MCR Hotels Acquires Soho House in $2.7 Billion Private Deal
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Key Takeaways
- Strategic acquisition: MCR Hotels agreed to acquire Soho House in a $2.7 billion deal, offering shareholders $9 per share in cash—an 83% premium over December 2024 levels
- Premium hospitality positioning: The deal combines MCR's operational expertise with Soho House's distinctive brand, targeting sustainable international growth while protecting the member experience
- Notable investors joining: Ashton Kutcher will join the board of directors once the deal closes, bringing tech investment experience to the luxury hospitality brand
- Financial recovery story: Soho House recently posted its third straight quarterly profit after years of unprofitability since its 1995 founding
The acquisition represents a significant consolidation move in the luxury hospitality sector, bringing together MCR Hotels, the third-largest hotel owner-operator in the United States, with Soho House's portfolio of 46 exclusive membership clubs worldwide.
The transaction is financed through $845 million in debt and company cash, with Apollo Global Management providing hybrid capital financing. Ron Burkle retains his controlling stake while MCR CEO Tyler Morse becomes vice chairman, ensuring continuity in leadership during the transition to private ownership.
The timing of this deal is particularly noteworthy given Soho House's recent financial turnaround. The company reported 8.9% revenue growth to $329.8 million in Q2 2025, with adjusted EBITDA increasing 46.3% to $46.1 million and membership growing 4.7% to 213,621 members.
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