Zachary Riddle's questions to Soho House & Co (SHCO) leadership • Q4 2023
Question
Asked if the slower pace of new house openings would lead to more refurbishments, questioned the size of the opportunity in wellness offerings, and inquired how having fewer new, lower-margin houses in the mix would impact house-level contribution margins.
Answer
Executives clarified that the current level of refurbishments is standard practice and will continue. Wellness is a major investment priority based on member demand, with new gyms and experiences being rolled out. While not guiding to specific house-level margins, they expect overall margins to increase, driven by strong recurring membership revenue which provides operating leverage against inflationary pressures.