A group of investors, spearheaded by the owner of several boutique New York hotels, has reached an agreement to take Soho House & Co. private in a significant $2.7 billion acquisition. This move comes as the exclusive members' club operator has faced challenges since its initial public offering. The deal aims to provide a fresh start for Soho House, which has struggled to maintain its market position.
The acquisition will be led by MCR, a prominent hotel ownership and investment firm. Tyler Morse, the chairman and CEO of MCR, will spearhead the buyout, purchasing the outstanding shares not held by specific shareholders for approximately $9 per share in cash. This offer represents a remarkable premium of about 83% over the closing stock price recorded on December 18, the last trading day before Soho House disclosed that it had received an acquisition proposal.
This transaction marks a pivotal moment for Soho House & Co., which has been navigating a challenging landscape since going public. The decision to privatize under MCR's leadership is expected to streamline operations and refocus the brand's identity, potentially revitalizing its growth trajectory. Investors and club members alike are keenly observing how this change will influence the future of the iconic members' club.
The $2.7 billion deal to take Soho House & Co. private highlights the ongoing interest in the luxury hospitality sector despite recent market fluctuations. As MCR prepares to execute this acquisition, the industry watches closely to see how this strategic move will reshape the future of Soho House and its offerings to members.
