Soho House Embraces Wellness Trend To Drive Profit Recovery

The chief executive of Soho House, Andrew Carnie, has highlighted a surge in demand for wellness treatments such as intravenous drips and hyperbaric chambers, which is helping steer the private members’ club business into a period of improved profitability. Soho House, which is headquartered in London and listed on the New York Stock Exchange, has reported three consecutive quarters in profit for the first time since its inception. This marks a notable turnaround for the company, which has faced a challenging period since going public in July 2021.

Speaking after releasing the recent financial results, Carnie described wellness as the “new new” for Soho House. The company has recently launched Soho Health Club, which offers advanced wellness facilities including IV drips, hyperbaric chambers, saunas, and red light therapies. These offerings are proving popular among the club’s members, particularly those seeking to counteract the aftereffects of heavier nights. Carnie noted that the current trend is focused less on overindulgence and more on practices that improve one’s sense of wellbeing, blending treatments such as IV drips with the restorative benefits of hyperbaric oxygen therapy and red light sessions.

The global market for IV hydration therapy is expanding rapidly, with projections valuing the sector at over $4 billion by 2030. Interest in immune system health following the Covid pandemic is cited as a key driver of this growth. Red light therapy is used for skin rejuvenation, while hyperbaric chambers supply the body with increased levels of oxygen through elevated air pressure, aiding overall wellness.

Soho House’s recent trajectory contrasts sharply with the difficulties that followed its stock market float. The company’s parent shares dipped more than 70 per cent by the end of 2022. However, since Carnie’s appointment as chief executive in November of that year, the company has experienced a resurgence. Shares have rebounded, doubling in value to $7.29, although they remain well below the $14 initial public offering price.

Carnie attributed the improvement to more effective operational management, including restrained growth and enhanced cost discipline. Soho House now operates 46 locations globally, compared to 44 a year prior. Membership numbers have grown to 270,297, a 2.2 per cent increase over twelve months. Carnie said the focus on revitalising existing locations, rather than relentless expansion, has driven operational efficiency and profit gains without exacerbating overcrowding among members.

Questions remain regarding the company’s future as a listed entity. In December, Soho House’s controlling shareholder, American retail investor Ron Burkle, made a $9-a-share offer with the aim of taking the company private. Carnie declined to comment on the potential buyout, stating that management remains focused on executing its operational plan and delivering improving results.