Annabel’s profit trebles as Mayfair club defies hospitality gloom

One of London’s best-known private members clubs has shrugged off wider hospitality gloom after posting a near-tripling of profit.

Mayfair-based Annabel’s, which has been based on Berkeley Square since the 1960s, toasted a pre-tax profit of £12.4m in the year to January 2025, a rise of 184 per cent on the previous year.

Revenue over the period rose by 6.3 per cent to £55.6m, which the club put down to a “strong” improvement in membership income.

“Although consumer confidence was dented by various conflicts and uncertainty following a new government, the company’s proposition proved compelling for our members which contributed to another impressive year,” Annabel’s directors said.

But the company warned that “increases in living wages put pressure on achieving like for like labour margins without compromising customer service levels.”

Despite the profit rise, the club, which is owned by serial hospitality entrepreneur Richard Caring, also suffered a rise in debt, with total borrowings growing from £216m to £229m over the course of the year.

Last year the company extended its existing debt facility to end April 2026.

Profits defy reputation as ‘House of Naff’

The club’s impressive takings defy those who claim the venue has lost its soul, with some dubbing it the “House of Naff”.

Annabel’s was founded by Mark Birley in 1963 beneath the Clermont, a private gambling club.

One of London’s first nightclubs, the venue found popularity with British aristocracy and high-fliers during its heyday in the 1960s and 1970s. 

Frank Sinatra and Elizabeth Taylor were among the club’s regulars, and Tina Turner, Ella Fitzgerald and Diana Ross performed at Annabel’s before it became better known for its dance floor. 

The club was revived by Birley’s son and daughter at the start of the century, before it was sold to Caring in 2007 for £95m.

Annabel’s is known for its maximalist decor designed by Martin Brudnizki, the design studio responsible for the flowery interior of restaurant chain The Ivy.

The club’s members’ bar features original paintings by Pablo Picasso, Marc Chagall and Amadeo Modigliani.

Earlier this month, Mick Jagger’s fiancee, Melanie Hamrick, claimed she was attacked outside the venue. 

Labour figures call for hospitality tax support

Annabel’s soaring profit defies the wider gloom surrounding the UK’s hospitality industry. 

Former deputy prime minister Angela Rayner last week admitted that the hike to minimum wage put pressure on hospitality firms.

The former housing secretary told a night-time economy conference: “I talked about the challenges of business rates, the challenges of VAT, the challenges, yes, of the minimum wage going up, and the living wage and the cost of energy.”

The government recently announced a tax relief package for pubs, but Rayner called for Labour to go further.

“We’ve got to start looking at the intersectionality of all these challenges and start relieving some of them,” she said.

Andy Burnham, Labour Mayor of Greater Manchester, also called for Labour’s tax regime to recognise the “value added” to the economy by nightlife businesses.