Soho House, the private members’ club chain, is set to be acquired for $2.7 billion (£2 billion) by a consortium that includes actor and investor Ashton Kutcher.
Founded in London in 1995, Soho House now operates 46 locations across Europe, North America, and Asia, alongside a portfolio of upscale hospitality ventures.
The club is renowned as a favored destination for A-list celebrities, with one of its London venues reportedly hosting the first date between Prince Harry and Meghan Markle.
However, since its listing on the New York Stock Exchange in 2021, the company’s share value has declined, grappling with profitability challenges and perceptions of diminished exclusivity.
The agreed-upon offer price of $9 per share represents an 18% premium over Friday’s closing price, yet remains below the peak of $14.21 per share attained in August 2021.
MCR Hotels, the third-largest hotel group in the U.S., is leading the consortium, boasting prominent properties such as the TWA Hotel at JFK Airport in New York and the BT Tower in London. Private equity firm Apollo facilitated the transaction to return Soho House to private ownership.
Existing Soho House shareholders, including founder Nick Jones and Ivy Collection restaurant chain head Richard Caring, will retain their stakes in the company.
Ashton Kutcher and MCR’s CEO, Tyler Morse, are slated to join the board of directors.
Mr. Morse expressed MCR’s enthusiasm in joining the “Soho House journey”.
“We have long admired Soho House for bringing together cultures from around the world into a global network of 46 houses, and we look forward to the continued growth of that fabric, starting with four new houses opening soon.”
The inaugural Soho House, established by Mr. Jones, was situated above his restaurant, Cafe Boheme, on London’s Greek Street.
It presents itself as a members’ club designed for “like-minded creative thinkers to meet, relax, have fun and grow”.
Reported members include Kate Moss, Kendall Jenner, Ellie Goulding, and the Duke and Duchess of Sussex.
Its venues encompass Shoreditch House, Soho Farmhouse, Soho House Bangkok, and Miami Poolhouse.
In addition to the Soho House clubs, the group’s other businesses include eight Soho Works office buildings, and Scorpios Beach Clubs in Mykonos and Bodrum.
However, this expansion had resulted in accusations that Soho House was no longer as exclusive as members would expect given its membership fee, which can run into several thousand pounds.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted that while Soho House “can now boast a Hollywood star as a director”, the chain would need “a bit more than celebrity stardust to cement its long-term future”.
“MCR Hotels, Ashton Kutcher and the other investors will have their work cut out to put Soho House back onto a more stable footing given concerns about the viability of its business model,” she said.
“Its rapid expansion in recent years has sparked concerns that its ‘exclusive’ label was wearing thin.”
She said it was a “challenging time” for the restaurant business, with “aspirational shoppers tightening their stylish belts”.
Soho House chief executive Andrew Carnie stated that the return to private ownership “reflects the strong confidence our existing and incoming shareholders have in the future of Soho House”.
Since the company floated on the New York Stock Exchange he said the company had focused on “building a stronger, more resilient business”.
“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.”