Soho House receives £1.4b takeover bid

Soho House has received a takeover offer from an unnamed consortium for £1.4b.

 

The potential buyout, which would represent a value of $9 (£7.20) per share, comes after Soho House rejected an offer in May that it said undervalued the company. 

 

Majority shareholder Ron Burkle supports the bid, which would see him roll his share into the private entity. Soho House said it was considering the bid and would make no further statement until its review was concluded.

 

In its third quarter results the business said revenue for the three months to 29 September was up 13.6% year-on-year at £266m, with revenue per available room 5% up on a like-for-like basis. Overall membership also grew to 267,494 from 264,540.

 

Chief executive Andrew Carnie said: “Our third quarter results reflect the strength of our membership model. Membership revenues grew 17% year-on-year, while we achieved our highest ever quarterly total revenues and adjusted earnings before interest, taxes, depreciation and amortisation.

 

“At the end of the period, we opened Soho Mews House in London, our 45th house, with great feedback from members. We have continued to see significant demand for other recent openings, including Sao Paulo, Mexico City and Portland.

 

"Despite a choppy consumer environment, our long-term strategic focus on operational excellence and delivering the best member experience continues to drive improved performance.”

 

Photo: ©Kettner’s, Soho House