Soho House buys Ashton Kutcher to join the board for £20 billion

Private member club chain Soho House has been bought for $2.7 billion (£2 billion) by a consortium involving Hollywood actors turning investor Ashton Kutcher.

The group opened its first club in London in 1995 and now owns 46 SOHO homes in Europe, North America and Asia, as well as a range of other listed hotel businesses.

It is widely regarded as a popular plague among A-level celebrities, and one of the London venues reportedly was Prince Harry and Meghan Markle’s first date.

However, since it went public on the New York Stock Exchange in 2021, the value of its stock has dropped sharply because it has struggled to make a profit without the exclusivity it once had.

The agreed quote price is $9 per share, which is 18% higher than the price traded on Friday. However, it remains below its peak of $14.21 per share reached in August 2021.

The consortium is led by MCR Hotels, the third largest hotel group in the United States, and its high-profile properties include the TWA Hotel at New York’s Kennedy International Airport and the BT Tower in London. The transaction to return SoHo House to private ownership was completed by private equity firm Apollo.

Existing SOHO Real Estate shareholders will hold shares in the company. They include founder Nick Jones, the husband of speaker Kirsty Young, and Richard Caring, owner of the chain Ivy Collection restaurant Richard Caring.

Ashton Kutcher will be a member of the board, and MCR’s boss Tyler Morse will be a member of the board.

Mr Morse said everyone at MCR was “happy to be part of the Soho House trip”.

“We have long admired Soho House to bring together cultures from around the world into a global network of 46 houses, and we look forward to the continued growth of this fabric, starting with four new homes that will soon open.”

The first SOHO home Mr Jones opened was on London’s Greek Street above his restaurant Cafe Boheme.

It is a member club with “like-minded creative homes meet, relax, play and grow.”

Members reportedly include Kate Moss, Kendall Jenner and Ellie Goulding, and the Duke of Sussex.

Its venues include Shoreditch House, Soho Farmhouse, Soho House Bangkok and Miami Poolhouse.

In addition to the SOHO Housing Club, the group’s other operations include eight SOHO Works Office buildings, as well as Scorpios Beach Clubs in Mykonos and Bodrum.

However, this expansion has led to allegations that Soho House is no longer as unique as members would expect, as its membership fees could reach thousands of pounds.

Susannah Streeter, head of currency and markets at Hargreaves Lansdown, said that while Soho House “can now boast about Hollywood stars as directors,” the chain’s need is “far less than celebrity Stardust to consolidate its long-term future.”

“MCR Hotels, Ashton Kutcher and other investors will cut work to make Soho House re-stabilized based on the viability of its business model,” she said.

“Its rapid expansion in recent years has raised concerns that its ‘exclusive’ label is worn.”

She said it was a “challenging time” for the restaurant business, and “the ideal shoppers are tightening their stylish belts.”

Andrew Carnie, CEO of Soho House, said the return to the private alliance “reflects the strong confidence of our existing and new shareholders in the future”.

Since the company floated on the NYSE, he said the company focused on “building a stronger, more resilient business.”

“I am proud of the achievements of our team and the excitement of our future as we continue to be guided by our members and take root in the spirit that makes Soho House so special.”