Soho House has completed a US$2.7 billion take-private transaction led by Yucaipa Companies, allowing the hospitality group to refocus on long-term growth and member experience after facing profitability challenges as a publicly listed company.

Information on the target

Soho House, a members-only club and hospitality group founded in London in 1995, has successfully transitioned back to private ownership following a US$2.7 billion take-private transaction completed on January 29. This strategic move marks the end of a tumultuous period as a publicly listed company, allowing Soho House to realign its focus on long-term growth and member experience. The deal was finalized with EH Parent, an affiliate of the West Hollywood-based private equity firm Yucaipa Companies, led by founder Ron Burkle, who has been a significant stakeholder since acquiring a controlling interest in 2012.

With over 200,000 members across 46 locations worldwide, Soho House has established itself as a global private members’ platform. Membership fees range from approximately US$2,000 to US$6,000, depending on the level of access. Despite generating substantial membership revenue, the company faced challenges in achieving consistent profitability following its IPO in 2021, leading to net losses in several reporting periods and prompting the decision to revert to private ownership.

Industry overview in the target’s specific country

The hospitality and leisure industry in the United Kingdom has undergone significant transformation over the past decade, driven by changing consumer preferences and the rise of experiential offerings. The demand for exclusive, high-quality experiences has surged,