Soho House, the exclusive private members’ club known for its celebrity following and stylish venues, is reportedly on the brink of striking a huge $1.8 billion (£1.3bn) deal to go private after a rocky few years on the stock market.
According to reports from the Wall Street Journal, New York-based MCR Hotels is set to lead a group of fresh investors who would buy into the business and help it withdraw from its current listing on the New York Stock Exchange.
Founded in 1995 by British restaurateur Nick Jones, Soho House began as a single London club before blossoming into a global network of members-only spaces. Jones still owns around 5% of the company, while its biggest backers include U.S. retail billionaire Ron Burkle with a 40% stake, and Ivy restaurant chain owner Richard Caring, who holds about 21%.
Under the proposed deal, new investors are expected to buy roughly 15% of the company’s publicly traded shares at about $9 each. That price values Soho House at about $1.8bn — a steep drop from the $2.8bn valuation it enjoyed shortly after going public in 2021.
MCR Hotels, which already operates more than 150 hotels across the U.S., including New York landmarks like the TWA Hotel at JFK Airport and the High Line Hotel, is set to take the lead. The group is also behind the high-profile redevelopment of London’s iconic BT Tower, purchased for £275m last year.
Today, Soho House runs 10 clubs in London and has 48 locations either open or in development around the world, spanning cities like Paris, Istanbul, Mumbai, and Bangkok. In the U.S. alone, it operates four houses in Los Angeles and three in New York. Its reputation as a hub for A-listers remains intact — stars like Kate Moss, Kendall Jenner, and Ellie Goulding have all been spotted there, and it’s famously where Prince Harry and Meghan Markle first met on a blind date in 2016 at Dean Street House in London.
But behind the glamour, Soho House has faced some big challenges. Rapid global expansion has come at a cost, and balancing growth with the sense of exclusivity demanded by its 270,000 members hasn’t been easy. Membership fees for full access can reach as high as £2,920 a year.
Financially, the company has struggled since listing in 2021. Its share price has fallen from over $14 to just $7.64 as of last week, and it has racked up nearly $740 million in losses since going public — though it has finally started turning quarterly profits over the past year.
These struggles have attracted activist investors. Billionaire Dan Loeb’s hedge fund, Third Point, has pushed the company to explore competitive bids to maximize shareholder value. Meanwhile, short-sellers at GlassHouse raised questions about Soho House’s accounting practices, which the company dismissed.
For now, all eyes are on the potential buyout led by MCR. If the deal goes through, it would mark a major shift for one of the world’s most famous private clubs — a return to privacy, away from the scrutiny of Wall Street.
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