Soho House Goes Private in $2.7 Billion Deal with MCR Hotels at the Helm

Soho House to Exit Public Markets in Major $2.7B Private Deal

Soho House & Co, the high-profile members’ club best known for its exclusive venues across major cities, will soon leave the stock market in a $2.7 billion deal. New York-based MCR Hotels is taking the lead, teaming up with other major investors to buy out shareholders at $9 per share. That’s a clear sign they’re betting big on the future of the hospitality industry, especially in the premium space.

Soho House executive chairman Ron Burkle isn’t letting go just yet—his investment firm, Yucaipa Companies, is rolling its controlling stake into the deal. That means Burkle stays deeply involved and keeps majority control over the business, even as MCR steps into the picture as a key shareholder. Tyler Morse, MCR’s CEO, will join Soho House’s board as vice chairman. He’s not exactly new to big, bold hospitality moves—he’s already behind some iconic hotels like the TWA Hotel at JFK and the Gramercy Park Hotel in NYC. More recently, MCR snagged the BT Tower in London, adding an international touch to its already chunky portfolio.

MCR isn’t just hotels, either. The company has its hands in property management tech, with systems like Stayntouch and Optii under its umbrella. These aren’t just back-office tools—they’re helping hotels run smoother and putting MCR on the map as an innovator. Not to mention the company keeps getting love from the likes of Travel + Leisure and Condé Nast Traveler.

Big Names, Big Investments, and a New Strategy in Luxury Hospitality

There’s a lot of money on the table in this deal, and it’s not just MCR writing checks. The private equity giant Apollo is pitching in about $700 million in a “hybrid capital” injection—a mix of debt and equity that gives Soho House some breathing room by helping pay off existing debts. It’s a safety net and a growth fund rolled into one.

On top of that, a fresh crew of strategic investors is joining the party. Tech star Ashton Kutcher is part of this group and will pick up a board seat once the deal wraps up. Kutcher has made a name for himself as an early backer of tech success stories, so it’s not a bad look for Soho House to have him in the boardroom. Current shareholders like Richard Caring, Nick Jones, and Goldman Sachs Alternatives are also sticking around—most of them will keep their shares or even invest more. Goldman Sachs, which has helped bankroll Soho House since 2021, is doubling down and says it’ll keep supporting the company’s new direction.

Of course, not everyone’s sticking around. Dan Loeb’s hedge fund Third Point is planning to sell. Loeb had previously raised concerns about earlier deals, calling them too favorable for insiders. But now, with more outside investors in the mix and the deal on the table, Third Point is finally heading for the exit.

This is more than just a financial shuffle. You’ve got one of America’s biggest hotel operators joining forces with a global members’ club brand. MCR brings a track record of running successful hotels and investing in tech, while Soho House has the cachet and devoted following in the luxury scene. If they play it right, this matchup could shake up how high-end hospitality works—giving clubs and hotels a shot at sharing their best ideas and loyal customers.