Soho House Moves to Go Private Again Amid Stock Market Challenges
After facing difficulties on Wall Street, Soho House, the luxury members club known for its upscale atmosphere, is making a significant move to go private once more. The company has reached an agreement with a group of investors led by MCR, a major player in the hotel industry. MCR will purchase Soho House’s shares for $9 each, allowing key stakeholders, including Executive Chairman Ron Burkle, to retain their stakes and control of the business.
This deal reflects a total enterprise value of around $2.7 billion, including the company’s debt. Soho House expects to finalize the agreement by the end of 2025, pending regulatory approval. If all goes well, the company will cease trading on the New York Stock Exchange.
Following the news, Soho House’s shares experienced a boost, rising over 15% in value.
Joining Soho House’s leadership team after the deal will be actor and tech investor Ashton Kutcher, who will sit on the board alongside Tyler Morse, the CEO of MCR, who will take on the role of Vice Chairman.
Morse expressed that MCR has “long admired” Soho House, stating that their investment is a strategic opportunity to blend their operational skills with a leading brand in the hospitality sector.
Soho House CEO Andrew Carnie highlighted the club’s impressive growth over the years. He believes that returning to private ownership will help the company build on its ongoing success.
Founded in 1995 by Nick Jones with a single club in London, Soho House has expanded globally, now operating 46 locations worldwide along with various coworking spaces and digital platforms. The club positions itself as a “global membership platform,” catering to creative individuals by providing a space for connection and community.
With over 270,000 members as of June, Soho House recently reported an increase in revenue for its second fiscal quarter, earning $329.8 million—a notable 8.9% rise from the previous year. However, despite this growth, its stock has struggled since going public in 2021, having dropped roughly 30% since its initial offering price of $14 a share.
Soho House’s shift back to private ownership marks a significant chapter in its journey, reflecting the challenges faced by many companies in navigating the complexities of the public market while maintaining a distinctive brand identity.
