Soho House, the global members-only club and hospitality brand, announced on August 18, 2025, that it will go private in a deal valued at approximately $2.7 billion, including debt. The decision marks a significant shift for the company, which only debuted on the public markets in 2021. The privatization is being spearheaded by MCR Hotels, one of the largest hotel owners in the United States, with backing from prominent investors including Apollo Global Management, actor and entrepreneur Ashton Kutcher, and other financial supporters.
Under the terms of the agreement, shareholders will receive $9 per share in cash. This offer represents an 83% premium over the company’s stock price prior to December 2024, when initial speculation about a possible sale began circulating. Despite the considerable premium, the offer remains below Soho House’s original IPO price of $14, highlighting the stock’s underwhelming performance on the public market over the past four years.
The structure of the company’s ownership played a pivotal role in shaping the transaction. Approximately 85% of Soho House’s shares are held by insiders, including Executive Chairman Ron Burkle and other early backers. This concentration of insider ownership effectively limited outside interest in acquiring the company and discouraged rival bids from emerging. Burkle, through his investment firm Yucaipa Companies, alongside other insider investors such as Goldman Sachs Alternatives, will roll over most of their existing equity stakes into the new private entity. This arrangement allows the current leadership and stakeholders to retain majority control and strategic influence over the company’s next chapter.
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In addition to financial restructuring, the leadership team at Soho House is also undergoing changes. Ashton Kutcher, known not only for his acting career but also for his investments in numerous tech and consumer companies, will join the board of directors. His involvement is expected to bring added visibility to the brand and potential access to new capital and innovation strategies. Meanwhile, Neil Thomson has been appointed as the company’s new Chief Financial Officer, replacing Thomas Allen, who has stepped down from the role. These changes suggest a broader effort to reenergize the executive team as the company transitions out of the public spotlight.
Activist investor Dan Loeb, who had previously pushed for a transparent and fair sales process, has publicly endorsed the deal. Loeb, through his firm Third Point, had been vocal about the need for a reassessment of Soho House’s direction and governance. His support for the transaction is seen as an important endorsement of its legitimacy and strategic logic.
Analysts and industry observers are interpreting the move not as a play for aggressive expansion, but rather as a deliberate strategic reset. The transaction includes approximately $845 million in new debt financing provided by Goldman Sachs and Apollo, alongside hybrid financing instruments that combine equity and debt components. The aim is to deliver mid-teens returns for investors, in contrast to the more aggressive, high-leverage models typically associated with private equity buyouts. This approach indicates a more measured strategy, focused on long-term brand health and financial sustainability.
MCR Hotels, which operates over 150 hotels across the United States, is expected to bring operational discipline and industry expertise to Soho House’s portfolio, which includes luxury properties and members’ clubs in cities around the world. The involvement of MCR suggests a renewed focus on profitability and efficiency, which could help Soho House better navigate the competitive hospitality landscape.
Financially, Soho House has shown recent signs of improvement. The company reported a nearly 9% year-over-year increase in revenue for the second quarter of 2025, reaching $329.8 million. Membership has also grown steadily, with more than 270,000 members globally. These numbers indicate a brand with strong demand and growing revenue potential, even as it moves away from the volatility of public market scrutiny.
Soho House originally positioned itself as a lifestyle brand targeting creative professionals and entrepreneurs, with its exclusive clubs offering luxurious experiences in urban hubs such as London, New York, Los Angeles, and Berlin. However, its journey as a public company was marred by inconsistent earnings, investor skepticism about its valuation, and questions about its path to profitability.
By returning to private ownership, Soho House’s leadership appears committed to recalibrating its strategy without the pressures of quarterly earnings reports or activist shareholders demanding short-term results. With a refreshed board, a new financial structure, and renewed operational focus, the company now seeks to redefine its growth path from behind the scenes.
The deal is expected to close later this year, pending regulatory approvals and the completion of customary closing conditions.
