Hotel and private members club Soho House reported a strong second quarter for 2024, as it grew memberships and continued to advance plans for more international properties.
Membership revenues grew 16% year on year, as Soho House member numbers rose to 204,000. The company said its global waiting list of potential members also grew, up to 111,000.
A growing membership
Adjusted ebitda grew to USD33m, but the company declared a loss as it continues to invest in growing and launching new sites. New openings during 2024 will cost the group around USD4m in losses, as they ramp up after launch.
“We are really pleased with the membership demand we are seeing in our new markets and ramp-up houses, which gives us the confidence to raise our financial guidance today on total membership and membership revenue,” said CEO Andrew Carnie.
Recent openings included a new Soho House in Sao Paulo, the first opening for the company in South America, plus additions in Mexico City and Portland, USA.
In the last year, the Soho House business has been under scrutiny for its strategy, as it continued to grow while failing to deliver profits. Short seller Glasshouse Research published a highly critical report on the US-listed company in February 2024. However, the group continues to enjoy the support of major investors in the business, including Ron Burkle, who is executive chairman of Soho House. In June 2024, the company turned down a takeover bid that would have taken the business private, declaring the offer as significantly undervaluing the Soho House opportunity.
The current Soho House development pipeline includes Soho House Charleston, scheduled to open before the year end, and Manchester, where club facilities and 23 bedrooms will be set within the development of the city’s Granada Studios.
Also coming in Europe will be Soho House Milan. Reviving a six storey 1930s building, formerly Cinema Arti, the redevelopment will include a gym, rooftop terrace, pool, club space and more than 50 bedrooms. And in Madrid’s Chueca neighbourhood a combination of old and new buildings will be combined around a linking courtyard for the city’s Soho House.
Signature rooftop bars
In Tokyo, a new Soho House is being planned for the city’s Aoyama district, nestling among independent boutiques and galleries. The site will have 42 bedrooms, club space and rooftop pool and terrace.
Adding to the portfolio are two Pool House projects, one due to launch before the end of 2024 in Miami, and a second site in Barcelona.
Looking further ahead, a larger, 200 room Soho House is in planning for a site in central Sydney, Australia. And, testing the appetite of Soho House members for a more rural retreat, the group is planning Grasmere House, the reimagining of a former working farm in Rhinebeck, New York. A historic manor house surrounded by other nineteenth century buildings will be reused to create a great place to stay, with hiking, cycling and wellness facilities right on the doorstep.
