By Connor Hart
Soho House will be taken private by a group of investors led by one of the country's largest hotel owners, confirming a report by The Wall Street Journal on Sunday that stated the parties were nearing a deal.
Separately, the members' club operator also on Monday named Neil Thomson as its new finance chief, succeeding Thomas Allen.
Shares of Soho House jumped 15%, to $8.79, in premarket trading. Through Friday's close, the stock is up 35% in the past year.
Under the terms of its privatization deal, an investor group led by hotel-group MCR and its Chief Executive Tyler Morse will acquire all of Soho House's outstanding shares that the company said aren't already held by certain significant shareholders. Morse will join Soho House's board as vice chairman.
Stockholders will receive $9 a share in cash, representing a premium of approximately 83% over the stock's closing price on Dec. 18--the last trading day prior to Soho House's announcement of receiving the offer.
The offer values Soho House at approximately $2.7 billion, including debt. The deal is expected to close by the end of the year, subject to certain conditions.
Funds managed by affiliates of Apollo, equity capital provided by a consortium of strategic investors and Goldman Sachs Alternatives will support the deal, the company said.
Soho House Executive Chairman Ron Burkle, the Yucaipa Companies and certain significant shareholders will roll their controlling equity interests in the company and retain majority control of the business, the company added.
Chief Executive Andrew Carnie said that returning to private ownership will allow the company to build on recent business momentum.
MCR has 30,000 guest rooms, making it one of the largest hotel owners in the U.S. Many of its properties are select service hotels from Hilton and Marriott, but in recent years it has acquired more notable properties, such as the Royalton near Times Square and the Gramercy Park Hotel, another trendy property in Manhattan.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
August 18, 2025 06:39 ET (10:39 GMT)
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