Private club Soho House secretly files for IPO on New York Stock Exchange valued at over $ 3 billion
Soho House, the chic private club favored by A-listers around the world, has taken a big step to go public as it signs up for an IPO on the New York Stock Exchange worth over $ 3 billion.
The listing will be a nice 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, from Miami to Mumbai, has filed for an IPO on the NYSE worth more than $ 3 billion, but some banking insiders think it could go up to $ 4 billion. Sky News reported.
Jones, who opened the first location in London’s Soho district in 1995 and is still the company’s CEO, owns just under 10% of the company, potentially earning him a $ 400 million in benefits.
Burkle, which bought 1% of Jones in December 2020 to increase its stake to 60%, is lining up for a $ 2.4 billion payout should the company hit the top of its valuation range.
And Richard Caring, the British tycoon who bought into the company in 2008, could see more than $ 1 billion for his share.
Soho House is a perennial A-list celebrity favorite, with Gigi Hadid, Dua Lipa, Liam Hemsworth and Taylor Swift spotted in clubs over the years.
In addition to access to locations, it offers members accommodation and workplaces at a discount. On the 10th anniversary of the New York venue opening in 2013, Mumford and Sons performed on the rooftop
The rooftop pool at Soho House New York offers stunning views of the Financial District and the One World Trade Center
Australian actor Liam Hemsworth is spotted leaving Soho House in New York’s Meatpacking District
As COVID-19 took the world by storm and the hospitality industry was hit hard by lockdowns, travel restrictions and fears of contracting the virus, Soho House is scrapping 1,000 of its 8,000 employees.
Members pay approximately $ 1,737 annually to join a single club, $ 3,120 to access each, plus a one-time registration fee of $ 680.
Its members have shown remarkable loyalty, with only about 10% of the 110,000 members canceling their membership.
It chooses venues in trendy locations such as New York’s Meatpacking district, Brooklyn’s DUMBO and London’s Notting Hill, offering guests discounted accommodation, remote working, and a discreet and relaxed environment – as well as legendary parties.
Founded by Jones in England in 1995 as a networking destination for ‘creatives’, Soho House quickly became a favorite hangout for celebrities like Liam Gallagher and model Kate Moss.
“We wanted it to be creative and like-minded, and for people who were comfortable,” Jones said in a 2017 interview.
Membership in Soho House is now seen as a coveted status symbol for jet-setting international executives.
It quickly expanded to clubs elsewhere in London, opening its first American 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 quickly became a favorite of A-listers
What started as a networking club for ‘creatives’, membership in 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 on Nov. 12.
Taylor Swift DJ at a party at the London club of Soho House in 2013. The exclusive club opened in 2003 and members have shown remarkable loyalty during the COVID-19 pandemic, with only 10% canceling their membership.
Scott Disick and Kourtney Kardashian at Soho Beach House in Miami, 2013
The doors of Soho House in New York. The club prides itself on providing a discreet haven for celebrities
Nick Jones, the founder of Soho House, could get a benefit of $ 400 million when listed on the NYSE
Four years later, in 2012, American billionaire Ron Burkle bought 50% of the Caring and Jones business.
Since then, the company has stepped up its expansion plans and began offering workplaces and health products under the Cowshed lifestyle brand.
In 2010 it opened its first club in Los Angeles and instantly became a celebrity spotters paradise.
The Hollywood Reporter in 2015 called it ‘the premier club in Hollywood – a high wattage magnet for top players and deal makers’.
It has plans to open new clubs in Austin, Texas, and a fourth club in London on The Strand.
The company was publicly listed in 2018. However, the owners decided to raise private capital from the Simon Property Group and Raycliff Capital real estate branches.
The company was then valued at $ 2 billion.
The IPO has so far been kept strictly confidential.
Soho House had not responded to a request for comment on the IPO at the time of publication.
A source told DailyMail.com that members were not given the opportunity to purchase stock prior to the public listing.
As companies navigate the post-pandemic climate, one analyst says the member-only model will be to the liking.
“More and more companies and groups are eager to explore and expand the membership concept,” said Gilda Perez-Alvarado, global CEO of JLL Hotels & Hospitality. Skift.com
“It’s all been fueled by the pandemic and how that has affected the way we live, work and play,” she said.
Last December, Burkle bought Michael Jackson’s infamous Neverland ranch for $ 22 million, a fraction of its original $ 100 million asking price.