Soho House is returning to private ownership in a $2.7 billion transaction, just a few years after its 2021 initial public offering. The deal is being led by billionaire Ron Burkle, the members-only club confirmed on Thursday.<\/p>\n\n\n\n
The investor group includes actor Ashton Kutcher\u2014who will join Soho House\u2019s board of directors\u2014alongside major financial players such as Goldman Sachs and Apollo Global Management.<\/p>\n\n\n\n
In a message to members obtained by Page Six, CEO Andrew Carnie described the move as a strategic reset. \u201cThis is a positive step,\u201d he wrote. \u201cIt gives us the freedom to focus on what Soho House has always been about: looking after our members, creating Houses you enjoy spending time in, and continuing to connect members in the world\u2019s most inspiring cities. We have an exciting year and future ahead of us.\u201d<\/p>\n\n\n\n
The privatization comes as Soho House continues to invest heavily in expansion and upgrades. At its Meatpacking District headquarters in New York, all bedrooms are currently being renovated, and plans are underway to open a new two-floor \u201csocial wellness space.\u201d The facility is expected to offer services such as diagnostic testing, IV therapy, contrast suites, hyperbaric chambers, and red light therapy.<\/p>\n\n\n\n
The company is also preparing to debut the Soho House Festival in Manhattan on October 3. Construction remains ongoing at Soho Farmhouse New York in Rhinebeck, where a series of special dinners hosted by guest chefs is planned. Later this year, work will begin on New York City\u2019s fourth\u2014and largest\u2014Soho House in the Flatiron District, featuring a Soho Health Club, rooftop terrace, and additional bedrooms.<\/p>\n\n\n\n
On the West Coast, Soho House is adding a rooftop gym at Soho House Holloway and opening a new outpost in Los Cabos. Looking ahead to next year, Soho Desert House Palm Springs in the Coachella Valley is set to open, alongside Soho Ranch House in Sonoma.<\/p>\n\n\n\n
Soho House went public in 2021 at $14 per share, but its stock price has fluctuated amid ongoing losses. However, according to The Wall Street Journal, the company\u2019s financial performance has recently shown signs of improvement. Revenue rose 11% year over year in the quarter ending September 28, although it reported a nearly $19 million loss after two quarters of profitability.<\/p>\n\n\n\n
Ron Burkle, who has been Soho House\u2019s majority shareholder since 2012, led the take-private deal, with participation from Goldman Sachs Asset Management and Apollo Global Management. Reinforcing the company\u2019s renewed focus, Carnie said, \u201cWe\u2019re investing in what made Soho House special from the beginning\u2014there\u2019s never been a better time to be a member.\u201d<\/p>\n\n\n\n
Founded in London in 1995, Soho House opened its first U.S. location in New York in 2003. Today, the brand operates more than 40 clubs worldwide.<\/p>\n\n\n\n