Soho House has reported a sharp rise in profits after capping new memberships in London, New York and Los Angeles to address overcrowding concerns, with billionaire chairman Ron Burkle reviving plans to take the business private.
The London-founded members’ club posted an operating profit of just under $60 million (£44.6 million) in the three months to July, up from $35 million in the previous quarter. It marks the first time in the group’s three-decade history that it has achieved consecutive quarterly profits.
Revenues rose 9% to $330 million, driven by growth in membership numbers and in-house sales such as food and drink. Membership now exceeds 270,000 – a 2.2% year-on-year increase – while the waiting list is at a record high.
Chief executive Andrew Carnie has slowed the group’s rapid expansion, temporarily closing applications in key cities last year before reopening them in recent months. The focus has shifted to refurbishing existing clubs, enhancing food and beverage offerings, expanding wellness facilities, and curating new cultural and experiential events.
Recent initiatives include the launch of Soho Health Clubs with advanced wellness technology, pop-up hospitality suites at Formula 1 races, and new food residencies. The group has also opened new venues, such as Soho Mews House and Soho Farmhouse Ibiza, bringing its global portfolio to 46 clubs.
The profit rise comes as Mr Burkle renews efforts to take Soho House off the stock market. In December, he and a consortium offered $9 per share, valuing the company at almost $1.8 billion. Soho House’s market valuation currently sits at just under $1.3 billion, down nearly 50% since its New York listing in 2021.
The company has formed a special committee to assess the bid but has cautioned that there is no guarantee a deal will proceed. Burkle, who acquired a majority stake from restaurateur Richard Caring in 2012, argues the market has undervalued the business.
Soho House has also faced criticism from short-seller GlassHouse, which last year likened it to failed co-working firm WeWork and accused it of poor accounting practices – claims the company has strongly rejected.
Carnie said the second quarter results “reflect the continued strength of the Soho House membership model and the real progress we’ve made in transforming the business”.
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Soho House profits surge as membership limits boost exclusivity amid privatisation talks