Soho House IPO: celebrities’ hangout hits the market
Soho House has filed for an initial public offering in New York that values the group at more than $3bn.


Soho House has filed for an initial public offering (IPO) in New York that is “expected to value the celebrity members’ club chain at more than $3bn”, says Dominic Walsh in The Times. The group will list under the name of the Membership Collective Group, reflecting the “variety of venues and services” it now offers.
These not only include the “twenty-eight Soho House members’ clubs and nine Soho Works workspaces”, but also “The Ned hotel and members’ club in London, the Scorpios beach club in Mykonos and Soho Home, an online platform that sells the products used in its properties”. Lockdowns “hit the company hard”, say Jack Sidders and Crystal Tse on Bloomberg. Sales fell from $642m in 2019 to $384m in 2020. While the firm has never been able to turn a profit, losses rose to $235m in 2020.
These losses have forced the company to borrow more money, with debt reaching $826m in April. Part of the money that it raises from any offering will be used to pay borrowings down. The group’s unprofitability is due chiefly to the frenetic pace of expansion, with the number of members growing by 16% each year between 2016 and 2020, say Alice Hancock and Matthew Rocco in the Financial Times.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
But with a waiting list of 48,000 people at the start of 2021, the club could now benefit from the rise of “digital nomads” who increasingly want to “work from anywhere” rather than return to the office. And the shares should profit from investors’ enthusiasm for travel and leisure stocks, which “has already benefited the likes of Hilton, Hyatt and Airbnb”.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
Friedrich Merz proposes 'radical' spending package for Germany
Germany's chancellor designate Friedrich Merz wants to scrap restraints on borrowing and allow for much higher defence spending
By Emily Hohler Published
-
Boots parent company Walgreens sold to private equity firm
US pharmacy giant Walgreens Boots Alliance is going private. Will the new owners sell off the high-street chemist?
By Dr Matthew Partridge Published
-
Why CEOs deserve a pay rise
Opinion The CEOs of big companies often come under fire for being grossly overpaid. But the truth, as per some economists, is the opposite. Do they merit a pay rise?
By Stuart Watkins Published
-
Rolls-Royce stock jumps 15% – could it climb further?
Aircraft-engine group Rolls-Royce’s CEO has been hailed as a hero for spearheading the firm’s recovery. And the future looks bright, says Matthew Partridge
By Dr Matthew Partridge Published
-
The power of private markets
Interview Helen Steers, co-manager of the Pantheon International investment trust, tells MoneyWeek about the vast array of compelling opportunities in private equity
By Andrew Van Sickle Published
-
Vertex Pharmaceuticals is an uncommon opportunity in rare diseases
Vertex Pharmaceuticals operates in a profitable subsector and is poised for further success
By Dr Mike Tubbs Published
-
Global investors have overlooked these top tips in emerging markets
Opinion Chris Tennant, co-portfolio manager of Fidelity Emerging Markets, picks three attractive companies in emerging markets
By Chris Tennant Published
-
King Coal has not been dethroned yet — should you buy?
The demand for coal is only growing, yet investors don’t seem to want to take advantage of the opportunity, says Rupert Hargreaves
By Rupert Hargreaves Published
-
It’s time to start buying Europe again, says Merryn Somerset Webb
Opinion Europe's stocks are cheap and the economic backdrop is starting to look cheerier, says Merryn Somerset Webb
By Merryn Somerset Webb Published
-
Prosus to buy Just Eat for €4.1 billion as takeaway boom fades
Food-delivery platform Just Eat has been gobbled up by a Dutch rival. Now there could be further consolidation in the sector
By Dr Matthew Partridge Published