The exclusive members’ club chain, Soho House, has announced its decision to go private in a monumental $2.7 billion (£2 billion) deal. This move comes after a challenging four years on the New York Stock Exchange. Esteemed investors, led by New York-based MCR Hotels, will spearhead this deal, marking a new chapter for the luxury hospitality brand.
Ashton Kutcher Joins Soho House Board
Actor and tech investor Ashton Kutcher, long rumored to be a loyal member of Soho House, is set to join its board of directors as part of the deal. Meanwhile, MCR Hotels’ CEO, Tyler Morse, will assume the role of vice-chair.
Founded in 1995 by restaurateur Nick Jones with its first location in London, Soho House has since become a global icon of luxury membership clubs, with 48 locations either open or planned worldwide. These include high-profile hotspots in cities like Paris, Istanbul, Bangkok, and New York. The exclusive clubs have attracted celebrities such as Kate Moss, Kendall Jenner, and Ellie Goulding, fostering an aura of high-status appeal.
Details of the $2.7bn Deal
The private buyout values Soho House shares at $9 each—an impressive 83% premium on the stock price before investor interests became public in December 2022. However, the valuation remains below its post-IPO peak of $2.8 billion back in 2021. The company’s stock has recently struggled, hovering below $9 since May 2022, and dropping significantly from its August 2021 high of $14.
This transaction also includes $700 million in company debt, placing the total enterprise value at $2.7 billion. Prominent current investors include US retail billionaire Ron Burkle, who owns 40% of the firm, Richard Caring (known for The Ivy restaurant chain) with 21%, and Goldman Sachs, which retains an 8% stake. All existing shareholders, including Nick Jones, will maintain their equity through this transformative deal.
MCR Hotels: The Key Investor
As the third-largest hotel operator in the US, MCR Hotels manages over 150 properties, including iconic spots such as New York’s High Line Hotel and the TWA Hotel at JFK Airport. Notably, MCR is currently converting London’s historic BT Tower into a luxury hotel, further solidifying its foothold in the global luxury hospitality sector. This expertise makes MCR an ideal partner as Soho House pivots to private ownership.
Balancing Growth with Exclusivity
Soho House’s global expansion hasn’t come without its challenges. Balancing the chain’s rapid growth with the exclusivity demanded by its 270,000 members—who pay as much as £2,920 annually for top-tier access—has been a delicate line to walk. Despite these difficulties, the company has doubled its revenue over the past three years and achieved net profits in its last three quarters, signaling a strong financial turnaround.
CEO Andrew Carnie expressed optimism about this new phase in Soho House’s journey, stating, “Returning to private ownership enables us to build on this momentum, with the support of world-class hospitality and investment partners. I’m incredibly proud of what our teams have accomplished and am excited about our future as we continue to be guided by our members.”
From Public to Private: What’s Next for Soho House?
Moving back to private ownership allows Soho House to focus on long-term strategic goals without the pressure of quarterly public market expectations. The company plans to continue its mission of curating unique, world-class experiences for its members, while scaling its global footprint intelligently.
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With a history of resilience and growth, Soho House continues to captivate its members and investors alike. The $2.7 billion deal is proof that luxury experiences remain a sought-after asset, even amid challenging economic conditions.