Nick Jones, the founder of Soho House, in the club’s new Barcelona location
Soho House, which built its brand on exclusivity, could soon become a public company.
The club is considering a $2 billion initial public offering, although this valuation seems extremely pricey, given the indebtedness of the firm and its goal of putting a club in every trendy location across the globe, according to Bloomberg.
The company is putting money into new locations and renovations, and it has roughly 18 outlets across the globe in locations ranging from New York City to Mumbai. Its new venue in London called “the Ned,” which is geared toward bankers, has been a success, although its branch in the United Kingdom lost money in 2016, and its expansion plans could risk diluting the brand.
Nick Jones founded Soho House in 1995 in the London neighborhood that shares its name.
In New York, financial backer and company chairman Ron Burkle paid $67 million to buy the office portion of 29 Ninth Avenue, which Soho House was leasing in the Meatpacking District (he later sold the office portion, but locked Soho House into favorable lease terms). Soho House also opened a location at 139 Ludlow Street on the Lower East Side, and plans to bring a restaurant location to Empire Stores in DUMBO.
In Miami, Soho House spent $39 million in 2008 to acquire the former Sovereign Hotel in South Beach and then completed a $33 million renovation of the property. The owners scored a $55 million refinancing in 2014. The club also has a location in West Hollywood.
A profile of the company in 2017 by The Real Deal examined its efforts to simultaneously add several new members through expansion and maintain its aura of exclusivity. [Bloomberg] – Eddie Small
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