Soho House sells for $1.8 billion to return to private ownership
- Soho House has struck a deal to go private again for $1.8 billion.
- Investors led by MCR Hotels will buy the company's shares for $9 each in cash.
- The transition is expected to help Soho House build on its recent growth momentum.
In August 2025, the luxury private members' club operator, Soho House, announced a significant shift in its ownership structure after experiencing challenges on Wall Street since its public debut in 2021. The company, known for providing exclusive spaces for its members, has agreed to a take-private deal with an investor group led by MCR Hotels. This new agreement allows the investors to buy the company's outstanding shares for $9 in cash each. As part of the deal, Soho House’s Executive Chairman Ron Burkle and other major shareholders will maintain their stakes and continue to control the business. The transaction is set to be completed by the end of 2025, contingent upon regulatory approval and additional closing conditions. The company, which operates 46 Soho House locations globally and offers various coworking spaces, beach clubs, and digital platforms, reported substantial growth in its member base, reaching over 270,000 by mid-2025. This marks an increase in revenue, with Soho House generating approximately $329.8 million in the second fiscal quarter alone, reflecting an 8.9% increase year-over-year. However, their stock performance has been disappointing, with shares falling about 30% since going public, trading below the initial price during their public offering of $14 in July 2021. The decision to return to private ownership signifies Soho House's confidence in building on its already established momentum. The leadership believes that shedding the pressures of public market performance will allow them to better focus on growth and operational efficiencies. Shares of Soho House saw a 15% increase following the announcement of the deal, showcasing market optimism around the potential new direction under private ownership. As part of the transaction, Ashton Kutcher, the Hollywood actor and tech investor, will join the company's board, as will Tyler Morse, the CEO of MCR, who will serve as Vice Chairman. This shift in governance aims to leverage MCR’s expertise in the hospitality sector, aligning with Soho House's goals to enhance its brand and expand its reach. By transitioning back into private hands, Soho House aims to fortify its position in the competitive hospitality market while developing further innovations for its members.