Soho House, the exclusive members’ club chain that has become synonymous with celebrity culture and creative-class networking, is to return to private ownership in a $2.7bn (£2bn) deal, just four years after its high-profile listing on the New York Stock Exchange.
The move comes after a volatile spell as a public company, during which its share price halved, investors questioned its accounting methods, and the business struggled to balance rapid global expansion with the exclusivity demanded by its more than 213,000 members worldwide.
The deal will see MCR Hotels, the third-largest hotel operator in the United States, lead a group of new equity investors. Actor and tech investor Ashton Kutcher, long rumoured to be a member, will join the board, while MCR’s chief executive Tyler Morse will serve as vice-chair.
Existing major backers will remain in place, including Ron Burkle, the US retail billionaire who holds a 40% stake, restaurateur Richard Caring with 21%, and Goldman Sachs, which has 8%. Founder Nick Jones (pictured), who opened the first Soho House in London’s Greek Street in 1995, retains his 5%.
New investors will buy shares at $9 apiece, an 83% premium on the price before takeover interest surfaced late last year. However, that still values Soho House below the $2.8bn peak it briefly reached in 2021. The $2.7bn enterprise value includes about $700m of debt.
When Soho House listed in 2021 under the name Membership Collective Group, it was pitched as a lifestyle stock for the Instagram age: a global network of clubs, hotels and restaurants with celebrity cachet and aspirational branding.
At its height, the company boasted revenues doubling in three years, rapid openings from Mumbai to Los Angeles, and waiting lists thousands strong. But the gloss faded quickly.
Shares slid from above $14 in August 2021 to $7.64 by last week, reflecting investor unease with its hefty losses — totalling $739m across its four years on the market — and the inherent contradiction of chasing rapid global growth while selling exclusivity.
Criticism also came from activist investors. Hedge fund Third Point, run by billionaire Dan Loeb, had urged Soho House to court fresh investors and even consider a competitive bidding process. Short-sellers such as GlassHouse Research raised questions about the company’s accounting, though these were rejected.
Chief executive Andrew Carnie said returning to private ownership would give Soho House the breathing space to pursue its expansion strategy without the quarterly scrutiny of Wall Street.
“Returning to private ownership enables us to build on this momentum, with the support of world-class hospitality and investment partners,” he said. “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 and grounded in the spirit that makes Soho House so special.”
Carnie has sought to make the company leaner in recent years. Management argues that operational efficiencies have improved profitability, with Soho House reporting three consecutive quarters of net profit.
For MCR Hotels, best known for assets such as New York’s TWA Hotel at JFK and the High Line Hotel, the deal provides a gateway into the lucrative high-end lifestyle sector. The group is also investing heavily in the UK, having acquired the BT Tower in London last year for £275m with plans to convert it into a hotel.
Ashton Kutcher’s appointment to the board reflects Soho House’s desire to blend cultural cachet with strategic investment nous. Kutcher has a track record in backing technology startups, from Uber to Airbnb, and is likely to bring both media attention and Silicon Valley credibility.
For a business that has long relied on its star-studded clientele — from Kate Moss and Kendall Jenner to the Duke and Duchess of Sussex, who had their first date at the Dean Street house — his arrival may also help bolster Soho House’s brand positioning as both aspirational and innovative.
The club now has 48 locations open or in development worldwide, with 10 in London alone. Annual fees range from £1,000 to £2,920, depending on access levels. But expansion at this pace has posed challenges: long-time members complain about overcrowding and a dilution of exclusivity, while rising fees risk pricing out younger creatives.
The deal is unlikely to alter the member experience in the short term. However, the backing of MCR Hotels could accelerate property development, with new sites expected across Europe, Asia and the US.
For investors, the transaction closes a turbulent chapter in Soho House’s history as a listed company. While the public markets struggled to value its hybrid model of hospitality, lifestyle, and membership, the private equity consortium appears to be betting on its ability to scale profitably away from Wall Street scrutiny.
The question is whether Soho House can retain its aura of exclusivity while expanding further into new cities and markets — or whether its greatest asset, its brand mystique, risks dilution in the pursuit of growth.
Paul Jones
Harvard alumni and former New York Times journalist. Editor of Business Matters for over 15 years, the UKs largest business magazine. I am also head of Capital Business Media’s automotive division working for clients such as Red Bull Racing, Honda, Aston Martin and Infiniti.
