Soho House with $100m fundraising joins $2bn price club

Soho House, the hotel and members’ club chain, has been valued at $2bn after raising $100m  to help double its global footprint to 50 venues over the next four years.

Nick Jones, founder and CEO said, “Expansion is definitely ramping up. We have the infrastructure to do it and we have the appetite People love a house in their city”.

The group failed to turn a profit and fears that was taking too much debt to broaden the business. In 2017, it signed a £275m refinancing agreement with Permira Debt Management, and by the end of last year the company’s debt had grown by over a fifth year to £417m.

According to Peter McPhee, CFO, Soho House made a pre-tax loss of £65m last year, up from £60m in 2017. It also reported adjusted earnings before interest, tax, depreciation and amortisation of $56.4m up from 50.5m a year earlier. However, turnover rose 20 per cent to £452m, he added.

 The company which launched in London in 1995, secure the investment  form Simon Property Group, the real estate investment trust, and Raycliff Capital, founded by Bippy Siegal, the entrepreneur, for a 5 per cent stake, valuing the company at $2bn. Soho House’s membership climbed  29 per cent to 89, 000 last year, as further 36, 000 are waiting to join what Soho House describes as a private members’ club or those with  a “creative soul”.

Prince Harry and Meghan attended the opening of Soho House in Amsterdam. The UK fees range from £850 to £1, 700. New venues are set to open in Paris, Rome, Tel Aviv, Mykonos and Nashville.