Soho House goes private in $2.7 billion deal as Ashton Kutcher joins the board of the swanky members’ club

The acquisition—led by New York–based MCR Hotels, one of America’s largest independent hotel owner-operators—will end Soho House’s four-year stint as a publicly traded company, and mark the start of a new chapter for the not-once-fitable members’

Under the deal, announced Aug. 18, MCR will acquire all outstanding Soho House s at $9 per in cash, an 83% premium to the unaffected stock price at the time of bid

The transaction is supported by financial heavyweights Apollo Global Management and Goldman Sachs Alternatives, alongside a conium of existing and new investors

Among the notable names joining the board post-acquisition are Ashton Kutcher, the minent actor and investor; and MCR CEO Tyler Morse, who is set to become vice chairman

Long-standing holders including Yucaipa Cos. executive chairman Ron Burkle; Soho House founder Nick Jones; and investor Richard Caring will retain their controlling equity interests, signaling continuity at the ’s leadership level

Goldman Sachs Alternatives, a backer since Soho House’s IPO, is also committing further capital to the venture

Pending holder and regulatory apval, the deal is expected to be by year-end

Upon closure, Soho House s will be delisted from the New York Stock Exchange, turning the into a privately held enterprise

The s, which combine restaurants, hotels, gyms, spas, and workspaces, now span 46 locations in 18 countries, alongside brands The Ned and Scorpios Beach

Membership is coveted, with fees running into the thousands per year and a curated application cess

As of June, Soho House had more than 270,000 members and reported $329.8 million in total revenue for the second quarter—an 8.9% increase year over year

Still, Soho House’s journey on the public has faced consistent headwinds

Investors and analysts cited model pressures, high operational costs, and slower-than-hoped expansion as reasons for the lackluster performance

Fortune reported in May 2024 the company had lost money for every year since its founding, and its rapid global expansion had left it with a substantial debt load

Short-sellers, notably GlassHouse Re, had called out long-standing blems and compared it to WeWork

More recently, Soho House came under pressure from activist investor Dan Loeb and his fund, Third Point, which were pushing for a sale cess for the chain

CEO Andrew Carnie told Fortune at the time that he saw a three- to five-year plan ahead, although a company spokesperson later clarified Carnie wasn’t putting a time frame on Soho House’s path to fitability, but rather on “holistically reorientating the against our strategic priorities of growing and enhancing membership and operating efficiently to grow fitably.” Carnie described the transaction as a vote of confidence: “This reflects the strong belief our existing and incoming holders have in the future of Soho House & Co., and the transformation we’ve led since becoming a public company.” In addition to retaining existing leadership, the acquisition is expected to bring fresh capital, hospitality know-how, and acumen into the fold

Investors hope this backing will support Soho House’s plans to open four new s and imve its platforms for members

For this story, Fortune used generative AI to help with an initial draft

An editor verified the accuracy of the information before publishing

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