The group of investors bought Soho House on Monday, August 18th for $2.7 billion.
As part of the transaction, the New York-based MCR Hotel will acquire shares in Soho House that were traded. Soho House & Co. Nick Jones, founder of the club and executive chairman Ron Burkle, along with his investment company, will maintain the club’s majority control.
Since its release in 2021, Soho House, a high-class private member club frequented by individuals adjacent to A-listers, musicians, artists and other celebrities, has experienced a sharp decline in stock values. According to Reuters, the company is struggling to make profits despite its membership and revenue growth.
Soho House shareholders will win $9 per share, and actor and investor Ashton Kutcher will join Soho’s board of directors following the deal.
Here’s what you need to know about trading:
What are investors saying about this transaction?
In a statement, Soho House’s CEO Andrew Carnie said, “By returning to personal ownership, we can build on this momentum with the support of world-class hospitality and investment partners.”
Susannah Streeter, head of funding and markets at Hargreaves Lansdown in London, told Reuters: “The rapid expansion in recent years has sparked concerns that its “exclusive” label has faded.
When was Soho House established?
Soho House was founded in 1995 by restaurateur Nick Jones in London as a gathering place for creative individuals. The club has 46 Soho Houses in Europe, North America and Asia.
Contribution: Reuters
