Because they aren’t really a private club. They are a hotel that use the fiction of a private club to try and insulate them from the effects of Civil Code Section 51.
Even if you are a so-called private club, but you do things that involve business-like activities with the general public, you won’t be allowed to hide from the Unruh Act.
So, contrast the following:
You and a couple of your friends want to be nudists. So you get together with 20 or 30 other like-minded people, and you create a “private club.” You collect dues, and use that money to obtain a nice oceanside property. Anyone who is a member gets to come use that property. Because you dislike your Aunt Zelda, who is a sneering patronizer of your small pee pee, you pass a rule for your club that no single women over the age of 35 are allowed to be members of your club. You do not advertise your club, there are nice “KEEP OUT” signs at the gate, and the membership stays nice and small and select. The Unruh Act does not apply to you, despite every effort of the Evil Aunt Zelda to get you to open up your gates to her (must have been fun shooting down Mr. Link, Esq. despite his suspicious twirling move to mezmerize the judge at the hearing on your demurrer).
You and a couple of your friends want to be nudists. So you get together with 20 or 30 other like-minded people, and you create a “private club.” You collect dues and use that money to obtain a nice oceanside property. Anyone who is a member gets to come use that property. Because you dislike your Aunt Zelda, who is a sneering patronizer of your small pee pee, you pass a rule for your club that no single women over the age of 35 are allowed to be members. You find that lots of other people you know want to join when they hear about your club, so you start to advertise your beautiful seaside property, in the hopes that you can fill the place for cash during those slow months when the fog hugs the coast and being nude on the beach is something only the seals should try. Each person who wants to stay at your “club” has to pay a membership fee, which entitles them to a one-time stay at the club. While there, they can buy hats, t-shirts (oh the irony!) and license plate holders with your club’s name on them. There are some nifty post cards, too. There is a cash bar, because everyone knows that drunk nudies are more fun; the bar is free for regular members, but the one-time members need to pay for their drinks.
You are NOT a private club, despite your best efforts to rig this to avoid the effects of Civil Code Section 51. Your Evil Aunt Zelda, and her brash, young lawyer, Mr. Link, Esq., pry open the gates and have you slapped with civil penalties for having violated the law. Upon seeing you at the club the first day she’s allowed in under the court order, she once again quips that you must have just gotten done with a morning dip in the ocean, though she knows you haven’t been near anything like cold water. You fume, but what can you do??? :smack:
You do, I hope, see the difference.