MCR Hotels Goes Big with Soho House Acquisition
Here's a move that sent waves through the hospitality world: MCR Hotels, already holding the title as America's third-largest hotel owner-operator, just dropped $2.7 billion to take Soho House & Co Inc. private. That isn't just another property purchase—it's a full-on shakeup. MCR and Soho House serve very different crowds, but bringing them under one roof means MCR is stepping way beyond just rooms and restaurants.
This deal values Soho House shares at $9 each, folding one of the world’s glitziest—yet hard to join—members’ clubs into the MCR lineup. You get the sense that MCR, with its deep U.S. roots, now wants to play at a bigger table, reaching members all the way from London to Hong Kong.
Celebrity Investors and Strategic Partners Join the Board
It’s not just corporate suits calling the shots here. Ashton Kutcher, better known for his movies and smart tech investments, isn’t just putting cash in—he’s snagging a seat on the Soho House board. He joins a handful of powerful players. Apollo’s funds are kicking in huge, blending debt and equity for what insiders call a hybrid capital fix. That money will wipe out old debts and set Soho House up for a cleaner slate.
Meanwhile, old hands like Richard Caring and Nick Jones, plus Goldman Sachs Alternatives, aren’t just cashing out. They’re rolling much of their stake into the new setup. Goldman Sachs, around since 2021 in this game, is even doubling down with more capital. Over on the sidelines, Ron Burkle’s Yucaipa Cos. is sticking around as a major backer, while Apollo itself shells out about $700 million in this fresh deal.
Not everyone’s hanging on, though. Third Point, run by Dan Loeb, is out. They had beef with Ron Burkle’s earlier deal, calling it too cushy, so this time they’re bowing out while the game changes hands.
MCR Hotels is hardly a stranger to iconic properties. Think the TWA Hotel at JFK, Gramercy Park, and The High Line Hotel in New York. They’ve also staked a claim to the BT Tower in London. Beyond beds and minibars, MCR runs sleek, cloud-based software for hotel management—tools like Stayntouch and Optii. That signals a company that isn’t afraid to tweak how hospitality does business, a fact not lost on industry judges who’ve handed them plenty of nods from Travel + Leisure and Condé Nast Traveler, plus a spot on Fast Company’s top travel innovators list.
This merger isn’t just about scale. It’s a remix of Soho House’s exclusive club culture with MCR’s ironclad operating chops and tech smarts. Now, the plan is to use MCR’s systems and muscle to supercharge Soho House’s growth, opening up access to the premium social scene from the U.S. to growing markets in Asia and well beyond.
As moving parts settle, the deal stands out not just for its size, but for how it brings together unlikely allies: hoteliers, investment bankers, Hollywood types, and tech pros. All eyes are now on what comes next as this new hospitality powerhouse shapes the future of high-end travel and private club life.