Soho House Goes Private in $2.7 Billion Deal, Ashton Kutcher Joins Board

Soho House, a global private members' club brand, is set to return to private ownership in a $2.7 billion deal led by MCR Hotels. The acquisition, which includes Ashton Kutcher joining the board, marks the end of Soho House's four-year stint as a publicly traded company. The deal is supported by financial heavyweights Apollo Global Management and Goldman Sachs Alternatives, alongside existing and new investors. Soho House founder Nick Jones and investor Richard Caring will retain their controlling equity interests.

Soho House, a global private members' club brand, is set to return to private ownership in a $2.7 billion deal led by MCR Hotels. The acquisition, which includes Ashton Kutcher joining the board, marks the end of Soho House's four-year stint as a publicly traded company. The deal is supported by financial heavyweights Apollo Global Management and Goldman Sachs Alternatives, alongside existing and new investors. Soho House founder Nick Jones and investor Richard Caring will retain their controlling equity interests.

According to a news release, MCR will pay shareholders $9 per share in cash, 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. The deal values the London-based firm at $2.7 billion, including debt. Funds affiliated with global alternative asset manager Apollo are supporting the deal with a hybrid capital solution [1].

Soho House has 46 hotels branded under Soho House, as well as three The Ned hotels and two Scorpios Beach Club properties in Mykonos and Bodrum, among its other real estate portfolio interests. The company's hotel portfolio includes properties in 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]

MCR’s chairman and CEO Tyler Morse will become vice chairman of Soho House’s board. “MCR’s investment in Soho House represents a strategic opportunity to combine our operational expertise with one of the most distinctive brands in hospitality,” Morse said in the news release. “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].

Soho House also announced that its new chief financial officer is Neil Thomson, replacing Thomas Allen, effective immediately. Thomson arrives from being CFO at food-and-beverage firm Del Frisco [1].

The acquisition comes after Soho House struggled financially, losing more than 46% of its market value since the company floated its shares. Despite recent growth, the company’s stock has tumbled during its time on the public market. Since Soho House began trading in 2021, its stock has fallen roughly 30%, trading at under $9 a share on Monday. That’s down from $14 a share that the company debuted in its July 2021 initial public offering [2].

The deal is expected to close by the end of 2025, pending regulatory approvals and other closing conditions. If approved, the transaction means Soho House will stop trading on the New York Stock Exchange [2].

Among other big names to join Soho House’s future leadership is actor and now tech investor Ashton Kutcher, who is set to join the company’s board following the deal’s completion. Actor Ashton Kutcher will join the board, reflecting the new ownership’s ambition to combine cultural capital with operational growth. His appointment is expected to reinforce Soho House’s positioning at the intersection of lifestyle, hospitality, and innovation [3].

References:
[1] https://www.costar.com/article/2119352365/mcr-hotels-to-buy-soho-house-take-private-in-27-billion-deal
[2] https://www.hollywoodreporter.com/business/business-news/soho-house-take-private-deal-ashton-kutcher-board-1236347615/
[3] https://pe-insights.com/ashton-kutcher-joins-board-as-soho-house-buyout-value-climbs-to-2-7bn/