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Mon 18th Aug 2025 - Update: Soho House set for $1.8bn take private deal, Brakspear, pub closures, tourist tax |
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Soho House close to $1.8bn take-private deal: Members’ club group Soho House is set to be taken private in a deal led by one of the biggest US hotel owners. The Wall Street Journal reports that a group of investors headed by New York-based MCR Hotels, which owns 30,000 guest rooms across the US, is nearing an agreement to buy out Soho House’s remaining public shareholders at about $9 a share, according to people familiar with the matter. The take-private offer values the company at roughly $1.8bn (£1.3bn), excluding debt, and hands investors a premium over Friday’s $7.60 close – though still well shy of the $14 price tag when Soho House floated in 2021. A deal could be announced as early as this week. Ron Burkle, the club’s billionaire backer who has long controlled the group, will roll over his stake along with other existing investors. Apollo Global Management, the investment firm and backer of The Restaurant Group, is expected to provide more than $800m in debt and equity financing. The deal would draw a line under months of agitation by activist Dan Loeb. His Third Point hedge fund had pressed the board to seek outside suitors to secure a higher valuation. Last year, New York short seller GlassHouse slammed what it called a “broken business model and terrible accounting”, claiming the group’s expansion into less affluent cities betrayed its brand and masked the fact it had never turned a profit in its 28-year history. Management hit back with an independent review that, it said, found “no material issues” in the company’s books. Earlier this month, the business reported a return to profit in its second quarter with adjusted Ebitda up 46%. It reported net profit of $24,885,000 for the 13 weeks to 29 June 2025 compared with a loss of $33,205,000 the year before. Adjusted Ebitda grew 46% to $46,130,000 from $31,525,000. Total revenue increased 8.9% to $329,804,000 compared with $302,947,000 the year before. The number of UK members was up to 72,907 from 72,543 the previous year and that figure has increased 34% since January 2022, when the number of members was 48,575. The number of UK houses increased to 14 from 13 the previous year and was up from 11 in January 2022. Globally, the number increased to 46 from 44 the year before. Total members in the second quarter of 2025 grew 2.2% to 270,297 from 264,540 the previous year. Soho House members grew 4.7% to 213,621 from 204,028 the year before. Membership revenue grew 15.9% to $118,626,000 compared with $102,347,000 the previous year.
Premium Club subscribers to receive next Who’s Who of UK Hospitality on Friday featuring 1,035 companies: The next Who’s Who of UK Hospitality will be released to Premium Club subscribers on Friday (22 August), at midday. Another 87 companies have been added to the database, which now features 1,035 companies. This month’s edition will also include 108 updated entries. The companies, listed in alphabetical order, will 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. Premium Club subscribers also receive access to five other databases: the Turnover & Profits Blue Book, Multi-Site Database, the New Openings Database, the UK Food and Beverage Franchisor Database and the UK Food and Beverage Franchisee Database. All Premium Club subscribers will be offered a 20% discount on tickets to Propel paid-for events and discounts on specialist sector reports. Operators that are Premium Club subscribers are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club subscribers receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club subscribers will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club subscribers also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.
Brakspear sees 7% increase in full-year turnover: Pub operator Brakspear has reported a 7% increase in turnover for the year ended 29 December 2024 to £41.3m, accompanied by a 2% decline in adjusted Ebitda at £10.7m. The company, which operates around 110 leased and tenanted pubs, and a further 12 in its managed division Honeycomb Houses, reported underlying pre-tax profit of £7.5m – adjusted for an impairment charge totalling £700,000, which compares with £7.4m the previous year. Turnover was up from £38.6m in 2023 to £41.3m, benefitting from growth across all areas of the business including the full year effect of The White Bear, Warlingham, part of its Honeycomb Houses managed division. The company said that the conversion of sales growth to profit growth proved more challenging with operating costs increasing significantly because of government policy, inflationary pressures and world events. Tom Davies, chief executive, said: “It is very encouraging that we continue to grow our business from a sales perspective, and that is because we have a stable and talented group of pub operators running our leased and tenanted businesses, and skilled, motivated teams across our Honeycomb Houses. The cost of doing business increased significantly during 2024 and this will increase following the government’s dreadful Autumn 2024 Budget.” The business invested just under £9m across its pub estate during the year, an uplift of £3.5m over the previous year. This investment included the refurbishment of The Egypt Mill in Nailsworth, and the acquisition of three new pubs added to its leased and tenanted estate: The Swan Inn in Chiddingfold, The Rose & Crown in Upper Farringdon and The George in Maulden. During the year, the business sold The Horns at Crazies Hill, near Henley. Post year end, the business acquired The Redesdale Arms, Moreton-in-Marsh with 35 bedrooms and The Kings Head, Cirencester with 64 bedrooms. These two purchases individually represent the largest acquisitions made by the group for a long time. Davies said: “These two acquisitions reflect the confidence we have in our business and our people at a time when the hospitality sector is going through a challenging time. I am excited by both of these high-class assets, and we will continue to purchase great quality sites as they become available.”
Eight pubs a week call time for good: Eight pubs a week closed their doors for the last time in the first half of the year because of rising tax and labour costs, according to industry experts. Industry bosses said that it was heartbreaking and highlighted the need for supportive tax measures from the Treasury in the autumn budget. The Times reports that government statistics show that 209 pubs were demolished or converted to other uses over the six months to June. The data, which was analysed by Ryan, a commercial property company, show that the overall number of pubs in England and Wales, including those vacant and to let, fell to 38,780. It means that 2,283 pubs have closed since the start of 2020. Valuation Office Agency data shows many of these have been demolished or converted into homes, offices or other uses such as day nurseries. Southeast England was hit hardest in the first half of this year, losing 31 pubs in six months, according to the data. Emma McClarkin, chief executive of the British Beer and Pub Association, said the government needed to act quickly to save pubs across the country. She said: “It’s absolutely heartbreaking and there is a direct link between pubs closing for good and the huge jump in costs they have just endured. Pubs and brewers are important employers, drivers of economic growth, but are also really valuable to local communities across the country and have real social value. This is a really sad pattern and unfortunately a lot of these pubs never come back. The government needs to act at the budget, with major reforms to business rates and beer duty.”
Safestay signs first franchise agreement: Hostel operator Safestay has signed its first franchise agreement. The company has entered into a franchise agreement with hostel owner and operator, Sycomore Entwicklungen GmbH to operate under Safestay’s brand name and systems, with effect from 1 September 2025, with an initial term of five years and an option to extend for a further five years. The agreement covers two hostels in the sought-after alpine resort of Kitzbühel, Austria, a year-round destination with world-class ski facilities and summer attractions, making it “an ideal location for Safestay to broaden its reach beyond its core market of city centres in major European capitals”. The agreement will see the two properties – currently operated as the Roomie Alps Design Hostel Kitzbühel and the Guesthouse Johanna hotel – rebranded and operated as Safestay Kitzbühel Centre and Safestay Kitzbühel Alpine, respectively. The combined properties offer 70 beds in Kitzbühel and are a five-minute walk from the main ski lifts with easy access to local restaurants, bars and transport links. Larry Lipman, chairman of Safestay, said: “Our first franchise agreement is an exciting opportunity for Safestay as we continue to execute against our ambitions to double the size of our portfolio over the medium term. Supplementing our core freehold and leasehold expansion strategy with capital-light, flexible growth opportunities, such as franchising, offers exciting new routes to market that are financially attractive and leverage our strengths as an established, international brand in the fast-growing but highly fragmented global hostel market. Whilst we continue to see significant white space for Safestay in a great number of European city centres, we are excited to take Safestay to a much sought-after alpine resort and introduce the brand to different travellers and new customers. These two sites have great potential and will benefit from our leading brand and well-invested infrastructure. We look forward to demonstrating the attractiveness of the franchise model and exploring further similar opportunities for growth.”
Tax-free shopping for tourists “could pull in an extra £3.7bn”: Shops, pubs and restaurants are stepping up pressure on the government to review the so-called tourist tax in the autumn budget, as the Treasury refuses to shift its position on the policy. Despite lobbying from hundreds of businesses, the government said it had no plans to reinstate or review the tax-free shopping scheme in Britain. Rachel Reeves has been criticised for declining to commit the government even to a review of tax-free shopping, which was scrapped in 2021 during the Brexit transition. Derrick Hardman, chairman of the Association of International Retail (AIR), told The Times: “It is mystifying why the Treasury isn’t keen to look at this when everyone else believes there is a significant opportunity for the UK. We’re not asking for an immediate change in policy this autumn, simply a commitment to a proper review. There is now substantial new data available.” According to a paper from AIR, reinstating tax-free shopping for overseas visitors could deliver an extra £3.7 billion to the economy each year and create more than 73,000 jobs. The submission, sent to the Department for Culture, Media and Sport, said Brexit gave Britain a unique chance to offer tax-free shopping to overseas visitors, unlocking a market of 450 million consumers. Unlike EU countries, which still offer VAT rebates to tourists, the UK no longer does. Helen Brocklebank, chief executive of the luxury trade body Walpole, said: “Before the government scrapped tax-free shopping, every single pound high-value visitors spent on their accommodation resulted in £8 spent in the local economy. Incentivising high-spending international visitors, particularly from the US where tariffs now make buying the best of British so expensive, is such a no-brainer, it’s hard to believe it’s not on the government’s agenda.” Kate Nicholls, chair of UKHospitality, said: “We need to have a VAT regime that incentivises tourism and makes us competitive on the world stage. Currently, we have one of the highest rates of VAT on hospitality in Europe and we’re continuing to urge the government to reduce this to incentivise visits, boost businesses and restore our competitiveness.”
Hotels with tech support cash in on “work from anywhere” boom: Mahogany desks in hotel rooms used to be an afterthought and the chair more often used for worn clothes than for business. However, The Times reports that nowadays the same desks are just as likely to have a full office set-up with a keyboard, mouse and screens, as a growing number of employers allow their staff to work from anywhere. Hotels have reported a trend emerging of guests asking for second screens, printers and even technological support. Properties are also investing in co-working spaces and even ditching restaurants in favour of coffee shops with tables and office chairs. The Four Seasons group conducted internal research, speaking to property managers, and found that the number of work-related requests had soared in the past couple of years. Martin Dell, the general manager at the Four Seasons Resort Mauritius at Anahita, said: “We’ve seen a big shift in the way people travel. By enhancing their in-room setup, guests are getting the best of both worlds. We’ve had requests for second screens, printers, coffee break service and tech support. Being a few hours ahead of the UK means people can get a head start on the day and leave plenty of time for a swim in the pool before sunset cocktails.” Research by the recruitment platform Totaljobs found that the number of people working from anywhere had increased by 56% over the past two years from 8.5% in 2023 to 13.25% this year. It means more than seven million people are expected to work from abroad this year. Four Seasons said properties in Marrakesh, Dubai, London and Saudi Arabia had all reported guests requesting in-room office set-ups. Shadi Suleman, the general manager at the Four Seasons in Riyadh, said: “Our guests are increasingly combining work with leisure, often extending their stays to do so. The request for in-room PC screens highlights their need for better workspace solutions while travelling.”
Michelin restaurant launches UK’s only bottled water menu: A Michelin Guide-listed restaurant has launched Britain’s first bottled water menu. The Telegraph reports that Joseph Rawlins has introduced the menu with bottles costing as much as £20 at his French fine dining restaurant, La Popote, in Marton, near Macclesfield, Cheshire. The co-owner and head chef, from Wilmslow, worked alongside Doran Binder, one of only five British water sommeliers, to put the menu together. Binder from Wildboarclough in Macclesfield, has spent the past seven months selecting the seven bottles to include. The bottles come from across Europe, including France, Spain, Portugal, Italy, Iceland and the UK, with prices starting at £5 for Binder’s own Crag spring water and reaching £19 for The Palace of Vidago, a Portuguese sparkling water. Rawlins, whose wine prices range from £28 to £400, says fewer diners want to drink alcohol so he decided to “offer something different” to “keep up with the market”. He said: “The restaurant scene has changed a lot over the years. We have been getting fewer big tables, more groups of twos and fours. That means at least one person there will mostly likely be driving and not be drinking as such. Everything has been positive, it is a bit of fun, and we are looking forward to seeing where it goes.”
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