Latest news with #MCRHotels
Yahoo
an hour ago
- Business
- Yahoo
Soho House goes private in $2.7 billion deal as Ashton Kutcher joins the board of the swanky members' club
Soho House, the global private members' club brand renowned for cultivating creative communities in stylish spaces worldwide, is set to return to private ownership in a landmark $2.7 billion deal. The acquisition—led by New York–based MCR Hotels, one of America's largest independent hotel owner-operators—will end Soho House's four-year stint as a publicly traded company, and mark the start of a new chapter for the not-once-profitable members' club. Under the deal, announced Aug. 18, MCR will acquire all outstanding Soho House shares at $9 per share in cash, an 83% premium to the unaffected stock price at the time of bid. The transaction is supported by financial heavyweights Apollo Global Management and Goldman Sachs Alternatives, alongside a consortium of existing and new investors. Among the notable names joining the board post-acquisition are Ashton Kutcher, the prominent actor and tech investor; and MCR CEO Tyler Morse, who is set to become vice chairman. Long-standing shareholders including Yucaipa Cos. executive chairman Ron Burkle; Soho House founder Nick Jones; and investor Richard Caring will retain their controlling equity interests, signaling continuity at the club's leadership level. Goldman Sachs Alternatives, a backer since Soho House's IPO, is also committing further capital to the venture. Pending shareholder and regulatory approval, the deal is expected to be completed by year-end. Upon closure, Soho House shares will be delisted from the New York Stock Exchange, turning the business into a privately held enterprise. Soho House: From cool London origins to global influence Founded on London's Greek Street in 1995, Soho House rapidly became a byword for luxury, exclusivity, and a vibrant creative scene. The clubs, which combine restaurants, hotels, gyms, spas, and workspaces, now span 46 locations in 18 countries, alongside brands like The Ned and Scorpios Beach Club. Membership is coveted, with club fees running into the thousands per year and a curated application process. As of June, Soho House had more than 270,000 members and reported $329.8 million in total revenue for the second quarter—an 8.9% increase year over year. Still, Soho House's journey on the public markets has faced consistent headwinds. Its July 2021 IPO priced shares at $14, but by mid-2025, shares had sagged to below $9, reflecting more than a 30% drop as profitability concerns and market volatility dogged the brand. Investors and analysts cited business model pressures, high operational costs, and slower-than-hoped expansion as reasons for the lackluster performance. Fortune reported in May 2024 the company had lost money for every year since its founding, and its rapid global expansion had left it with a substantial debt load. Short-sellers, notably GlassHouse Research, had called out long-standing problems and compared it to WeWork. More recently, Soho House came under pressure from activist investor Dan Loeb and his fund, Third Point, which were pushing for a sale process for the chain. CEO Andrew Carnie told Fortune at the time that he saw a three- to five-year plan ahead, although a company spokesperson later clarified Carnie wasn't putting a time frame on Soho House's path to profitability, but rather on 'holistically reorientating the business against our strategic priorities of growing and enhancing membership and operating efficiently to grow profitably.' Carnie described the transaction as a vote of confidence: 'This reflects the strong belief our existing and incoming shareholders have in the future of Soho House & Co., and the transformation we've led since becoming a public company.' In addition to retaining existing leadership, the acquisition is expected to bring fresh capital, hospitality know-how, and tech acumen into the fold. MCR, which owns more than 150 hotels globally—including the TWA Hotel at JFK Airport and the High Line Hotel in New York—brings operational expertise and a track record of innovation. Investors hope this backing will support Soho House's plans to open four new clubs and improve its tech platforms for members. For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. This story was originally featured on
Yahoo
an hour ago
- Business
- Yahoo
MCR Hotels takes Soho House private in $2.7B deal
This story was originally published on Hotel Dive. To receive daily news and insights, subscribe to our free daily Hotel Dive newsletter. Dive Brief: A group of investors led by New York-based MCR Hotels and its CEO and chairman, Tyler Morse, will take membership club Soho House private in a $2.7 billion deal, Soho House & Co. announced Monday. The investor group will acquire outstanding shares of Soho House & Co. as Executive Chairman Ron Burkle and the investment firm Yucaipa Companies roll their controlling equity interests into the membership club company, retaining majority control of the business. MCR, which claims it is the third-largest hotel owner-operator in the U.S., will make a 'meaningful new money investment' into Soho House as a shareholder, per the announcement. Morse will join the company's board of directors as vice chairman. Dive Insight: Affiliates of asset management business Apollo are supporting the $2.7 billion transaction through additional capital in the form of debt and common equity, according to Soho House. Additional investors — including Goldman Sachs Alternatives and actor-turned-investor Ashton Kutcher, who will also join Soho House's board of directors — will provide further capital. The company's existing shareholders will also roll the majority of their shares of the company's stock. 'This transaction reflects the strong confidence our existing and incoming shareholders have in the future of Soho House & Co., and the transformation we've led since becoming a public company,' said Soho House CEO Andrew Carnie in a statement. The company held its initial public offering in 2021. Since then, Carnie added, the firm 'delivered consistent, disciplined growth with revenue increasing at an average annual rate of double digit growth' despite 'challenging economic conditions and global uncertainty.' Soho House, which first opened in 1995, has expanded globally since going public, adding locations in Sao Paulo, Mexico City, Paris and Nashville, Tennessee, in recent years. According to Carnie, going private 'enables us to build on this momentum.' Morse said MCR's investment 'represents a strategic opportunity to combine our operational expertise with one of the most distinctive brands in hospitality.' The 2006-founded hotel investment firm currently commands a $5 billion portfolio of 150 premium-branded hotels, including Sheraton New York Times Square, The High Line Hotel and The Gramercy Park Hotel in New York. Soho House, which describes itself as 'a global membership platform of physical and digital spaces,' currently has 46 Soho House locations globally. In the U.S., that includes properties in New York; Austin, Texas; Chicago; Portland, Oregon; Nashville; Los Angeles; and Miami. Recommended Reading JLL announces sale of 75% stake in Mandarin Oriental New York Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Business
- Yahoo
Why Soho House (SHCO) Stock Is Up Today
What Happened? Shares of social club operator Soho House (NYSE:SHCO) jumped 15.3% in the afternoon session after it agreed to be taken private in a deal with an enterprise value of approximately $2.7 billion. The members' club chain entered into a definitive agreement with an investor group led by New York-based MCR Hotels. Under the terms of the deal, shareholders will receive $9.00 in cash for each share they own, representing a significant premium over the previous closing price of $7.64. The transaction will take the hospitality group, which listed on the New York Stock Exchange in 2021, back into private ownership. Adding a celebrity element to the deal, actor and investor Ashton Kutcher is part of the acquiring consortium and is set to join the company's board of directors upon completion of the transaction. The move comes after a challenging four-year period for the company on the public market. Is now the time to buy Soho House? Access our full analysis report here, it's free. What Is The Market Telling Us Soho House's shares are extremely volatile and have had 31 moves greater than 5% over the last year. But moves this big are rare even for Soho House and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 6 days ago when the stock gained 3.1% on the news that the latest Consumer Price Index (CPI) report showed inflation holding steady, bolstering investor optimism for a potential interest rate cut by the Federal Reserve. The data, which revealed that inflation remained at 2.7% for the year ending in July, was seen as a positive sign by investors. This stability increases the likelihood that the Federal Reserve might lower interest rates at its upcoming September meeting. Lower interest rates can stimulate the economy by making borrowing cheaper for both consumers and businesses, which often translates into higher consumer spending. This is particularly beneficial for the Consumer Discretionary sector, which includes companies selling non-essential goods and services like apparel, travel, and electronics. Soho House is up 18.8% since the beginning of the year, and at $8.79 per share, has set a new 52-week high. Investors who bought $1,000 worth of Soho House's shares at the IPO in July 2021 would now be looking at an investment worth $694.31. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
7 hours ago
- Business
- Reuters
Soho House to go private in $2.7-billion deal, actor Ashton Kutcher to join board
Aug 18 (Reuters) - Soho House (SHCO.N), opens new tab is going private in a $2.7-billion deal led by New York-based MCR Hotels, capping a turbulent market run and financial struggles that erased nearly half of the high-end members club operator's value since its 2021 debut. Its shareholders will get $9 per share, a 17.8% premium to the last closing price. Soho shares shot up more than 15% after the announcement and were changing hands for around $8.80 in early afternoon trading. Actor and tech investor Ashton Kutcher will also join Soho's board following the deal, and hospitality veteran Neil Thomson will succeed Thomas Allen as chief financial officer immediately. "However, Soho House will need a bit more than celebrity stardust to cement its long-term future," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. "Its rapid expansion in recent years has sparked concerns that its 'exclusive' label was wearing thin", while the wider consumer spending pullback in the hospitality industry has added pressure as Soho relies on in-house purchases such as meals and entertainment, Streeter said. Soho was started by restaurateur Nick Jones in 1995 on London's Greek Street above his restaurant, Cafe Boheme, as a meeting place for creative people. The club now has operations across Europe, North America, and Asia. But less than three years after listing in New York, Soho started exploring the idea of going private as it struggled to turn a profit despite growth in membership and revenue. Hedge fund manager Daniel Loeb, whose firm Third Point owns a nearly 10% stake in Soho, and who has been pushing for a "fair" sale process, on Monday told Reuters he is pleased with the planned move and supports the deal. "As both a shareholder and Soho House member, I support this transaction and am pleased to see management of the club in good hands," Loeb said. Under the new deal, MCR Hotels will get Soho's publicly traded shares, while founder Nick Jones and Executive Chairman Ron Burkle and his investment firm Yucaipa will retain majority control of the business. Burkle's Yucaipa and founder Jones collectively own about three-quarters of the company. Funds managed by affiliates of Apollo Global Management (APO.N), opens new tab are supporting the deal through hybrid capital financing, Soho said. Apollo CEO Marc Rowan said this month he expects hybrid financing, a mixture of debt and equity, to be the firm's fastest-growing business segment. Apollo partner Reed Rayman told Reuters those structures were allowing Apollo to expand its portfolio. "Hybrid allows us to participate in situations where Apollo as a firm would never have participated," Rayman said. Apollo's contribution to the deal is worth around $850 million in debt and equity, a person familiar with the matter said.
The Guardian
8 hours ago
- Business
- The Guardian
Soho House members' club to go private in $2.7bn deal as Ashton Kutcher joins board
The members' club chain Soho House has agreed a $2.7bn (£2bn) deal to take it private after a tricky four years listed on the New York stock exchange. New York-based MCR Hotels will lead new equity investors in the chain of clubs as part of a deal that will involve it ditching its stock market listing. Actor turned startup investor Ashton Kutcher – who is thought to have been a longstanding member – will also join Soho House's board of directors, while the MCR chief executive, Tyler Morse, will be vice-chair. Soho House was founded in 1995 with a single club in the central London area from which it takes its name. It was founded by the restaurateur Nick Jones, who has a 5% stake, although the biggest investor is the US retail billionaire Ron Burkle, who holds 40% of the company. Richard Caring, the owner of the Ivy restaurant chain, has a 21% stake. All three will retain their stakes, as will the US investment bank Goldman Sachs, which has 8%. The new investors will pay $9 a share for about 15% of the Soho House & Co shares that trade publicly. The company said the deal implied an enterprise value of about $2.7bn, although that included $700m of debt. The offer leaves the value of its shares – at about $2bn – well below the $2.8bn level it achieved shortly after listing in 2021. The company has traded below $9 a share since May 2022, although it said that offer represented an 83% premium to the price before investor interest was revealed in December. MCR Hotels is the third-largest hotel operator in the US, with more than 150 sites including the High Line hotel and the TWA at JFK airport, both in New York. It is converting the BT Tower in London's Fitzrovia into a hotel, after reaching a deal last year to buy it for £275m. Soho House operates 10 locations in London, and 48 that are either open or planned around the world, ranging from Paris and Istanbul to Bangkok and Mumbai. It has four clubs in Los Angeles and three in New York. While it is listed in New York, its main office is in London. It attracts a celebrity clientele, with Kate Moss, Kendall Jenner and Ellie Goulding among those spotted at its clubs. The Duke and Duchess of Sussex, Harry and Meghan, met on a blind date in 2016 at its 76 Dean Street house in London. However, the company has had to balance the rapid and expensive global expansion of the chain with the difficulty of retaining the feeling of exclusivity demanded by the 213,000 members who must pay an annual fee of up to £2,920 a year for access to every property. Its share price has dropped from above $14 in August 2021 to $7.64 on Friday. The company has lost a cumulative $739m in the four years it has been listed, although it has made a net profit in its past three quarters. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Its struggles have attracted attention from activist investors who push for improvements in companies. Third Point, the hedge fund run by the billionaire Dan Loeb, had argued that Soho House should seek other investors to try to push for a competitive bidding process. The Wall Street short sellers GlassHouse had previously raised concerns about Soho House's accounting, although these were rejected by the company. Andrew Carnie, the chief executive of Soho House & Co, said the deal 'reflects the strong confidence our existing and incoming shareholders have in the future of Soho House & Co', despite a 'backdrop of challenging economic conditions and global uncertainty'. The company argues that it has become a more efficient business in the past two years, allowing it to increase in size more profitably. Revenue has doubled in the past three years. 'Returning to private ownership enables us to build on this momentum, with the support of world class hospitality and investment partners,' Carnie said. 'I'm incredibly proud of what our teams have accomplished and am excited about our future, as we continue to be guided by our members and grounded in the spirit that makes Soho House so special.'
