The exclusive members’ club chain Soho House & Co has announced it will be taken private in a deal valued at approximately $2.7 billion, including debt, after a challenging four-year period on the New York Stock Exchange. The acquisition is being led by New York-based MCR Hotels, with actor and venture capitalist Ashton Kutcher set to join the company’s board of directors.
The agreement will see new equity investors, led by MCR, pay $9 a share for the roughly 15% of Soho House shares that are publicly traded. While the deal implies an enterprise value of $2.7 billion, this figure includes about $700 million of debt, placing the company’s equity value closer to $2 billion. This is a significant decrease from the $2.8 billion valuation it achieved shortly after its initial public offering in 2021. According to a report from The Guardian, the company’s shares have traded below the $9 offer price since May 2022.
Founded in 1995 by Nick Jones with a single location in London’s Soho district, the brand has expanded into a global phenomenon. As of 2024, Soho House operates 42 clubs worldwide, with locations in cities from Los Angeles and Miami to Istanbul and Mumbai. It has cultivated an image of exclusivity, catering to a clientele in the creative industries and attracting numerous celebrities. The Duke and Duchess of Sussex, Harry and Meghan, famously had their first date at the 76 Dean Street house in London.
Despite its cultural cachet and growing footprint, the company has struggled financially since going public. It has accumulated losses of $739 million over the past four years and has never reported an annual profit. This performance attracted scrutiny from activist investors, including Dan Loeb’s Third Point hedge fund, which had pushed for a competitive bidding process.
Key long-term stakeholders will retain their positions in the private entity. This includes founder Nick Jones (5% stake), US retail billionaire Ron Burkle (40%), and Richard Caring, owner of the Ivy restaurant chain (21%). Investment bank Goldman Sachs will also keep its 8% stake. Under the new structure, MCR Hotels’ chief executive, Tyler Morse, will serve as vice-chairman, while Ashton Kutcher, a long-time member, will bring his investment acumen to the board.
MCR Hotels is the third-largest hotel operator in the United States, managing over 150 properties, including New York’s iconic TWA Hotel at JFK Airport and the High Line Hotel. The company is also converting London’s landmark BT Tower into a hotel, signaling its expertise in managing high-profile hospitality assets.
Andrew Carnie, CEO of Soho House & Co, framed the move as a positive step forward. “Returning to private ownership enables us to build on this momentum, with the support of world class hospitality and investment partners,” he said in a statement. Carnie noted that the deal reflects strong confidence from both existing and new shareholders, despite a “backdrop of challenging economic conditions and global uncertainty.”
The transition away from public markets will allow Soho House to pursue its growth strategy without the constant pressure of quarterly earnings reports. The central challenge remains balancing its rapid global expansion with maintaining the sense of exclusivity that its 270,000 members, who pay annual fees up to £2,920, have come to expect.
