Billionaires Dan Loeb and Ron Burkle fight over exclusive club Soho House
TLDR
- Soho House is struggling financially
- Ron Burkle is majority owner and wants to take it private
- Dan Loeb owns 10% and wants a more competitive bid/price
- Soho House is struggling financially
- Ron Burkle is majority owner and wants to take it private
- Dan Loeb owns 10% and wants a more competitive bid/price
Join a non-exclusive, “exclusive” club where a celeb is brought in periodically so you can brag to your friends. Isnt it better to just go to a great restaurant, pay the bill and go to another one next time?
"I refuse to join any club that would have me as a member" - Groucho Marx
We used to have country clubs (and still do). Decent places. Some too exclusive, some not. They got the job done.
But I never saw one that was a chain worth billions of dollars. Not everything needs to be a business, expand and have an exit.
But I never saw one that was a chain worth billions of dollars. Not everything needs to be a business, expand and have an exit.
Is Soho house worth it?
Nah. I was a member (took it for work meetings) and I hated it. Liked it initially but just found it repulsive after a while. The only nice memory I have of that is the food. But in ny - Id rather just pay and eat at a great restaurant. Nothing special about being a member to eat good food.
And it was too busy.
And the networking - I did not like the people there. At all.
And it was too busy.
And the networking - I did not like the people there. At all.
Usually, there is not much "networking" to be done if a place gets known for networking.
A friend spend a lot of time and energy getting the membership. Quit after 1 year - he didnt find it worth it once the novelty wore off
1. Its too crowded. You wont find a room when you need it. So youll end up doing meetings in public areas. It will like sitting in a hotel lobby
2. Food is as good or as bad as any other place in the city
3. There is no exclusivity
2. Food is as good or as bad as any other place in the city
3. There is no exclusivity
All of these New York clubs are so 1980's vibes. Their public places and pools are super crowded. Too small. Perhaps because I live in Miami, where gorgeous pools and decks are on nearly every corner, and entertainment venues are a dime a dozen, even for the very wealthy, these clubs appear to offer so very little, except for the veneer and patina of fake exclusivity. And all the photos display elbow-to-elbow crowding, which in itself is a massive turnoff. I've never even heard of the Miami club, it's that exclusively irrelevant and redundant.
Soho house reminds me of those cruises built on "largest ever ship". Disgusting.
Its an awful business model. Such places are great as long as they stay small. Or for any place built around intangibles like community and experience. SoHo house was not about the food, the pool or the meeting room. They sell creative community and exclusivity. How do you scale that?
With the same hard assets - there is a business model that scales. Its called a hotel. They dont sell you on intangibles. They spend money building hard assets (rooms, pool, food) and are clear that they rent those out. SoHo house needs to grow up and understand its in the hotel business, not in the country club business
With the same hard assets - there is a business model that scales. Its called a hotel. They dont sell you on intangibles. They spend money building hard assets (rooms, pool, food) and are clear that they rent those out. SoHo house needs to grow up and understand its in the hotel business, not in the country club business