Soho House goes private in $2.7bn deal led by MCR Hotels

The members-only club operator Soho House has agreed to be taken private in a $2.7 billion deal after being listed on the New York stock exchange for four years.

New York-based hospitality group, MCR Hotels will lead the consortium and new equity investors Apollo which struck the deal for the company's privatisation, ditching its stock market listing.

, the equity holders in Soho House & Co will receive nine dollars (£6.64) per share in the business.

Moreover, actor turned startup investor Ashton Kutcher is set to join Soho House’ s board of directors. The MCR chief executive, Tyler Morse, will act as vice-chair.

According to the hospitality group, the new investors in Soho House & Co will pay nine dollars a share for about 15 percent of the share. The deal showed an enterprise value of about &2.7 billion, including $700 million of debt.

The company’s shares are not valued at about $2 billion, a decline from their peak of $2.8 billion after the 2021 stock exchange listing. Although the company’s stock has been trading below $9 since May 2022, the current is impressive as it offers 83 percent premium to the price.

Soho House is a single club in the central Club that was founded in 1995 by the restaurateur Nick Jones, who holds 5 percent stake. On the contrary, Ron Burkle, the US retail billionaire, is the biggest investor, holding around 40 percent of the company.

Richard Caring, the owner of the Ivy restaurant chain possesses 21 percent stake. After the deal, all three including US investment bank Golden will retain their stakes.

MCR Hotels is the third-largest hotel operator in the US, handling more than 150 sites including the High Line hotel and the TWA at JFK airport.

Solo House operates in 10 London locations and is known for attracting celebrities including Kate Moss, Kendall Jenner, Ellie Goulding, and the Duke and Duchess of Sussex.