Soho House, the international chain of private members’ clubs, has finalized a $2.7 billion merger to return to private ownership, just years after its 2021 initial public offering. The deal, spearheaded by billionaire Ron Burkle and backed by investors including actor Ashton Kutcher, Goldman Sachs, and Apollo Global Management, was completed on January 30, 2026, marking a pivotal moment for the company amid ongoing financial challenges.
Founded in London in 1995 by restaurateur Nick Jones, Soho House grew into a global network of over 40 clubs catering to creatives and celebrities, with membership fees starting at $750 per quarter. After going public in 2021 with shares priced at $14, the company struggled with profitability, leading to a decision to go private in a deal valued at approximately $2.7 billion. Shareholders are receiving $9 per share in cash, an 83% premium to the unaffected share price, as part of the agreement.
To finance the merger, Soho House secured a $220 million senior unsecured notes facility and issued $695 million in senior secured notes, while also amending its revolving credit facility to extend through January 2029. The transaction involved merging with parent companies EH Parent and EH MergerSub, effectively delisting the company from public markets and allowing it to focus on long-term growth without quarterly earnings pressures.
Key investors in the deal include Ron Burkle, who has been the majority shareholder since 2012, along with Ashton Kutcher, who will join the board of directors. Other board members now include Richard Caring, Mark Ein, Joe Hage, R. Tyler Morse, George Popstefanov, Reed Rayman, and Scott Stedman. In a statement, CEO Andrew Carnie emphasized that the move provides the freedom to prioritize member experience, stating, “This is a positive step. It gives us the freedom to focus on what Soho House has always been about: looking after our members, creating Houses you enjoy spending time in, and continuing to connect members in the world’s most inspiring cities.”
The company plans to invest heavily in renovations and expansions, including upgrading all bedrooms at its New York headquarters in the Meatpacking District and opening a new “social wellness space” with advanced health amenities. Additionally, Soho House will launch the Soho House Festival in Manhattan on October 3, 2026, and is progressing with construction on Soho Farmhouse New York in Rhinebeck, which will host special dinners with guest chefs.
Future openings include Soho House Tokyo, Soho House Los Cabos, Soho Desert House Palm Springs, and Soho Ranch House in Sonoma, alongside a new, larger location in New York’s Flatiron District featuring a rooftop terrace and additional bedrooms. These expansions aim to enhance the club’s global footprint and cater to its nearly 260,000 members worldwide, who have faced overcrowding issues in key cities like New York, Los Angeles, and London.
The decision to go private comes after Soho House reported improved financial results, with revenue rising 11% year-over-year in the quarter ended September 28, 2025, though it still posted a loss of nearly $19 million. The move is expected to stabilize the company’s operations and allow for strategic investments without the scrutiny of public markets, positioning it for sustainable growth in the competitive luxury hospitality sector.
As Soho House embarks on this new chapter, the focus will be on revitalizing its core offerings while expanding into new markets and wellness initiatives, ensuring it remains a premier destination for its elite membership base. With strong investor backing and a clear vision from leadership, the company is poised to navigate the challenges ahead and capitalize on opportunities in the evolving social club landscape.
