Soho House is set to go private in a deal valued at $2.7 billion. MCR Hotels, led by Tyler Morse and known for properties such as the TWA Hotel at JFK Airport, The High Line Hotel, and the Gramercy Park Hotel, will lead a group of investors to acquire all outstanding public stock at $9 per share. This price represents an 18 percent premium over Friday’s closing price but remains below the company’s initial public offering price of $14 in 2021.
Ron Burkle and his Yucaipa Companies will maintain majority control of Soho House after the transaction by rolling over their existing stake. Tyler Morse will join the board as vice chairman. Actor Ashton Kutcher has joined the board as well, participating through a group providing new equity capital.
Apollo Global Management is refinancing about $700 million in debt for Soho House as part of this agreement.
Soho House operates 46 locations worldwide and has more than 200,000 members. The company was founded in 1995 and has played a significant role in shaping the members-only club scene in New York City, acquiring properties and signing long-term leases across recent years. Other clubs that have followed include Casa Cipriani, Zero Bond, and Aman New York.
The market for private clubs continues to expand in New York City. Chetrit Organization recently signed a lease with Lightning Society for a new membership club covering 19,000 square feet. Family-oriented clubs are also growing; Little Big Hospitality secured a 45,000-square-foot lease last month at CIM Group’s 50 Columbia Heights in Brooklyn Heights to launch The Beginning Clubhouse, which is scheduled to open next summer.
“Soho House goes private in $2.7B deal,” said the company in its announcement.
