MCR Hotels to Take Soho House Private in $2.7 Billion Deal Amid Market Shake-Up

Soho House, the iconic members-only club chain known for its elite clientele and global footprint, is officially going private after a turbulent stint on the public market. In a strategic move announced on August 18, 2025, New York-based MCR Hotels and a consortium of high-profile investors have agreed to acquire Soho House in a deal valued at approximately $2.7 billion, including debt.

Under the terms of the agreement, shareholders will receive $9 per share—a 17.8% premium over the company’s last closing price of $7.64. The news sent Soho House shares soaring 15% in premarket trading, signaling investor approval of the buyout.

Soho House, which went public in 2021 at $14 per share, has seen its valuation plummet by over 46% in the years since. The company had a market cap of just $1.49 billion as of last week. The decision to go private follows months of strategic review and mounting pressure from shareholders and market analysts questioning the business’s profitability and structure.

Why is Soho House Being Taken Private?

Soho House has faced increasing scrutiny over its financial sustainability and business model. Despite expanding its brand to 46 clubs worldwide since its humble beginnings in London’s Soho district in 1995, the company struggled to turn consistent profits.

A damning report by short-seller GlassHouse criticized the firm for a “broken business model and terrible accounting,” prompting further concerns among stakeholders. In response, the company began exploring alternatives, including a potential sale, as early as February 2024.

The new ownership group, led by MCR Hotels—America’s third-largest hotel owner with over 25,000 rooms—will be joined by heavyweight investors including Apollo Global Management, Goldman Sachs, and a celebrity-backed group led by actor Ashton Kutcher. Key stakeholders, including billionaire chairman Ron Burkle, founder Nick Jones, and restaurateur Richard Caring, will retain their shares under the new ownership model.

What’s Changing Under New Leadership?

As part of the transition, Tyler Morse, CEO of MCR Hotels, will become deputy chairman of Soho House, while Ashton Kutcher will take a seat on the board. Additionally, Neil Thomson, a seasoned executive with experience at Pizza Hut and KFC, replaces outgoing CFO Thomas Allen.

CEO Andrew Carnie addressed members directly, stating that the transition to private ownership aims to “build on momentum” while ensuring member experiences continue to feel “special” and exclusive. Under Carnie’s leadership, Soho House has already pivoted toward quality improvements by pausing new memberships in saturated markets like London, New York, and Los Angeles and investing in club refurbishments, enhanced food and beverage offerings, and high-end events.

What Led to This $2.7 Billion Acquisition?

This acquisition follows a challenging chapter for Soho House marked by investor dissatisfaction and public market volatility. Despite a loyal member base and aspirational branding, the company’s valuation never recovered from its underwhelming public debut. Efforts to refocus on profitability recently bore fruit—Soho House posted an operating profit of nearly $60 million in the three months leading to July, up from $35 million in the prior quarter, driven by increased member spending and operational efficiencies.

Still, the premium offered by MCR Hotels and partners—83% above the stock’s value at the end of 2024—was too attractive for many investors to ignore.

Why It Matters for the Hospitality Industry

This acquisition is a signal that the luxury hospitality space remains a hotbed for private investment, particularly in lifestyle brands with strong identity and loyal clientele. MCR Hotels’ previous high-profile acquisitions, such as London’s BT Tower and the retro-chic TWA Hotel in New York, showcase its commitment to building a portfolio that marries design, exclusivity, and experiential luxury.

Bringing Soho House under private control offers breathing room for innovation and long-term strategy, away from the scrutiny and short-termism of public shareholders.

With this bold move, Soho House is poised for a rejuvenation—one that prioritizes exclusivity, experience, and profitability, backed by some of the most influential names in global hospitality and investment.

For your information:

What is Soho House known for?
Soho House is a global chain of private members’ clubs catering primarily to creatives and professionals in media, arts, and entertainment. Founded in London, it has grown into a lifestyle brand with locations worldwide.

Why did Soho House go private?
The company faced ongoing valuation struggles and criticism from analysts. The move to go private allows more strategic flexibility and long-term investment without public market pressure.

Who is leading the Soho House acquisition?
The acquisition is led by MCR Hotels, in partnership with investors like Apollo Global Management, Goldman Sachs, and actor Ashton Kutcher.

How has Soho House performed financially?
Despite decades of inconsistent profits, the company recently reported back-to-back profitable quarters, reflecting improved operations and member engagement.

What changes can members expect after the acquisition?
Members can expect enhanced services, refurbished locations, and more exclusive experiences as the company shifts its focus toward long-term value and premium offerings.