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Soho House, the exclusive private members' club and hospitality brand, is set to go private in a transaction valued at roughly $2.7 billion. The deal, led by New York-based MCR Hotels, will bring the company off public markets less than three years after its 2021 New York Stock Exchange debut.
Under the agreement, shareholders will receive $9 per share, representing a nearly 18% premium over Soho's most recent closing price. Following the announcement, the stock climbed more than 15% in intraday trading, reaching approximately $8.80.
As part of the shake-up, actor and tech investor Ashton Kutcher will join the board, while seasoned hospitality executive Neil Thomson has been appointed chief financial officer, succeeding Thomas Allen.
Despite its global footprint and rising membership numbers, Soho House has struggled to consistently deliver profits. Analysts say rapid expansion diluted some of the brand's exclusivity, while broader pressures on consumer discretionary spending have also weighed on earnings.
"Celebrity involvement adds buzz, but Soho House will need more than star power to secure its future," noted Susannah Streeter, head of money and markets at Hargreaves Lansdown. She pointed to the company's heavy reliance on in-house revenue streams such as dining and entertainment, both of which are vulnerable to shifting economic conditions.
Founded in 1995 by Nick Jones above his London restaurant Café Boheme, Soho House has grown into a worldwide network of clubs, hotels, and creative spaces spanning Europe, North America, and Asia. The privatization plan comes after months of speculation about its financial trajectory.
Hedge fund manager Daniel Loeb, whose firm Third Point owns close to 10% of Soho, welcomed the move. "As both a shareholder and a member, I'm pleased with this transaction and confident the company is in capable hands," Loeb said.
Under the new structure, MCR Hotels will take over the publicly traded shares, while founder Nick Jones, along with executive chairman Ron Burkle and his investment firm Yucaipa, will retain majority control. Financing is being supported by Apollo Global Management, which is contributing around $850 million through a hybrid mix of debt and equity.
