Soho House received a takeover offer that values the operator of swanky clubs at more than $1.7 billion, a spark of interest after its properties have been losing cachet with the affluent crowd they target.Soho House, founded in London in 1995, was one of the earliest of its generation of exclusive clubs where young, wealthy strivers could drink vodka and cranberry cocktails poolside within earshot of celebrities like Taylor Swift and Leonardo DiCaprio.It expanded from London to New York in 2003. Its notoriety increased after a "Sex and the City" episode featured Samantha struggling to get off the waiting list to get into the club.At the end of last year, it had more than 42 clubs, nine workspaces and a beach resort in Mykonos, Greece, with the rapid expansion arguably diluting one of its most valuable assets: its vibe. Rival clubs have been drawing members who want more exclusivity.Members complained of overcrowding, and by the end of last year, Soho House had stopped accepting applications in some cities after reaching 259,000 members.Membership has still grown since then, to 267,000, according to its latest quarterly filing. An all-in annual membership can cost as much as $5,200 for people over 27.The $9-a-share takeover offer-which represents a premium of over 80% on Wednesday's closing price-sent its U.S.-listed shares surging Thursday. The company's stock jumped about 47%, giving it a market value of around $1.4 billion. The shares had stumbled around 31% so far this year through Wednesday, to below $5.Soho House said the new offer was from a consortium, but didn't specify the parties involved. The company earlier this year spent months evaluating potential strategic alternatives for the business, including a take-private deal, but in May closed the review.The company, backed by billionaire Ron Burkle, went public in 2021 and has been unprofitable each year since.The offer is supported by some of the company's major shareholders, Soho House said, including Burkle-its executive chairman-as well as his investment firm Yucaipa Cos. and its affiliates.Soho House said its board had formed an independent special committee to evaluate the offer.-Adriano Marchese contributed to this article.

Private-Club Chain Soho House Gets $1.7 Billion Takeover Offer

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