Soho House confirms intention to float on New York Stock Exchange
Private members' club Soho House has confirmed its intention to float on the New York Stock Exchange as the Membership Collective Group.
In a letter to members, founder and chief executive Nick Jones (pictured) said the group would continue to open properties across the world and launch new types of membership that can be scaled globally.
He said: "As we ready ourselves to take the step of becoming a public company, our commitment to putting members at the heart of everything we do remains steadfast. This move will enable us to accelerate our investment in improving our members' physical and digital experiences, always taking a long-term view on what is right for them and their membership.
"As we grow, the value of our membership grows as members access new spaces, new communities, new connections, new content and new experiences. There is so much opportunity for growth, and this IPO means we can share this journey with our members, our teams and our new investors."
From opening a private members' club in London's Soho in 1995, Jones has gone on to create a global phenomenon with the business and was named 2015 Hotelier of the Year. The group's 28 properties include Babington House in Somerset, Soho Farmhouse in Oxfordshire and the Ned in London.
Over the years, Jones has sold shares in Soho House & Co to fund expansion. American billionaire businessman Burkle is believed to own a stake of approximately 60%, acquired for £250m in 2012, while 30% is held by restaurateur Richard Caring and Jones holds the remaining 10%. The entire group has more than 119,000 members, including over 111,300 Soho House members, and has been expected to float for years.
For the 2020 financial year, Soho House had total revenues of $384m (£276m), a net loss of $235m (£169m) and negative earnings before interest, tax, depreciation and amortisation (EBITDA) of $44m (£32m). Although its membership for the year was hit by the pandemic, it reported a retention rate of 92%.
The group's pipeline includes opening 18 new Houses by the end of 2023, with plans to expand in cities such as Tel Aviv, Paris, Rome and Austin. It also said it sees "substantial long-term growth opportunities" in the Asia Pacific, Africa and South America regions, with a long-term growth target of three to five Soho House openings per year. Most of the Houses it plans to open over the next three years pursue its new asset-light strategy.
Its expansion also includes growth of the Ned brand, with a new site identified for opening by the end of 2021 another by the end of next year and plans to open one or two new Neds annually.
