Private Party: Soho House Checks Out of the Stock Exchange

If you’ve ever sipped a martini in a swoon-worthy armchair, debated oat milk vs cow over avocado on toast, or waited three months for a “local” members’ club to let you in – chances are, you’ve brushed up against the world of Soho House.

The global club-hotel-restaurant-spa-gym-creative-community hybrid has long been more than the sum of its parts. It’s not just a place to stay or eat. It’s a lifestyle proposition – with just enough exclusivity to make it feel special, but enough locations to make it feel familiar, whether you’re in Shoreditch, Stockholm or West Hollywood.

But now, after three years on the public market, the velvet rope is shifting again – this time away from the stock exchange altogether. In a deal worth $2.7 billion, US hotel heavyweight MCR Hotels is taking Soho House private, with backing from Apollo Global Management and a handful of existing investors who’ve chosen to stay in.

The stock market never quite got the vibe. And now, it won’t have to.

From IPO to RSVP: A Short Stay on the Stock Market

Back in 2021, Soho House – formally known as Membership Collective Group, though no one’s ever called it that over cocktails – listed on the New York Stock Exchange at $14 a share. It was a confident move for a brand that had always been part insider club, part global tastemaker.

But public markets have a way of asking awkward questions:
“Why aren’t you profitable?”
“How many new clubs can you open before the brand gets tired?”
“Is this… a hospitality business or a luxury social experiment?”

Three years on, the price had sunk to $7.60 – nearly half its IPO value – and the market’s love affair had cooled. Now, with MCR’s offer of $9 a share, public investors are being offered a tidy(ish) exit and quietly shown the door.

The New Hosts: MCR and Apollo

So, who are the new proprietors of this global design empire?

MCR Hotels is America’s fourth-largest hotel owner, best known for the TWA Hotel at JFK airport – a lovingly restored 1960s terminal turned retro-chic destination, complete with a rooftop pool and views of the runway. In other words, they know how to run a big, complicated hospitality business. And they know a good brand when they see one.

But they don’t do mood lighting and mix picantes for a living. MCR is built on real estate, room revenue, and running a tight operational ship. Their model is big, structured, and efficient. Soho House is… not.

They’re backed in this venture by Apollo Global Management, who’ve put up over $800 million in a mix of debt and equity. Apollo, if you’re unfamiliar, is the kind of firm that doesn’t blink at nine-figure numbers and has a long history of deals that combine glamour with spreadsheets.

Together, they’re taking Soho House off the market – literally – and giving it space to regroup, regrow, and possibly even relax.

Why Now? And Why This?

At first glance, it’s an odd pairing.

One side runs hotels at scale. The other trades on exclusivity, and the promise of being exactly where you’re supposed to be.

But that’s exactly the appeal. MCR sees in Soho House a brand with global reach, a fiercely loyal membership, and profits only just beginning to surface after 30 years of financial faffing. For Soho House, the attraction is equally clear: fewer earnings calls, fewer hedge funds breathing down their necks, and a partner who knows how to turn beautiful but slightly chaotic businesses into something that actually makes money.

MCR can fill hotel beds. What Soho House offers is harder to replicate – atmosphere, identity, and the illusion of effortless cool.

But Will it Work?

Now we get to the fun part – because nothing in this deal is guaranteed.

Soho House is famously hard to scale without losing its mystique. The brand relies on carefully curated environments, a certain kind of member (creatively inclined, well moisturised), and locations that feel special – not mass-produced.

MCR, by contrast, built its reputation on running big hotels efficiently and getting the most out of every square foot – spreadsheets first, mood boards later. It’s a bit like asking a Michelin-starred chef to streamline your neighbourhood wine bar: yes, costs might come down, but the magic might disappear too.

Then there’s the not-so-small matter of debt. Apollo’s putting up a hefty package – part equity, part debt – and while Soho House has only just edged into the black, it wouldn’t take much to knock it back out. If the economy wobbles and members start questioning those pricey renewal fees, the repayments could quickly move from manageable to migraine-inducing.

And then there’s the lure of growth. More clubs, more cities, more shiny openings to announce – all of which look great on a press release but come with real risk. Soho House has already been criticised for expanding into places that felt a bit off-brand. Push too far, or in the wrong direction, and the exclusivity that members pay for starts to feel a little too available. And once the magic slips, it’s very hard to get it back.

What Happens Next

Legally, the process is straightforward: shareholders vote, the deal goes through, the company delists. But operationally and culturally, the next chapter will be trickier to write.

MCR needs to find a way to support growth without flattening the brand. Soho House needs to prove it can be profitable and maintain the aura that everyone’s been trying to bottle. And Apollo – well, Apollo will expect a return – cool factor or not.

If they get it right, this could be the moment Soho House moves from cult brand to commercial powerhouse – without losing its soul in the process.

If they don’t, it could become another textbook example of what happens when financial discipline squeezes the life out of a brand.

The Last Word

Soho House was never built to be a listed company. Its business model makes more sense over years than quarters, and its appeal was always more emotional than financial.

Going private won’t fix everything. But it might just give the brand space to breathe – and a better chance at becoming sustainably brilliant, not just brilliantly branded.

In the meantime, spare a thought for the analysts who once tried to make sense of Soho House’s revenue streams in Excel. They can now go back to spreadsheets they actually understand.

Like Travelodge.