PENTHOUSE LICENSING/Clubs & Venues (cont’d)
PENTHOUSE Clubs are the premier gentlemen’s clubs in North America and worldwide. Located in some of the most exciting cities — New York, Paris, San Francisco and Moscow — each club is unique, though unmistakably PENTHOUSE. Clubs are expected to receive over 1 million visitors this year.
The Clubs have won many industry awards including Chain of the Year, International Club of the Year and GM of the Year 2015. Although the majority of the existing Penthouse Clubs are in the US and new clubs are opening this year in Pompano Beach and Chicago, there is extensive development outside the US. To the very successful Moscow location, we have added Paris, Kharkov, Auckland and Perth; and we have deals in place to open Penthouse Clubs in Nicosia, Cyprus, and Macau, China. As of today, we anticipate opening 3-5 more international venues in 2016.
While Penthouse Clubs are the best known opportunity, they are not the only Penthouse- branded hospitality venues. Following are brief descriptions of the venues:
- A Penthouse Club is a gentlemen’s club featuring an upscale ambiance and female entertainment. The degree of nudity depends on local rules. The audience is mainly upscale males, 30+ years old. The principal focus of a Penthouse Club is hospitality, not sex. This distinction is particularly important in places where nudity is not allowed (such as China) or where prostitution is legal or accepted. In Shanghai, for example, we could comfortably do an upscale KTV as a Penthouse Club since the audience is primarily male and the entertainment is female. A Penthouse Club is a place to go, either alone or with friends, relax, be pampered, have a great meal (available in many locations) and spend an evening. This is in contrast to a business that caters to an audience wanting sex, where they go for an hour or less. The reason Penthouse Clubs are so profitable is that there are so many profit sources that a normal bar or restaurant does not have. In addition to food and beverage, profit centers can include: door charges, membership sales private room sales, champagne room sales, house money commissions, dance fees, house fees, merchandise sales and sponsorship revenues.
- A Key Club is a mid-level adult nightclub where the market, facility size, level of available capital and/or applicable regulations do not warrant or are inconsistent with The Penthouse Club. In other words, Key Clubs can go almost anywhere a Penthouse Club cannot, and may be either an alcohol or no-alcohol club.
- A Penthouse Lounge is an upscale restaurant/bar/dance club that attracts an upscale audience of both men and women. There is no “adult entertainment” as there is at a Penthouse Club, but there is music along with edgy and provocative entertainment. While in a Penthouse Club, the male guests interact with female entertainers, in a Penthouse Lounge the guests interact principally with each other. The design and ambiance is sensual, including private dining booths, specifically selected music, a VIP area and specialized lighting.The Penthouse Lounge attracts women and business audiences that The Penthouse Club can’t, proving that the brand appeal is span class="licenseType" even with women and businesses. The specific activity within either the Club or Lounge is what distinguishes the audience for each venue. Like the Club, great food is an important part of creating an upscale environment that attracts business not only late at night on weekends, but starting early and going into the late hours every day.
- A Penthouse Pub is a casual yet uniquely “Penthouse” bar and restaurant featuring top sporting events, live and recorded music, and the only healthy bar food menu. Appealing to a wide audience, and appropriate for locations ranging from high-traffic tourist destinations to small markets and college towns, the Penthouse Pub is designed with a classic “pub” style and feel to make everyone feel comfortable and welcome. Included as integral elements to the Penthouse Pub environment are Penthouse merchandise and apparel, Penthouse photo booths and Penthouse fashion shows, and more.
- A Penthouse Key Suite is a special branded hotel room featuring design elements intended to promote an exciting, sensual and sexual experience in a uniquely designed room. The uniqueness of this approach is that an existing hotel can license any number of rooms to take advantage of an internationally known brand name without having to remodel an entire property or pay fees for an entire property.
- A Penthouse Beach Club is a sensual pool or beach area intended for a mixed audience of adults only. A PHBC can be a stand-alone property or created within a larger hotel/resort property as an up sell to the main pool or beach area. A PHBC ideally can be associated with a Penthouse Lounge which then attracts an audience and generates revenue day and night.
- A Penthouse Hotel/Resort is a complete branded property. Unlike Penthouse Key Suites that can be entirely appropriate in almost any hotel (including downtown or business-oriented properties), a Penthouse Hotel/Resort is principally a leisure destination for couples.