Soho House announced renovations to its West Hollywood location fifteen years after entering Los Angeles, timing the property refresh to coincide with the opening of Soho Farmhouse Ibiza, the brand's first wellness-focused countryside retreat outside the United Kingdom. The dual announcements signal a bifurcated strategy: maintain legacy urban real estate while expanding into higher-margin rural hospitality.
The West Hollywood club, which opened in 2010 at 9200 Sunset Boulevard, receives undisclosed interior updates to member spaces and food-and-beverage programming. The London-based operator disclosed no capital expenditure figures, no timeline for completion, and no incremental membership capacity increases. Soho Farmhouse Ibiza, meanwhile, opened this month on a rural property in the island's interior, replicating the Oxfordshire Farmhouse model launched in 2015. The Ibiza property includes 60 cabins, spa facilities, farm-to-table dining, and outdoor programming. Room rates start at €600 per night for members, roughly double the average daily rate of urban Soho House accommodations.
The announcements arrive as Soho House & Co. navigates post-SPAC market pressure and member-growth stagnation. The company went public via SPAC merger in July 2021 at a $2.8 billion valuation, then saw shares fall 78% from peak to trough by late 2023. Management disclosed in Q3 2024 earnings that global membership stood at approximately 231,000, up just 4% year-over-year, the slowest growth rate since the pandemic. Revenue per member climbed 11% in the same period, driven by higher food-and-beverage spend and increased room-night bookings at Farmhouse properties. The company operates 43 locations across North America, Europe, and Asia, with 12 additional sites in development.
The Los Angeles refresh matters because West Hollywood remains one of Soho House's highest-occupancy urban clubs, sustaining waitlists despite the brand's broader membership slowdown. Allocators watching the private-club category note that legacy urban properties require periodic capital reinvestment to justify membership fees now approaching $4,200 annually for under-27 members and $6,000+ for those above 27 in top-tier cities. Soho House has not disclosed whether the West Hollywood updates include expanded event spaces, which generate incremental revenue from non-member bookings. The Ibiza Farmhouse opening, by contrast, targets a different margin structure: multi-night stays at €600-€1,200 per night versus single-visit food-and-beverage transactions in urban clubs. The Oxfordshire Farmhouse, the only comparable asset, reportedly operates at 85%+ occupancy year-round, according to industry sources.
Operators should track whether Soho House announces additional Farmhouse locations in Southern Europe or North America within the next 12-18 months, signaling a material shift toward rural hospitality. Watch for Q4 2024 and Q1 2025 earnings disclosures on food-and-beverage revenue per member and room-night contribution margins, which will clarify whether the Farmhouse model scales profitably. Heritage hospitality developers should note that Soho House's Ibiza move validates demand for members-only countryside retreats at luxury-hotel pricing, a category previously dominated by Aman and Six Senses.
The company has not disclosed whether it owns or leases the Ibiza property, a detail that shapes return-on-capital expectations and exit optionality. The West Hollywood building operates under a long-term lease through at least 2030.
The takeaway
Soho House refreshes LA flagship while opening first non-UK countryside retreat, testing whether rural hospitality sustains growth as urban membership flattens.
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