By Will Feuer
Soho House, the renowned membership-based hotel and club operator, has announced its financial results for the second quarter. Despite the challenges posed by the pandemic, the company managed to reduce its loss significantly while experiencing impressive growth in its membership base, resulting in increased sales.
Reduced Loss in the Second Quarter
Soho House reported a loss of $2.6 million, or 1 cent per share, for the second quarter. This marks a significant improvement from the loss of $82.0 million, or 41 cents per share, reported during the same period last year. Notably, this result surpassed analysts’ expectations, who predicted a loss of 12 cents per share.
Strong Revenue Growth
Total revenue for the quarter amounted to $288.9 million, reflecting a remarkable increase of 18.5%. This figure exceeded analysts’ projections of $287.1 million, demonstrating Soho House’s ability to generate substantial sales despite the ongoing challenges in the industry.
Impressive Membership Growth
Soho House’s membership base showed remarkable growth, with a year-over-year increase of 28.3%, reaching a total of 248,071 members as of July 2, the end of the quarter. The company also revealed that its member retention rates are nearing pre-pandemic levels. Moreover, Soho House currently has a member waitlist of approximately 95,000, the highest it has ever been.
In terms of revenue sources, membership revenue saw a substantial increase of 35.4% to $89.2 million during the quarter. Meanwhile, in-house revenue grew by 14.4% to $125.5 million.
Positive Market Response
Following the announcement of these strong financial results, Soho House’s shares rose by more than 8% to $6.63 in premarket trading, reflecting the market’s positive reception of the company’s performance.