Soho House Returns to Private Ownership in $2.7bn Takeover

Soho House, the members only club known for its exclusivity and celebrity appeal, is going private again after a difficult four-year period on the stock market. In a $2.7bn deal led by U.S. operator MCR Hotels, shareholders will receive $9 per share in cash an 18% increase on the company’s recent trading price ($7.6). The company floated in New York in 2021 at $14 per share, but its value soon dropped amid concerns about heavy losses and whether rapid expansion was undermining the brand’s exclusivity. By the time of the deal announcement, shares had fallen nearly 50% at $7.6 per share. As Reuters notes, the buyout provides an exit for weary investors but also underscores the difficulty of translating a lifestyle brand into a publicly listed growth story.

The transaction is being financed with backing from Apollo Global Management, while founder Nick Jones and key insiders including Goldman Sachs and Ron Burkle’s Yucaipa Holdings are rolling over their holdings. MCR Hotels, the third-largest U.S. hotel owner, known for redevelopments like New York’s TWA Hotel and London’s BT Tower, will take a central role in steering operations. Notably, MCR’s chief executive Tyler Morse will join the board as vice chairman, alongside new additions such as Ashton Kutcher, the actor turned investor and long-time Soho member.

For investors, the deal is bittersweet. The $9 per share price represents a generous premium compared to recent trading levels but still falls short of the $14 public price. Long-term shareholders are effectively locking in a loss, but in exchange for certainty and cash in hand. For activist investors like Daniel Loeb, who had pushed for a sale, this is a face-saving outcome: an imperfect exit, but better than continued decline.

The bigger question is what happens to members, the lifeblood of the brand. Over the past decade, Soho House has grown from a handful of clubs in London to more than 40 sites worldwide. But that growth has come with problems: complaints of overcrowding, slipping service standards, and a dilution of the “exclusivity” that once made membership desirable. Going private could allow management to slow expansion and refocus on quality, without the pressure of quarterly earnings. MCR’s hospitality expertise suggests a shift towards operational discipline; fewer Houses opened too quickly, more investment in service and consistency. For existing members, that could mean a more curated experience; for prospective ones, it may become harder to get in if the brand chooses to restore scarcity as part of its mystique.

Soho House’s privatisation is expected to close by the end of 2025, pending regulatory approvals. For shareholders, the chapter of a volatile listed stock ends with a modest pay-out. For members, the deal raises hopes that the brand can rebalance, protecting its credibility while ensuring financial stability. The real challenge will be whether Soho House can deliver on its promise: a community for creatives that feels intimate and special, even as it remains a global brand. If MCR can strike that balance, the return to privacy could be the start of a new era, one where exclusivity feels authentic again, rather than stretched thin across continents.