Soho House Goes Private in $2.7B Deal
Soho House is leaving the stock market behind in a $2.7 billion deal led by MCR Hotels, marking the end of a rocky public run for the upscale members’ club. Shareholders will get $9 per share, which is a decent premium over recent prices but still a far cry from its $14 IPO in 2021. The deal includes backing from Apollo Global Management and a group of investors that notably includes Ashton Kutcher, who’s joining the board. Founder Nick Jones, billionaire chairman Ron Burkle, and other insiders will keep control of the business.
The move follows years of pressure from investors like hedge fund boss Dan Loeb, whose firm Third Point owns nearly 10% of Soho House. He had been pushing for what he called a “fair” sale process, even describing the $9 offer as a “sweetheart” deal at one point. Despite criticism over the company's accounting and rapid expansion, recent profits and a shift toward quality over quantity helped set the stage for the buyout.
CEO Andrew Carnie told members that going private would “build on this momentum” and improve the experience globally. Soho House, which began in London in 1995, now has 46 clubs worldwide. While some investors are still wary, Carnie believes this new chapter, with big-name backers and leadership changes like a new CFO, will restore the club's signature sense of exclusivity and strengthen its future.
