Soho House Acquired for £2bn as Ashton Kutcher Joins the Board
Soho House, the private members’ club chain known for its A-list clientele, has been acquired for $2.7 billion (£2bn) by a consortium that includes Hollywood actor-turned-investor Ashton Kutcher. The deal marks a significant shift for the popular chain, which has expanded from its first club in London in 1995 to 46 locations worldwide.
A Storied History and Rapid Expansion
Soho House, widely regarded as the haunt of celebrities such as Kate Moss, Kendall Jenner, and the Duke and Duchess of Sussex, has long been synonymous with exclusivity. Its first venue, opened by Nick Jones in London’s Greek Street, quickly became a gathering spot for creative minds, a reputation it holds to this day.
Beyond its traditional clubs, the group now operates a range of other high-end businesses, including Soho Works office buildings and Scorpios Beach Clubs in Mykonos and Bodrum.
Challenges Following NYSE Listing
However, Soho House has faced challenges since its 2021 IPO on the New York Stock Exchange. Despite initial excitement, its stock value has dropped significantly, reflecting growing concerns about the brand’s ability to maintain its exclusivity. The company’s shares, now priced at $9 per share, are still 18% higher than their close last Friday, although they remain well below their peak of $14.21 in August 2021.
The Acquisition Deal and New Leadership
The acquisition is led by MCR Hotels, the third-largest U.S. hotel group, known for properties like the TWA Hotel at JFK Airport and London’s BT Tower. The deal returns Soho House to private ownership, orchestrated by private equity firm Apollo. As part of the new structure, Ashton Kutcher will join the board, alongside Tyler Morse, CEO of MCR Hotels.
Morse expressed his excitement, saying: “We have long admired Soho House for bringing together cultures from around the world into a global network of 46 houses, and we look forward to the continued growth of that fabric.”
Celebrity Culture and Exclusivity Under Scrutiny
Despite its continued expansion, Soho House has faced criticism for diluting its once-exclusive appeal. With membership fees that can run into several thousand pounds, members have questioned whether the brand’s prestige still holds up.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, pointed out the challenges ahead, noting: “While Soho House can now boast a Hollywood star as a director, the chain would need more than celebrity stardust to cement its long-term future.”
What’s Next for Soho House
As the company moves to private ownership, Soho House CEO Andrew Carnie is optimistic about the future:
“The return to private ownership reflects the strong confidence our existing and incoming shareholders have in the future of Soho House.”
Carnie highlighted that the company has been focused on “building a stronger, more resilient business,” with continued guidance from its members and the spirit that has always made Soho House special.
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