Soho House Draws Buyout Offer – at an 80+% Premium

Soho House & Co. received a takeover offer from a consortium of investors, valuing the members-only club operator at $9 a share, according to a company statement Thursday.

The proposal represents an 83% premium to Soho House's closing price on December 18 and has garnered support from Executive Chairman Ron Burkle and his investment firm Yucaipa Companies.

The buyout offer would value the company at nearly $2 billion, below its IPO debut in 2021, when it had a market capitalization of $2.8 billion.

The identity of the third-party consortium wasn't disclosed in the announcement. The deal structure would require major shareholders, including Burkle and Yucaipa, to roll over their existing equity stakes.

The offer emerged following a strategic review initiated by Yucaipa, which believes the company's current share price fails to reflect its underlying value. In response, Soho House's board has established an independent special committee to evaluate the proposition, the statement said.

The company, known for its upscale members clubs in mostly metropolitan areas worldwide, has struggled to maintain its stock price since going public and has never made a quarterly profit over more than two decades.

The board cautioned that there's no guarantee the review will lead to a transaction or strategic shift.

Representatives for Soho House didn't respond to an immediate request for comment other than to say they plan to provide no further updates unless a specific deal is approved or the review concludes.

Upbeat Forecast

UPDATE: During a third-quarter earnings call on Thursday, Soho House executives highlighted key points about the hospitality brand's growth outlook. 

Executives emphasized that their restructuring creates “noise” in near-term results, with one-time costs, including severance payments. They said these changes position the company for profitable growth by cutting costs and improving the member experience.

Membership Model Strength

Membership revenues increased by 17% year-over-year in the quarter ending September 29, with 4,000 new Soho House members added, reaching a record high of 208,000 globally.

Soho House’s waitlist remains at record highs, and members' usage of the facilities also "continues to meet and exceed expectations."

Management says membership provides recurring revenue that helps offset volatility in demand and food and beverage spending that other hospitality companies face.

Long-term Growth Drivers

Soho House has opened 27 Soho House members clubs since 2018 that "are still in the ramp-up phase," with strong growth in newer locations like Sao Paulo, Portland, Mexico City, Rome, and Paris.

The company has seen early success with the new premium "Mews House" concept in London's Mayfair, with plans to expand to New York and other locations.

The company reported "strong" first-quarter 2025 bookings, suggesting positive momentum.

UPDATE: The article was updated at 10 am with details from a conference call for quarterly earnings.

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