MCR Hotels Acquires Soho House in $2.7B Deal, Merging Hospitality Expertise with Membership Club

MCR Hotels, a US-based hotel owner-operator, is taking Soho House private in a $2.7 billion deal, with CEO Tyler Morse joining the board of directors as vice chairman. The deal involves investors led by MCR, Ron Burkle, and Yucaipa Companies, with additional investors including Goldman Sachs Alternatives and Ashton Kutcher. The acquisition reflects the confidence of shareholders in Soho House's future growth despite challenging economic conditions.

MCR Hotels, a leading U.S.-based hotel owner-operator, has announced its intention to acquire Soho House & Co. Inc. in a private deal valued at $2.7 billion. The acquisition, which involves investors led by MCR, Ron Burkle, and Yucaipa Companies, reflects a strategic move to combine operational expertise with one of the most distinctive hospitality brands in the industry.

According to a news release, MCR will pay shareholders $9 per share in cash, representing an 83% premium to the unaffected share price. The acquisition price per share is a 17.8% premium on Soho House’s share price at press time of $7.64 per share [1]. The deal is expected to turn Soho House into a private entity, with MCR Hotels' chairman and CEO Tyler Morse joining the board of directors as vice chairman.

Soho House, known for its unique membership-club model, operates 46 hotels under the Soho House brand, as well as three The Ned hotels and two Scorpios Beach Club properties in Mykonos and Bodrum. The company's extensive portfolio includes properties across various countries, including the United Kingdom, Brazil, Canada, Denmark, France, Germany, Greece, Hong Kong, India, Israel, Italy, Japan, Mexico, The Netherlands, Saint Vincent & The Grenadines, Spain, Sweden, Thailand, Turkey, and the U.S. [1].

The acquisition comes amidst challenging economic conditions, but it reflects the confidence of shareholders in Soho House's future growth. The deal is supported by funds affiliated with global alternative asset manager Apollo, providing a hybrid capital solution to facilitate the acquisition [1].

Morse, who will become vice chairman of Soho House's board, stated, "MCR’s investment in Soho House represents a strategic opportunity to combine our operational expertise with one of the most distinctive brands in hospitality. Our shared goal is to safeguard the member experience, drive sustainable international growth for House members, and protect and expand the cultural and creative foundation that has made Soho House a global industry leader" [1].

In addition to the acquisition, Soho House has appointed Neil Thomson as its new chief financial officer, replacing Thomas Allen. Thomson arrives from his position as CFO at food-and-beverage firm Del Frisco. Actor Ashton Kutcher has also joined the Soho House board of directors [1].

MCR Hotels, which owns more than 150 hotels, including the High Line Hotel and TWA Hotel at John F. Kennedy International Airport in New York City, has been actively expanding its portfolio. In February 2024, MCR acquired the BT Tower in Central London for £275 million ($372.5 million), planning to convert it into a luxury hotel [1].

The acquisition of Soho House by MCR Hotels marks a significant strategic move in the hospitality industry, reflecting the blurring lines between accommodation, tech, distribution, and lifestyle brands. The deal signals a shift from traditional hospitality models to experience-led ecosystems, positioning MCR and Soho House at the intersection of tech, culture, and hospitality [2].

References:
[1] https://www.costar.com/article/2119352365/mcr-hotels-to-buy-soho-house-take-private-in-27-billion-deal
[2] https://www.globenewswire.com/news-release/2025/08/19/3135798/0/en/SHCO-Alert-Monsey-Firm-of-Wohl-Fruchter-Investigating-Fairness-of-the-Proposed-Sale-of-Soho-House-Co-Inc-to-MCR-Hotels.html