London, England — Soho House, the upscale private members’ club chain, has been acquired for $2.7 billion by a consortium that includes actor and venture capitalist Ashton Kutcher. The deal marks a significant shift for the brand, which has expanded globally since its inception in 1995 but has faced challenges since its public listing in 2021.

Established by Nick Jones, Soho House began with its first location in London’s Greek Street, above his restaurant, Café Boheme. It now boasts 46 venues across Europe, North America, and Asia, catering to an elite clientele that includes celebrities and high-profile figures like the Duke and Duchess of Sussex. The club is known for its luxurious ambiance and a membership structure designed for creative professionals looking to connect and collaborate.

However, since going public, Soho House has struggled with profitability. The share price has fallen significantly from its high of $14.21 in August 2021. The newly agreed purchase price of $9 per share represents an 18% increase over its most recent closing price but reflects an ongoing decline in value. This shift toward private ownership aims to restore the brand’s original allure, which many perceive as diminished after rapid expansion.

The consortium acquiring Soho House is led by MCR Hotels, a major player in the U.S. hotel industry whose portfolio includes iconic properties like the TWA Hotel at New York’s JFK Airport. The deal also involves private equity firm Apollo, which is facilitating the transition back to private ownership. Tyler Morse, CEO of MCR, and Kutcher will join the board of directors, signaling a new strategy for revitalizing the brand. Morse expressed excitement for the journey ahead, emphasizing the goal of expanding Soho House with new locations.

Despite the involvement of notable figures, industry experts warn that significant challenges remain. Susannah Streeter, a market analyst, pointed out that while having a celebrity like Kutcher on the board may create buzz, the real work lies in restructuring the business for long-term viability. Concerns have been raised about the company’s rapid growth, which some believe has diluted the exclusivity that originally attracted members willing to pay substantial membership fees.

Additionally, the club’s evolving membership policy has sparked discontent among some loyal patrons who feel that the brand has drifted from its roots as a haven for creatives. Saxon Moseley, an industry specialist, noted that a quarter-to-quarter reporting requirement for publicly traded companies might not align well with Soho House’s long-term investment model, which relies on significant upfront costs and member retention.

The prospect of returning to private status presents both an opportunity and a challenge for Soho House. Andrew Carnie, the company’s CEO, expressed confidence in the direction the business is heading, asserting that the focus would be on building a stronger, more resilient Soho House. As the company embarks on this new chapter with plans for further expansion, the future remains uncertain but promising for the storied club.