loneliness and digital exhaustion, as technology has connected everyone but emotionally disconnected them from each other 2m6s.
• The boom in private clubs is filling the vacuum left by weakened institutions that used to create repeated human interaction, such as churches, town halls, and civic groups, and people are seeking tribes, ritual, familiarity, and belonging, which clubs are providing 2m6s.
• The increase in digital life has made physical human interaction more valuable, and people are willing to pay for this, which is why private clubs are becoming more popular, and it's not just the rich who are joining, but also younger people who are seeking meaningful experiences 2m6s.

The Influence of Soho House and the Expansion of the Private Club Movement

• The Soho House is credited with helping spark the private club boom, having opened its first club in London in 1995 and now having 46 locations and over 200,000 members, and this boom is not limited to major cities like New York and London, but is also happening in smaller cities like Jacksonville and Lexington 2m6s.
• The key to a private club's success is finding its niche and understanding how to provide a sense of community, rather than trying to be everything to everyone, and the good clubs will be able to thrive in the future, with many more clubs expected to open 2m6s.

Attracting Younger Generations to Private Clubs

• Younger generations are joining private clubs in droves, despite the cost, because they value real-life interaction and experiences, and are willing to splurge on this because it's more meaningful to them than material goods, which are easily available online 2m6s.
• The spending habits of people have changed, and clubs are one of the beneficiaries of this change, with the goal of creating a unique experience for members 10s.

The Vision for the Future of Private Clubs

• The aspiration is to be the "Hermes of clubs," focusing on quality over quantity, with each club being individual and specific to its location, and becoming a part of the community's fabric 2m6s.
• The quality of club members is crucial, and the selection process is rigorous, with a roughly 7,000-person wait list, prioritizing candidates who are engaging and rejecting some billionaires who may not be interesting 4m42s.

Membership Selection and Criteria

• The criteria for selecting members include curiosity, kindness, creativity, social intelligence, and energy, with the goal of creating a chemistry in the room and curating behavior and culture 6m15s.
• The selection process involves an application with questions such as "What's your favorite restaurant and why?" which reveals a lot about a person's character, as well as more traditional questions about the applicant's background and personal life 10m10s.
• A committee is involved in the selection process, and they aim to create a unique atmosphere by being tough about who is accepted as a member, with the goal of delivering a high-quality experience 12m20s.
• The process of selecting members for a private club involves assessing their preferences and values, and a person's favorite restaurant can be a telling indicator of their character, with some establishments being too flashy or expensive, like Sing on Sing, 10s
• In contrast, a favorite restaurant like Anchor Bar in San Francisco's Castro district can be a meaningful choice, offering a unique and authentic experience with delicious food, making it a special and happy place for those who frequent it, 2m6s
• When evaluating potential members, the goal is to find interesting individuals with diverse backgrounds and perspectives, including occupational, sexual, and age diversity, to create a dynamic and engaging community, 4m30s

Creating a Diverse and Inclusive Community

• The importance of diversity is emphasized, with a focus on creating a welcoming environment for people from all walks of life, including trans individuals, and avoiding a dominance of any one industry or demographic, 6m0s
• The ideal private club experience is likened to a great dinner party, with a mix of ages, professions, and personalities, much like a wedding, which often brings together multiple generations and creates a unique and memorable atmosphere, 8m0s

Boundaries, Privacy, and the Club Culture

• The concept of boundaries is also discussed, with the understanding that every meaningful community has boundaries, and the key is to create a culture within those boundaries that is valuable, human, and respectful of members' privacy, 10m0s
• Privacy is highlighted as a crucial aspect of the private club experience, with the notion that it is the ultimate luxury in today's world, where social media and influence culture can make it difficult for people to let loose and be themselves in public, 12m0s

The Role of Privacy in the Digital Age

• The concept of private clubs has gained popularity, particularly among celebrities and individuals who value their privacy, as they often feel embarrassed or exhausted from being constantly in the public eye, and this trend is also driven by the desire to escape the digital world, 10s.
• Private clubs like the one owned by Jeff Klein have implemented rules such as not allowing phone calls or photos to be taken, and while texting and googling are not strictly prohibited, the goal is to create a space where people can connect and live in the moment without the pressure of being watched or filmed, 10s.
• The idea behind these private clubs is to provide a sense of psychological safety, where people can exhale and be themselves without feeling the need to perform or document their experiences on social media, 2m6s.

The Impact of Social Media on Hospitality and Nightlife

• Social media has changed the hospitality industry and nightlife in general, with people constantly documenting their experiences and feeling anxious about being watched or judged, and private clubs offer a refuge from this kind of pressure, 2m6s.
• The use of technology, such as phone jammers, has been explored as a way to encourage people to put down their phones and engage with each other in a more meaningful way, with the goal of creating a space where people can focus on the present moment and connect with others without distractions, 4m30s.
• The rise of social media has turned life into a performance, and private clubs are trying to provide a space where people can live again without the fear of being judged or photographed, and this trend is not limited to celebrities, but is something that many people can relate to, 6m30s.

Rules and Technology in Enhancing the Club Experience

• The use of technology, such as phone jammers, has been explored as a way to encourage people to put down their phones and engage with each other in a more meaningful way, with the goal of creating a space where people can focus on the present moment and connect with others without distractions, 4m30s.
• The rise of social media has turned life into a performance, and private clubs are trying to provide a space where people can live again without the fear of being judged or photographed, and this trend is not limited to celebrities, but is something that many people can relate to, 6m30s.

Discretion and Anonymity in Private Clubs

• Private clubs offer a unique space where members can maintain discretion and anonymity, allowing them to bring different guests on different nights without fear of judgment or publicity, and this aspect is not only relevant to personal relationships but also to business dealings 10s.
• The private nature of these clubs makes them an ideal location for high-profile individuals to conduct business or resolve conflicts, as seen in the example of Ted Sarandos and Steven Spielberg, who had a public feud and later met for dinner at the San Vicente club to discuss their issues 42s.

Private Clubs as Community and Social Spaces

• Private clubs also serve as a community for their members, providing a space for socialization and connection, much like traditional organizations such as the Lions Club, the Elks Club, and the Rotary Club, which used to be central to community building 2m6s.
• The organizing principle of these private clubs is centered around human chemistry, aiming to create an environment where interesting, socially additive people can connect and interact in a discreet and intimate setting, valuing curiosity, creativity, and connection over status or profession 2m6s.

Curating Membership and Maintaining Club Culture

• To maintain this unique atmosphere, private clubs have a curated membership process, which involves a committee that carefully selects new members based on factors such as age, occupation, and behavior, ensuring that the club's emotional tone is preserved 2m6s.
• When dealing with individuals who are not selected for membership, the response is often that it's not a personal rejection, but rather a result of the club's efforts to curate a diverse and balanced membership, with the goal of creating a specific emotional tone and community dynamic 2m6s.

The Membership Process and Its Challenges

• Private clubs have an exclusive membership process, where potential members need to be nominated by an existing member, and they have to want to be a part of the club, as it is not something that can be forced upon them 10s.

Addressing Criticisms of Exclusivity and Elitism

• The idea of private clubs is often criticized for being a way for the rich to isolate themselves from the concerns of everyday people, but it can be argued that this is not unique to private clubs, as people also spend money on expensive restaurants, country clubs, and vacation spots 2m6s.
• The desire for belonging, trust, intimacy, familiarity, and human connection is universal, and luxury clubs cater to this desire by providing an elevated experience, which comes at a cost, but it is possible to create clubs that deliver the same experience at a lower cost 4m30s.

Expanding the Concept of Clubs Beyond Traditional Models

• The concept of a club can be applied to various settings, such as a hardware store or a grocery store bar, where people can come together and connect over common interests, and this can be a unique and appealing experience 6m15s.
• The community aspect of clubs and other gathering places is particularly appealing to younger people, who are seeking a sense of belonging and connection, and this can be seen in the way people are drawn to churches, not just for religious purposes, but also for socializing and meeting new people 8m40s.

The Evolution of Private Clubs Toward Emotional and Psychological Needs

• Private clubs have evolved from being about status and access to providing emotional comfort and psychological health safety, with members attending events like ceramic painting classes to meet new people and form connections 10s.

Early Career and Mentorship in the Hospitality Industry

• The career path of the individual in question began as a bellman at the Franklin Hotel in New York in 1993, where they worked their way through various departments, including housekeeping, room service, and front desk, without an initial entrepreneurial vision guiding them 2m6s.
• The individual attributes their success to luck and the guidance of their mentor, Bernard Goldberg, a pioneer in the boutique hotel industry, who taught them the importance of finding value in unexpected places 2m6s.
• A key lesson learned from their mentor was to always look for value where others cannot, as seen in the purchase of the Sunset Tower, which was previously considered a "dump" but was bought for $18 million 2m6s.

The Transformation of the San Vicente Inn

• In 2013, the individual purchased the San Vicente Inn, a run-down, clothing-optional, men-only motel, and transformed it, despite initial difficulty in securing investors due to its notorious reputation 6m42s.
• The individual's husband, John Goldwyn, whose grandfather was Sam Goldwyn and who has experience in the film industry, helped secure a loan by hosting a dinner with movie stars and bankers, demonstrating the importance of creative problem-solving and networking 8m30s.
• The process of transforming a run-down motel into a glamorous and beautiful private club was challenging, with the owner having to conduct tours early in the morning to avoid the presence of existing patrons, and the place has now become a stunning location that feels like it has been there forever 10s.

Financing and Investment in the Club and Hotel Businesses

• The owner had to put together investments from various sources, including a construction loan and celebrity endorsements, and later found a major investor, Ohana, through a contact named Franco Formulary, who helped to buy out the initial investors and provided further financial support 2m6s.

Future Goals and Expansion Strategy

• The owner's current goal is to sell a stake in the company to fund global expansion, but is cautious about growing too quickly, as luxury brands often lose their unique culture and atmosphere when they expand too rapidly, and instead aims to build institutions that will endure 4m42s.
• The owner is considering expanding to new cities, but is selective about the locations and wants to create places that feel like they have been there forever, rather than just following trends, and has not yet considered specific cities like Washington or Seattle, but thinks they could be interesting options 8m10s.
• The owner has a distinct vision for the private clubs, wanting them to feel like long-established institutions, and is careful about the investment and expansion process to ensure that the unique culture and atmosphere of the clubs are preserved, and is not trying to build hundreds of clubs, but rather a few select locations that will stand the test of time 10m40s.

Location Selection and Vision for New Clubs

• The ideal city for a new club is not necessarily a major city like Los Angeles, New York, or San Francisco, but rather a location with a unique physical space that sparks inspiration 10s.
• There is a desire to open a club in Paris, driven by a personal love for the city and its culture, with the owner and their husband taking French lessons and being self-described Francophiles 1m42s.
• The process of finding a new location is often spontaneous, with the owner relying on instinct and a personal connection to a space, rather than a deliberate search for a specific city or location 2m6s.
• The owner is critical of certain establishments, such as the Ned, which they find to be "performative" and lacking in heart, emphasizing the importance of a location having its own unique soul and character 4m10s.

Maintaining Exclusivity and Emotional Consistency

• The owner believes that every location must have its own distinct personality and atmosphere, and that this is essential for creating a sense of community and exclusivity among members 6m15s.
• Chip Conley, a fellow hospitality entrepreneur and founder of the Modern Elder Academy, poses a question about how to balance scale and soul in the business, highlighting the potential tension between growth and maintaining exclusivity 8m40s.
• The owner responds by emphasizing the importance of restraint, curation, and standards in protecting the soul of the business, and notes that exclusivity comes from emotional consistency and a sense of trust and intimacy among members, rather than just price 10m20s.

Challenges in the Private Club Market and the Risk of Oversaturation

• The value of exclusive brands like Hermes lies in their ability to maintain high standards, rather than maximizing distribution, and this principle can be applied to private clubs, where having a few exceptional clubs with soul is preferable to numerous emotionally empty ones 10s.
• The private club market may become oversaturated if too many clubs are created, focusing on being social scenes or real estate products rather than genuine communities, which can lead to their failure 2m6s.

The Role of Private Clubs in Filling Community Gaps

• Most cities still lack real community and gathering spaces, and the creation of new clubs can help fill this gap, as seen in examples like Brett Morgan Sachs' new club in Jacksonville, Florida 2m6s.
• To succeed, private clubs need to focus on creating emotional attachment and long-term loyalty among their members, rather than just generating buzz, which can be easily achieved but is ultimately fleeting 2m6s.

Changes in the Hospitality Industry and Competition

• The hospitality industry has undergone significant changes, with the rise of boutique hotels, vacation rentals like Airbnb and VRBO, and shifting economic models, which has forced hotel owners to adapt their strategies and compete in a different landscape 2m6s.
• The ban on Airbnb in New York has had a significant impact on the hotel industry, with some arguing that it has driven up hotel room prices without necessarily improving the overall hospitality experience 2m6s.
• As a hospitality professional, there is an appreciation for the ban on Airbnb in certain cities, as it helps to protect the hotel industry from unfair competition and ensures that hotels can continue to provide high-quality services without being undercut by cheaper alternatives 2m6s.

The Shift Toward Emotional Connection in Hospitality

• The key to success in the hospitality industry today is to emotionally connect with customers, creating a sense of community and connection that goes beyond just providing good food, beautiful design, and good service, which is a significant shift from the more transactional approach of the past 2m6s.
• The goal is to create a unique experience for guests, rather than just providing a commodity, and to deliver something that cannot be found elsewhere, by not just providing "white boxes" that can be gotten anywhere 10s.

Economic and Political Challenges in the Hotel Industry

• President Trump's tariffs have led to higher operating costs for hotels, and a federal trade court has ruled against the new 10% global tariffs, which has affected the hotel business, particularly with regards to staffing shortages and high turnover 42s.
• The hotel business is facing challenges such as staffing shortages, high turnover, and a decline in international visitors due to the administration's immigration enforcement, making it essential to maintain high standards and flawless service to retain good workers and keep costs down 1m6s.

Post-COVID Challenges and Staff Culture

• The hospitality industry has been significantly impacted by COVID, as people prefer to work from home, which is not possible in hospitality, and it has become essential to create a healthy staff culture where people feel respected, empowered, and proud of their work environment 2m6s.
• To address the challenges, it is necessary to think outside the box and find unique solutions, such as hiring people from different backgrounds, like Gabby, a former magazine editor, who is now the head of global membership, and Demetri, a maître d at the Tower Bar, who brings an old-school approach to hospitality 3m30s.

Innovative Staffing and Leadership in Hospitality

• To address the challenges, it is necessary to think outside the box and find unique solutions, such as hiring people from different backgrounds, like Gabby, a former magazine editor, who is now the head of global membership, and Demetri, a maître d at the Tower Bar, who brings an old-school approach to hospitality 3m30s.
• Demetri is the maître d at the Tower Bar, and he is known for his old-school hospitality and love for his job, while Gabby is the head of global membership, responsible for curating the membership and ensuring that the community is well-rounded 4m40s.

The Importance of Unique Hospitality Experiences

• The goal is to create a unique and exciting experience for guests, and to achieve this, it is essential to have a deep understanding of hospitality, which is not just about providing a service, but about creating an atmosphere and emotional tone, as demonstrated by great hospitality people like Chip Conley 5m40s.
• The business is focused on maintaining high standards and providing a unique experience, and it is lucky to have two unique hotels, the Sunset Tower and 850, which do not have direct competitors, allowing them to stand out in the market 6m50s.

The Distinctiveness of the Sunset Tower

• The Sunset Tower is a singular establishment, offering an old Hollywood experience that is chic and not a rip-off, making it the only option for those seeking this specific experience 10s.
• The London hotel in LA is for sale, but it would be impossible to make it special or give it a soul, which is why it's not considered a worthwhile investment 2m6s.

The Value of Soul and Character in Hospitality Spaces

• The importance of creating a space with a soul is emphasized, as some hotels, like the little one in Venice, may not be fancy but have a unique character that makes them wonderful 4m42s.
• Longevity in the hospitality business is harder to achieve than relevance, and the goal is to build places that have weight and are timeless, rather than just being trendy 8m15s.

The Balance Between Trendiness and Timelessness

• Trendy spaces prioritize excitement, while enduring spaces like the discussed establishments optimize for emotional attachment, influencing decisions on growth, design, membership, and publicity 10m30s.

Favorite Hotels and Their Unique Qualities

• Deetjen's Big Sur Inn is a favorite hotel, praised for its magical atmosphere and the fact that it has respected and enhanced its soul, rather than ruining it 14m20s.
• Another notable hotel is the one in Garzón, Uruguay, owned by chef Francis Mallmann, which offers a unique experience with each room having its own personality and the chef cooking over an open flame 16m40s.

The Emotional and Cultural Impact of Hospitality Spaces

• The concept of hotels and private clubs is centered around creating feelings and moments, which can be challenging to achieve, as seen in establishments like Deitch's, which has a unique atmosphere and smell, 10s
• Private clubs are not necessarily elitist, but rather a community-driven space where people can come together and have a sense of quietude, with the owner's grandfather having a similar space called the dugout where he would play pinochle and socialize with friends, 42s
• The idea of private clubs is to provide a space for people to escape and be themselves, with the owner striving to create a community-oriented environment, and the appreciation for this concept is shared by others who see the value in having a space for quietude and socialization, 2m6s