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Soho House doubles Los Angeles footprint with public café and coworking addition, testing mixed-revenue model as standalone membership clubs exit major U.S. cities.
14,000 square feet
across member workspaces
£223.4 million
in revenue for fiscal 2023
£47.8 million
as the company services debt from its
27-house
global portfolio
Soho House opened a second building at its West Hollywood location this month, fifteen years after launching its first U.S. outpost in the former Schindler House at 9200 Sunset Boulevard. The expansion adds 14,000 square feet across member workspaces, a ground-floor café open to the public, and additional bedroom inventory to the existing 16-room footprint.
The move arrives as membership-club economics tighten industry-wide. Soho House & Co. reported £223.4 million in revenue for fiscal 2023, up 19% year-over-year, but operating losses widened to £47.8 million as the company services debt from its 27-house global portfolio. The Los Angeles expansion—financed before the company's SPAC merger unwound in late 2021—represents a pre-committed capital allocation rather than new growth appetite. The property now spans two buildings connected by courtyards, with the original structure retaining its screening room and main dining areas while the addition focuses on daytime utility: coworking tables, phone booths, and grab-and-go food service.
The Los Angeles house operates as the company's highest-revenue North American location, drawing from entertainment, technology, and finance membership bases willing to pay $2,800 annual dues for the flagship tier. The expansion's public café component—serving non-members during morning and afternoon hours—tests a revenue model the company piloted in London and New York: extracting value from street-level real estate without diluting member exclusivity on upper floors. Early data from the London and Brooklyn cafés shows 22-28% profit margins on food and beverage, higher than member-only dining operations that require full hospitality staffing across longer service windows.
The timing matters for operator benchmarking. NeueHouse closed its Los Angeles location in 2023 after seven years, citing lease economics that no longer supported single-building operations in the city's fractured geography. The Wing shuttered entirely in 2022. Casa Cipriani and Zero Bond continue New York-focused expansion, but neither has announced West Coast commitments despite reported interest. Soho House's decision to deepen rather than diversify its Los Angeles presence suggests the company sees member retention and per-location revenue density as more defensible than new-market land grabs.
Allocators should track Q2 2025 membership renewal rates at the Los Angeles house specifically, which will indicate whether the expansion drives retention or simply redistributes existing usage across more square footage. The company has not disclosed whether the additional bedrooms command the $350-$500 nightly rates typical of its urban properties or offer discounted long-stay options for members working remotely. Watch for Soho House's fiscal 2024 results in March, particularly same-store revenue growth in North America versus international markets, where the company added houses in São Paulo, Bangkok, and Tel Aviv over the past 18 months.
The café's performance in its first six months will set the template for Soho House's next phase: whether it becomes a hospitality company with membership components or remains a members club that happens to operate restaurants and hotels.
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