Soho House goes private in $2.7B deal after 4 years as public company

Soho House, the exclusive private members’ club operator known for attracting celebrities and creative professionals, is returning to private ownership in a $2.7 billion deal announced Monday, ending its tumultuous four-year stint on the New York Stock Exchange.

MCR Hotels, a New York-based hotel investment firm, is leading the transaction that will pay shareholders $9 per share in cash — an 83% premium over the stock’s closing price prior to a December 2024 announcement that the company had received a potential offer. The stock surged more than 15% following the announcement.proactiveinvestors

High-Profile Backing and Leadership Changes

Actor and tech investor Ashton Kutcher will join Soho House’s board of directors as part of a consortium providing new equity capital. MCR CEO Tyler Morse will become vice chairman, while existing major shareholders including founder Nick Jones, executive chairman Ron Burkle, and investor Richard Caring will retain majority control.mcrhotels

According to MCR’s announcement, Kutcher will be among “strategic investors led by prominent technology investor Ashton Kutcher” contributing new equity and joining the board. Goldman Sachs Alternatives, which has been invested in Soho House since 2021, is also committing additional capital.mcrhotels

Struggles as a Public Company

Soho House went public in July 2021 at $14 per share but struggled to achieve profitability throughout its public tenure. The company’s shares had declined more than 30% from their IPO price before the buyout offer, reflecting concerns about its business model and expansion strategy.fortune

Despite reporting $329.8 million in revenue for the second quarter of 2025 — an 8.9% increase year-over-year — the company has faced criticism from analysts who compared it to WeWork. GlassHouse Research, a short-seller, previously highlighted the company’s inability to turn a profit in its 30-year history and its substantial debt load.hedgefundalpha

Return to Private Ownership

CEO Andrew Carnie described the transaction as reflecting “strong confidence” in the company’s future. “Returning to private ownership enables us to build on this momentum, with the support of world class hospitality and investment partners,” Carnie said in a statement.mcrhotels

MCR’s Morse emphasized the strategic opportunity, stating that the investment “represents a strategic opportunity to combine our operational expertise with one of the most distinctive brands in hospitality”. The company plans to open four new locations in the near future.mcrhotels

The deal, expected to close by year-end pending regulatory approval, will delist Soho House from the NYSE and return the global network of 46 clubs to private hands.proactiveinvestors