Goldman Sachs is placing a big bet on the growth of Soho House, one of the world’s biggest private members’ club networks, with a $770 million loan as it prepares to go public in New York, SkyNews first reported. The new financing replace existing debt facilities with Permira Debt Managers (PDM), part of which had been syndicated to the wealthy Reuben brothers.
Backdrop: Just last week, Soho House — the London-based group of posh private clubs — confidentially submitted an S-1 filing for its IPO, which could value the company at as much as $4billion. The company runs 27 clubs in 10 countries, including three in New York City, along with event venues and a group of co-working spaces dubbed Soho Works.
Membership: The chain’s business has reportedly held up through the pandemic. Just about 10,000 of its 110,000 members canceled their memberships even as the coronavirus shuttered its venues. Soho House is mostly owned by Ron Burkle, Skift noted.
Positioned for post-pandemic world: Membership clubs like Soho House also stand to see gains in the recovery with more people working remotely and wanting a more exclusive working environment than an office or typical co-working space.
Be Smart: The potential public listing also comes amid growing expectations that luxury travel demand will snap back quickly from the catastrophic decline in performance during the pandemic. Branded luxury hotels in the U.S. performed the best of all market segments in recent weeks. [SkyNews+Skift+FT]