Private club Soho House secretly files for IPO on New York Stock Exchange with value of over $3b

Soho House, the swanky private member’s club favored by A-listers the globe over, has taken a big step towards going public as it files for an IPO on the New York Stock Exchange with a value of more than $3billion.

The listing will provide a handsome windfall for founder Nick Jones as well as the company’s majority shareholder, California-based billionaire Ron Burkle and early investor, British businessman Richard Caring.  

The exclusive club with 27 locations from Hollywood to Hong Kong, Miami to Mumbai, submitted the filing for an initial public offering on the NYSE for a value at more than $3 billion, but some banking insiders believe it could rise as high as $4 billion, Sky News reported. 

Jones, who opened the first location in London’s Soho district in 1995, and is still the company CEO, owns just under 10% of the business, potentially netting him a $400 million payday.

Burkle, who purchased 1% from Jones in December 2020 to increase his holding to 60%, is in line a $2.4 billion payout, should the company hit the upper end of its valuation range. 

And Richard Caring, the British tycoon who bought into the company in 2008, could see upwards of $1 billion for his stake.

Soho House is a perennial favorite of the A-list celebrity set, with Gigi Hadid, Dua Lipa, Liam Hemsworth and Taylor Swift spotted at clubs over the years.

As well as access to venues it offers members discounted accommodation and workspaces. On the 10th anniversary of the opening of its New York venue in 2013, Mumford and Sons performed on the rooftop

The rooftop pool at Soho House New York offers dazzling views of the Financial District and One World Trade Center

Australian actor Liam Hemsworth is spotted leaving Soho House in New York’s Meatpacking District

As COVID-19 swept the globe, and lockdowns, travel restrictions and fears of contracting the virus saw the hospitality sector hit hard, Soho House cut 1,000 of its 8,000 workforce. 

Members pay roughly $1737 annually to join a single club, $3120 to access any club, plus a one-off registration fee of $680.

Its members have shown remarkable loyalty, with only about 10% of its 110,000 members canceling their membership.  

It chooses sites in trendy locations such as New York’s Meatpacking district, DUMBO in Brooklyn, and Notting Hill in London, and offers guests discounted accommodation, remote working, and discreet and relaxed settings – as well as legendary parties.  

Soho House was founded by Jones in England 1995 as a networking destination for ‘creatives’, and quickly became a favorite hangout for celebrities such as Liam Gallagher and model Kate Moss.

‘We wanted it to be creative and like-minded, and, for people who were at ease with themselves,’ Jones said in a 2017 interview. 

A Soho House membership is now seen as a coveted status symbol for jet-setting  international executives.

It quickly expanded to clubs elsewhere in London, and opened its first US club in New York in 2003.

In 2008, Jones sold an 80% stake in the club to British businessman Richard Caring for $144 million.

Soho House opened its club in New York’s Meatpacking District in 2003, and it soon became a favorite of A-listers

What began as a networking club for ‘creatives’, membership of Soho House is now the ultimate status symbol

Actors Marlon James and Daniel Kaluuya speak at a special screening of Queen & Slim at Soho House New York in November 12

Taylor Swift DJing at a party at Soho House’s London club in 2013. The exclusive club was opened in 2003, and members have shown remarkable loyalty during the COVID-19 pandemic, with only 10% canceling their memberships

Scott Disick and Kourtney Kardashian at Soho Beach House in Miami, 2013

The doors to Soho House in New York. The club prides itself on offering a discreet sanctuary to celebrities

Nick Jones, the founder of Soho House, could be in for a $400 million payday when it lists on the NYSE

Four years later in 2012, US billionaire Ron Burkle bought 50% of the company from Caring and Jones.

Since then, the company has ramped up its expansion plans, and began offering workspaces and health products under its lifestyle brand Cowshed. 

In 2010, it opened its first Los Angeles club, and immediately became a celebrity spotters paradise.

The Hollywood Reporter called it ‘the most important club in Hollywood — a high-wattage magnet for A-listers and dealmakers’, in 2015.

It has plans to open new clubs in Austin, Texas, and a fourth London club on The Strand.

The company was linked to a public listing in 2018. However the owners decided to raise capital privately from real estate trust Simon Property Group and Raycliff Capital.

The business was then valued at $2 billion. 

The IPO has been conducted in strict secrecy so far.  

Soho House had not responded to a request for comment about the IPO at the time of publication.

A source told the that members have not been offered the chance to purchase shares ahead of the public listing. 

As companies navigate the post-pandemic climate, one analyst says the members-only model will appeal.

‘More and more companies and groups are very eager to explore and expand the membership concept,’ Gilda Perez-Alvarado, global CEO of JLL Hotels & Hospitality told 

‘It’s all been fueled by the pandemic and how that has impacted how we live, work, and play,’ she said.

Last December, Burkle bought Michael Jackson’s infamous Neverland ranch for $22m, a fraction of its original asking price of $100m. 

Source link
Exit mobile version