Soho House Raises US$100m to Fund Expansion Around Globe

Main Photo: The Soho House club, Mykonos, Greece – opening 2020

Date: November 2019

Location: 27 Clubs/House globally

Name: Soho House Houses

No. of Keys: TBA

Capital Provided By: Private club and hotels owner Soho House has raised US$100m (£78m) to help fund its expansion around the globe. The investment came from US firms Raycliff Capital and Simon Property Group in exchange for a 5 per cent stake, valuing the company at close to £1.6 billion.

Owner: The London-based business, which was founded by Nick Jones, said the cash would help it nearly double its footprint to 50 venues within four years. Nick owns 10% equity, with Britain’s Richard Caring and US Ron Burkle owning the balance.

Soho House also revealed its annual losses widened from £60m to £65m in 2018, due to investment in its ambitious growth plans.

Revenues rose by 20% to £432.5m, boosted by rising food and drink sales and the addition of more than 20,000 members – taking the total to about 89,000 worldwide.

The company runs private members clubs for those who work in the arts and the media, with a pass to all clubs – or houses – costing £1,700 per year. Jones said: ‘We are happy with the loss. At the moment it is all about expanding and opening more houses.’

THPT Comment: Little that Nick Jones and his fellow shareholders can do with Soho House, who has truly invented a whole concept in Hospitality…well done thus far and we are sure the success will continue.

First Seen: This is Money

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