Members’ club chain Soho House will go private in a US$2.7 billion deal, after its purchase by a consortium led by MCR Hotels.
MCR Hotels and its CEO Tyler Morse will buy around 15% of Soho House’s shares for US$9.00 each. Actor and investor Ashton Kutcher will also join the company’s board, while Tasty Restaurant Group’s Neil Thomson will take over as chief financial officer.
“This transaction reflects the strong confidence our existing and incoming shareholders have in the future of Soho House & Co., and the transformation we’ve led since becoming a public company. Since our IPO in 2021, we’ve focused on building a stronger, more resilient business,” according to Soho House CEO Andrew Carnie.
“Returning to private ownership enables us to build on this momentum, with the support of world class hospitality and investment partners.”
Soho House’s remaining shares will continue to be held by retail investor Ronald Burkle, who has a 40% stake, as well as Soho House founder Nick Jones, Caprice Holdings chair Richard Caring, and Goldman Sachs.
It operates 46 clubs worldwide, with the majority in the Americas and the United Kingdom, and said it had more than 270,000 members worldwide at the end of last quarter.
While the company’s shares have risen by 18.65% across 2025 to date, they have traded below US$9.00 since 2022. Soho House was valued at $2.8 billion after its initial public offering in 2021, and its current $2.7 billion valuation includes $700 billion in debt.
Soho House has been seeking to recover from a string of net losses, despite growing membership numbers and revenue. While it reported net income of US$24.89 million last quarter, it posted losses in the first, second, and fourth quarters of 2024, and has not turned a full-year profit since its IPO.
The company first received MCR Hotels’ offer in December 2024. MCR Hotels is the United States’ third-largest hotel operator by room count, with 150 hotel properties.
Soho House’s (NYSE: SHCO) share price closed at US$8.78, up from its previous close at $7.64. Its market capitalisation is $1.71 billion.
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