Soho House: Membership Waitlist Grows as Short Seller Targets Reach New Highs

March 15, 2024

Soho House, renowned for its exclusivity as a private members club, has disclosed a significant loss of $57 million (£44 million) in the fourth quarter. Despite this financial setback, the club reported that its waitlist has surged to another all-time high.

On a per-share basis, the publicly listed company revealed a loss of $0.29 cents (£0.23). Moreover, its net debt has expanded to £638 million (£500 million), marking a substantial increase from £531 million (£417 million).
However, amidst these financial challenges, Soho House managed to achieve adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $36.6 million (£28.7 million). This represents a notable increase of $13.4 million (£10 million) compared to the fourth quarter of 2022.

The club’s membership has also seen growth, with Soho House Members reaching 193,865, up from 184,542 in the third quarter of 2023, reflecting a 19.7% year-over-year increase. Meanwhile, the waitlist for membership, which commands an annual fee upwards of £1,000, has surged to approximately 99,000, reaching an all-time high.

Despite the financial challenges, Soho House has expanded its presence by opening new establishments in various locations, including Mexico City and Portland, adding to its network of leisure and networking clubs.

Andrew Carnie, Chief Executive Officer of Soho House & Co, expressed confidence in the club’s performance, stating, “The strong results we delivered in 2023 demonstrate our continued focus on driving a better member experience and significant progress on improving profitability. We grew Soho House membership approximately 20%, including the benefit of maturing Houses and entering into South East Asia and Latin America for the first time.”