Soho House & Co, the London-founded private members' club, is poised to return to private ownership in a $1.8 billion (£1.3 billion) deal led by New York-based MCR Hotels, according to the Wall Street Journal.
The buyout, offering shareholders £6.64 ($9) per share, aims to revitalise the brand after a challenging four years on the New York Stock Exchange.
With membership growth and a strong Q2 performance, the deal raises questions about whether Soho House London can reclaim its status as a beacon of exclusivity and cultural allure.
Buyout Signals Strategic Shift
The deal, backed by Apollo Global Management with over £590 million ($800 million) in equity and debt financing, marks a pivotal moment for Soho House.
Founded in 1995 by Nick Jones, the club has grown from a single Soho location to 45 global venues, attracting celebrities like Kate Moss and the Duke and Duchess of Sussex.
However, its 2021 IPO at £10.34 ($14) per share was followed by a share price plummet, with markets undervaluing the brand.
Ron Burkle, the billionaire chairman, has long advocated for privatisation, arguing, 'The inherent value of the company is not reflected in its current share price,' as reported by The Telegraph on 19 December 2024.
The buyout, at an 83% premium over the recent closing price, aims to free Soho House from public market scrutiny, allowing strategic flexibility to enhance its exclusive community model.
Financial Recovery Fuels Optimism
Soho House's recent financials suggest a robust foundation for its brand promise. In Q2 2025, the company reported total revenues of £245.8 million ($329.9 million), an 8.9% increase year-on-year, driven by membership revenues of £88.3 million ($118.6 million), up 16%, according to The Caterer on 8 August 2025.
A net profit of £18.5 million ($24.9 million) marked a turnaround from a loss in Q2 2024. The company's membership model remains strong, with a 91% retention rate and 267,494 members globally by September 2025, as noted in London Daily on 13 August 2025.
CEO Andrew Carnie emphasised, an increased third quarter results that reflect the strength of their membership model, highlighting operational excellence.
However, challenges persist, with some members reporting booking difficulties at New York venues, prompting plans to expand into new cities rather than overcrowding existing clubs.
Brand Promise and Future Prospects
The buyout has sparked debate about Soho House's ability to maintain its exclusive aura while scaling.
X posts reflect mixed sentiment: @skift noted, 'MCR Hotels is leading a group to take Soho House private in a $1.8 billion deal,' while @wallstengine added, 'Deal ends Dan Loeb's Third Point campaign for higher offers.'
Activist investor Dan Loeb, holding a 9.9% stake, had criticised the deal as a 'sweetheart deal' for Burkle, per Yahoo Finance on 29 January 2025, urging a fairer sales process. Despite this, the privatisation could allow Soho House to innovate, focusing on experiential luxury like high-end dining and wellness services.
With renewed financial freedom, the club can invest in curated experiences and new locations, ensuring its venues remain cultural hubs for creatives and professionals.
The brand faces competition from rivals like Zero Bond in Manhattan, but its global expansion and loyal membership base position it to strengthen its identity. As Soho House navigates this transition, its ability to balance exclusivity with growth will determine whether it can shine anew.
Originally published on IBTimes UK
