Soho House, the renowned chain of private clubs and hotels, is to delist from the New York Stock Exchange and revert to private ownership. The deal, led by the US-based MCR Hotels Group, the third-largest hotel chain in the US, values the company at about $2.7bn. including debt, ending a difficult period in the stock market.
The investor group, led by MCR Hotels and its CEO, Tyler Morse, will pay $9 per share. The offered price represents an 83% premium to the stock’s value on Dec. 18, 2024, the date before the initial offering was announced, signaling investors’ confidence in the brand’s turnaround potential. Following the announcement, the company’s shares appreciated 16%.
The strategic move comes after Soho House, which listed in 2021 in a deal that attracted $420m, lost almost half its market value due to financial difficulties.
Under the terms of the deal, Ronald Burkle and his investment firm, Yucaipa Companies LLC, will remain the majority shareholders, retaining control of the company. The new partner, MCR Hotels, is the third-largest hotel owner and operator in the US, known for owning iconic assets such as the TWA hotel at JFK Airport and the BT Tower in London.