Soho House, a chain of private members’ clubs, has been acquired for $2.7 billion (£2 billion) by a consortium that includes Hollywood actor and investor Ashton Kutcher. Established in London in 1995, Soho House now operates 46 locations across Europe, North America, and Asia, alongside several other upscale hospitality ventures.
The company, noted for its appeal among celebrities, faced financial challenges following its listing on the New York Stock Exchange in 2021, where it struggled to achieve profitability. The agreed purchase price of $9 per share is 18% higher than its closing trade price before the announcement, though it still falls short of its peak price of $14.21 reached in August 2021.
The purchase is led by MCR Hotels, the third-largest hotel group in the U.S., known for properties like the TWA Hotel at JFK Airport. Private equity firm Apollo facilitated the move to return Soho House to private ownership. Existing shareholders, including founder Nick Jones and Richard Caring of Ivy Collection, will retain their stakes in the company.
Ashton Kutcher’s role will include serving on the board alongside MCR’s CEO, Tyler Morse, who expressed enthusiasm for the acquisition, acknowledging Soho House’s global network and future growth plans, including the opening of four new locations.
The original Soho House, established by Nick Jones above his Cafe Boheme, promotes itself as a gathering place for creative individuals. Its membership includes various high-profile figures and offers diverse venues such as Shoreditch House and Soho Farmhouse, among others.
However, some critics highlight that rapid expansion has diluted its exclusivity, raising concerns about the sustainability of its business model. Industry experts suggest that the new consortium will need to carefully navigate these challenges to ensure the long-term success of Soho House. CEO Andrew Carnie acknowledged the need to build a resilient business and expressed commitment to honoring the core values of Soho House.
Source: https://www.bbc.com/news/articles/ckgjy4d01jwo?at_medium=RSS&at_campaign=rss