Soho House Parent Shrugs Off Annual Loss With Boast of Growth Plans
Photo Credit: MCG's leading brand Soho House accelerated its development pace in recent months (pictured: the new Soho House Nashville), but profitability remains elusive. Membership Collective Group
Skift Take
How long can Soho House owner Membership Collective Group keep losing money? More clubs and increased membership are one way to tell a growth story, but investors eventually want to see profitability.
Membership Collective Group, owner of the Soho House chain of membership clubs, posted a hefty financial loss last year. Executives bragged anyway.
The company, which went public last year and has never posted a profit, is on track to add nine new Soho House properties this year and plans to double its overall footprint to 85 Houses in the next five years, MCG leaders reported Wednesday. But profitability remains elusive: MCG lost a little more than $265 million last year and lost nearly $42 million in the fourth quarter.
Company leaders focused more on touting their elevated development pace and membership wait lists rather than ongoing financial losses.
“It’s been a year of strong growth for MCG, despite what at times have been challenging conditions for our Houses across the world, especially with the emergence of the Omicron Covid variant in December, which impacted the business during one of our busiest periods,â€
