Soho House has secured new funding for its go-private deal with MCR Hotels, after the investor failed to meet its $200 million funding commitment, according to a Jan. 14 filing with the U.S. Securities and Exchange Commission.
Soho House & Co. said it had entered into a new $50 million equity commitment with Morse Ventures, which is owned by MCR Hotels Chairman and CEO Tyler Morse, per the 8-K filing. In addition, MCR will be committing $50 million in equity under its original agreement, for a total of $100 million in equity commitments.
Soho House said in the filing that it planned to make up the remaining funds through a combination of increased unsecured note facilities, reduced equity commitments and an amended rollover stock agreement, totaling approximately $200 million in alternative commitments to fund the closing of the merger in full. The company expects to close the merger by late January.
In August, Morse said the merger represented a strategic opportunity to combine MCR’s operational expertise with “one of the most distinctive brands in hospitality.”
Soho House first opened in 1995 and went public in 2021. It now has nearly 50 international locations, per its website.
Founded in 2006, MCR oversees a $5 billion portfolio of 150 hotels including Sheraton New York Times Square, The High Line Hotel and The Gramercy Park Hotel in New York. It’s the third largest hotel owner-operator in the U.S., with more than 25,000 guest rooms in 37 states and 107 cities, per its website.
