NEW YORK CITY, New York: Exclusive members club operator Soho House will leave the stock market in a US$2.7 billion deal led by New York-based MCR Hotels, after years of financial struggles eroded nearly half its value since its 2021 IPO.

Shareholders will receive $9 per share, a 17.8 percent premium to the last closing price. Soho House stock jumped more than 15 percent on the news, trading around $8.80 in early afternoon on August 18.

As part of the restructuring, actor and tech investor Ashton Kutcher will join the company's board. Hospitality veteran Neil Thomson will step in as chief financial officer, succeeding Thomas Allen immediately.

Founded in London in 1995 by restaurateur Nick Jones, Soho House grew from a single site above Cafe Boheme into a global network of clubs across Europe, North America, and Asia. However, despite rising membership and revenue, the company has struggled to turn a profit, prompting it to consider going private less than three years after its New York listing.

Analysts say the business faces challenges beyond celebrity endorsements. "Soho House will need a bit more than celebrity stardust to cement its long-term future," said Susannah Streeter of Hargreaves Lansdown, pointing to rapid expansion that risks diluting exclusivity and consumer pullbacks in hospitality spending.

Investor Daniel Loeb, whose Third Point hedge fund holds nearly 10 percent of Soho, welcomed the move. "As both a shareholder and Soho House member, I support this transaction and am pleased to see management of the club in good hands," he told Reuters.

Under the deal, MCR Hotels will acquire the publicly traded shares, while founder Nick Jones and Executive Chairman Ron Burkle's Yucaipa investment firm will retain majority control. Together, Jones and Burkle already own about three-quarters of the company.

Apollo Global Management is supporting the transaction by providing about $850 million in hybrid capital financing, a mix of debt and equity.