Fri 15th Mar 2024 - Soho House doubles Ebitda as it narrows losses, UK membership shoots up 46% in two years Soho House doubles Ebitda as it narrows losses, UK membership shoots up 46% in two years: Members’ club group Soho House has reported it doubled adjusted Ebitda in 2023 as it made “significant progress” on improving profitability with losses narrowing by more than $100m. Last month, the company revealed its biggest shareholders were weighing taking the New York-listed company private, in a response to a report published by short seller GlassHouse criticising the group, but there was no update on that position as Soho House published its full-year results. The number of UK members has increased by more than 22,000 in the last two years, an increase of 46%. The numbers as of 31 December 2023 stood at 70,865, up from 48,575 in January 2022. The number of houses in the UK in the period increased from 11 to 13. It comes as the business, which operates 43 houses globally, reported total revenue increased 16.8% year-on-year to $1,135.9m in the year ending 31 December 2023. Membership revenue of $361.5m increased 32.5% year-on-year, accounting for 31.8% of total revenue, while in-house revenue grew to $482.1m, up 13% year-on-year. Adjusted Ebitda was $128m, up from $60.7m the previous year. Revpar was 11% higher year-on-year on a like-for-like basis. Net loss attributable to Soho House & Co was $118.0m, or $0.60 per share, inclusive of the same impairment charge outlined to Soho Works North America (2022: net loss of $220m). During the year, the business opened two new houses – Bangkok in February 2023 and Mexico City in September 2023. Looking ahead to FY2024, the. Business expects revenue of between $1,200m and $1,250m and adjusted Ebitda of between $155m and $165m. Total membership is expected to grow to in excess of 210,000. Chief executive Andrew Carnie said: “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. We more than doubled adjusted Ebitda, reflecting 11% margins up from 6% in 2022. We are excited for the year ahead. I would like to thank our teams globally for their commitment and hard work, and our members for their enduring loyalty over nearly 30 years.” Its fourth quarter results showed total revenue of $290.8m, with 7.5% year-on-year growth. Membership revenue of $95.8m increased 24.2% year-on-year, accounting for 32.9% of total revenue, while in-house revenue grew to $125.2m, up 3.8% year-on-year. Adjusted Ebitda was $36.6m, up $13.4m on the previous year. Net loss attributable to Soho House & Co was $57.0m or $0.29 per share, inclusive of a $47m impairment charge predominantly related to Soho Works North America. Total members in the fourth quarter grew to 259,884 from 255,252 in the third quarter 2023 and by 14.6% year-on-year while Soho House members grew to 193,865 from 184,542 in third quarter 2023, and 19.7% year-on-year. Membership waitlist sits at an all-time high of about 99,000. Revpar was 4% higher year-on-year on a like-for-like basis. The business opened Soho House Portland this month and is expected to open Soho House Sao Paulo soon. Soho House features in the Who’s Who of UK Hospitality, which is one of six databases exclusive to Premium Club members. The latest edition was sent to Premium Club members today (Friday, 15 March) and feature 866 companies. There was 36 updated entries and 11 new companies. The companies, listed in alphabetical order, have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Email kai.kirkman@propelinfo.com today to sign up.