UK Markets open in 5 hrs 8 mins

Soho House secures $100m to expand its private members’ clubs empire

Soho House press image: Nick Jones
Soho House press image: Nick Jones

Soho House on Monday shrugged off deeper losses and said it has secured $100 million (£77.9 million) of funding from US property investors to expand its private members’ clubs empire.

The operator of 26 clubs has sold a circa 5% stake to a group led by New York-based entrepreneur Bippy Siegal’s Raycliff Capital, including a significant investment from malls landlord Simon Property Group.

Founder Nick Jones, restaurateur Richard Caring and American billionaire Ron Burkle remain the majority owners of Soho House, which is now valued at $2 billion.

Jones had looked at a New York float in recent years, but he today told the Evening Standard: “It’s not on the horizon at the moment.”

The new funds will help aid growth plans. The company plans to open new sites in 2020 and 2021, including in London, Paris and Mykonos.

Chief commercial officer Andrew Carnie, who joined this year from US retailer Anthropologie, will also lead Soho House’s push to launch more ‘Soho Works’ venues. They have office and events space entrepreneurs and startups can use.

The firm also wants to invest in digital further.

Soho House recorded a statutory pre-tax loss of £65 million in 2018, widened from a £60 million loss a year earlier. That was due to expansion costs. Underlying profits rose to £56.4 million from £50.5 million.

Turnover leapt 20% to £432.5 million and comparable sales increased 9%.

Jones said: "2018 was an extremely busy year for Soho House as we continued to expand our global membership across the world. New openings at White City, Dumbo in NYC and Amsterdam, together with our first House in Asia with Soho House Mumbai, have helped to grow our member base as well as offering more options for existing members."

Read more

Meet Nick Jones: The pot washer turned Soho House clubs tycoon