Soho House’s £1.3bn takeover revived after funding scramble

A $1.8bn (£1.3bn) takeover of Soho House by the entrepreneur planning to transform the BT Tower has been revived following a funding scramble.Soho House, which is listed on the New York Stock Exchange, has secured a new $200m funding commitment that will allow it to close a take-private deal with US hotel giant MCR Hotels.Under the revised terms, Morse Ventures, an entity owned by MCR boss Tyler Morse, will commit $50m, while MCR will commit a further $50m.Soho House has extended its debt facilities with private equity firm Apollo and Goldman Sachs from $150m to $220m, while Apollo will reduce its equity commitments.Major shareholders including restaurateur Richard Caring have also agreed to roll over their stakes, reducing the amount of funding required for the deal by $50m.The revised arrangements come a week after MCR, which owns the 1960s-themed TWA Hotel at JFK Airport and BT Tower in London, said it was unable to stump up the $200m it had promised for the deal.The shock announcement threatened to scupper the long-awaited takeover of Soho House and sent shares tumbling. The company’s stock price bounced back after the new funding arrangement was confirmed.The private member’s club, which was launched from a single venue on Greek Street in 1995, first announced in August that it would end its tumultuous time on the stock market after agreeing to be taken private by a consortium led by MCR.The actor Ashton Kutcher is also investing in the deal while Soho House founder Nick Jones and billionaire executive chairman Ron Burkle are rolling over their stakes.The $9-per-share deal marked an 83pc premium on the company’s share price. However, the sum was a far cry from the $13 reached when it floated in New York in July 2021.The takeover is the latest deal struck by Mr Morse, a former ski instructor and baggage handler turned hotel tycoon.MCR struck a £275m deal to buy the BT Tower in 2024, paving the way for the conversion of the Grade II-listed, 177-metre landmark into a hotel designed by architect Thomas Heatherwick.Over three decades Soho House has grown into a sprawling empire with a network of 46 clubs around the world.But its expansion came with growing pains as members complained that venues were becoming overcrowded and had lost their feeling of exclusivity.Soho House responded by temporarily halting applications for memberships at its clubs in London, New York and Los Angeles.It has since started accepting new members again and has opened new venues including Soho Mews House and Soho Farmhouse Ibiza.