Soho House's $1.8bn takeover deal: Can it regain its exclusivity?

Soho House, a private members' club, is struggling to regain its exclusive reputation after a rapid expansion and criticism of overcrowding. The club, which has over 268,000 members in 46 locations worldwide, has been hit by a troubled stock market flotation and complaints of poor service. To address these issues, Soho House has struck a $1.8bn takeover deal with a US hotel operator, aiming to restore exclusivity to its brand. However, success is not guaranteed.

Soho House, a private members' club that has been struggling to regain its exclusive reputation after rapid expansion and criticism of overcrowding, has agreed to a $2.7 billion takeover deal. The deal, led by hotel operator MCR and CEO Tyler Morse, aims to restore the brand's exclusivity and address the challenges it has faced since its troubled stock market flotation in 2021 [1].

The club, which has over 268,000 members in 46 locations worldwide, has been hit by complaints of poor service and a volatile stock market. The deal will see shareholders receive $9 per share, a 17.8% premium over the stock's closing price on Friday. The transaction is expected to value the company’s equity at roughly $1.8 billion, excluding debt [2].

MCR, known for acquiring iconic hotels like NYC's High Line and London's BT Tower, will acquire the outstanding shares of Soho House not held by certain significant shareholders. Tyler Morse will join the Soho House board, while Ron Burkle, Soho’s executive chairman, and the existing shareholder Yucaipa Companies LLC will retain majority control [3].

The deal also includes a new equity injection led by technology investor Ashton Kutcher, who will join the company’s Board of Directors following the transaction's completion. This strategic move aims to combine MCR's operational expertise with one of the most distinctive brands in hospitality, safeguarding the member experience and driving sustainable international growth [3].

However, the success of this deal is not guaranteed. Soho House has struggled to balance expansion with maintaining exclusivity, and the wider consumer spending pullback in the hospitality industry has added pressure as the club relies on in-house purchases such as meals and entertainment [2]. While the stock has rallied hard over the past year, the question remains whether going private will help Soho House refocus on its original creative-class DNA or simply escape the market's judgment.

References:
[1] https://finance.yahoo.com/news/hollywood-cash-meets-hotel-empire-213438243.html
[2] https://www.reuters.com/business/soho-house-go-private-27-billion-deal-actor-ashton-kutcher-join-board-2025-08-18/
[3] https://www.capitalbrief.com/briefing/soho-house-agrees-to-us27b-take-private-deal-cd8ac4bb-9b8c-4796-9c95-4e9a6f5a1bbd/