Soho House Narrows Q3 Loss, Driven by Membership Growth
Soho House, the membership-based hotel and club operator, has reported a smaller loss in the third quarter compared to the same period last year. The company's revenue also increased, thanks to the addition of more members to its luxury clubs.
Declining Losses and Increased Revenue
In Q3, Soho House reported a loss of $42.4 million, or 22 cents a share, which is an improvement from the loss of $91.7 million, or 46 cents a share, in the previous year's third quarter. Although analysts expected a loss of nine cents a share, the company still beat expectations.
Furthermore, Soho House's revenue witnessed a 13% growth, reaching $301 million. Though slightly lower than the expected $306.2 million, this increase is certainly commendable.
Growing Membership Base
Interestingly, Soho House experienced a significant rise in its membership numbers. The total membership has grown by approximately 21% compared to the previous year, currently standing at 255,252 members. This growth can be attributed to the impressive 21% increase in Soho House-branded club members. The company also shared that membership retention rates have remained stable at prepandemic levels, and new and existing clubs continue to attract new members.
Membership and In-House Revenues
Membership revenue, which includes annual membership fees and one-time initiation charges, saw an impressive rise of 31%, totaling $93.3 million. Additionally, in-house revenue increased by 6% to reach $115.3 million.
These positive figures demonstrate the strength and resilience of Soho House as it works towards recovering from the challenges of the pandemic.
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