Soho House, a members-only club with a celebrity clientele, will go private in a deal valued at $2.7 billion. The move is led by MCR Hotels, owned by Tyler Morse, which will acquire the company’s public stock for $9 per share. This price represents an 18 percent premium over Friday’s closing but remains below Soho House’s initial public offering price of $14 in 2021.
Ron Burkle and his Yucaipa Companies will retain majority control of the privatized company. “Morse will snag a seat on the board as vice chairman,” according to the press release. Ashton Kutcher is among new investors providing equity capital and has joined the board. Apollo Global Management is refinancing about $700 million in debt as part of the transaction.
Founded in 1995, Soho House operates 46 locations worldwide and has more than 200,000 members. The company has been influential in establishing members-only clubs as a fixture of New York City’s social scene.
The popularity of private clubs continues to grow in New York City. For example, Chetrit Organization recently signed a 19,000-square-foot lease with Lightning Society for a new membership club. Family-oriented clubs are also expanding; Little Big Hospitality secured a 45,000-square-foot lease at CIM Group’s 50 Columbia Heights to open The Beginning Clubhouse next summer.
