Members of the Hong Kong Golf & Tennis Academy (HKGTA) are threatening legal action and have filed complaints with the Consumer Council watchdog over a planned operational change at their Town Club in Central. Rosewood, the parent company of Carlyle & Co, plans for Carlyle & Co to take over the Town Club's operations. Patrons are concerned about alleged breaches of the Trade Descriptions Ordinance. Rosewood has responded by refining its plan, including retaining the HKGTA identity, implementing a phased transition, and establishing a patrons' committee for communication.
The controversy began after Carlyle & Co, a private members' club, announced it would take over the operation of HKGTA's Town Club. HKGTA members paid up to HK$2.68 million ($342,200) for their memberships, while Carlyle & Co memberships can be as low as HK$50,000. Members are angry that both clubs' members would have reciprocal access to facilities despite the significant difference in membership fees. They also noted that the clubs cater to different clientele, with HKGTA members being primarily professionals like lawyers and bankers, while Carlyle & Co has a younger membership base including key opinion leaders and entrepreneurs.
The initial takeover, scheduled for June 8, was postponed by two months to August 8 following strong opposition from HKGTA members. This delay is seen as a victory for the members, who are pushing for the plan to be scrapped entirely. The HKGTA is part of New World Development, and Rosewood is owned by Chow Tai Fook Enterprises, both controlled by the family of tycoon Henry Cheng Kar-shun.
Separately, the American Club in Hong Kong has faced its own membership disputes. The club decided to redeem individual debentures held by mostly non-voting members who are not Americans, impacting about 200 members. These members had often paid upwards of HK$2 million for debentures, which the club is now redeeming at face value, leading to significant financial losses for those who bought them in the secondary market. The club stated its objective was to streamline membership categories and maintain its non-profit tax status, which requires 50 percent or more of its operating revenues to come from voting members. Affected members have until the end of August to decide whether to leave or rejoin at a cost of HK$1.5 million, with transfer fees potentially deducted.
