The Cities Without Houses Racket: High Margin Revenue or Empty Promise?
Soho House & Co.'s Cities Without Houses (CWH) tier targets creatives in over 80 locations without a physical club, offering access to global Houses during travel and local events[1][2]. However, amid reports of overcrowding and membership freezes in core cities like London, New York, and Los Angeles, questions arise about whether this membership delivers on its promises or serves primarily as a low-cost revenue stream for the company[3][4].
The Lede: Promised Access Meets Reality
Launched to connect members in underserved markets, CWH provides the same benefits as standard membership when traveling, including entry to Houses, guest privileges, bedroom discounts, and spa access, without a joining fee[1][5]. As highlighted in company promotions, it's positioned as a 'best-kept secret' with events like art shows, dinners, and collaborations fostering community[2]. Yet, feedback from online forums indicates frustration, with some describing limited practical access due to high demand in popular spots[6][7].
For instance, this Instagram post from Soho House emphasizes the tier's appeal:
Context: Overcrowding and Membership Freezes
Soho House & Co. has faced criticism for overcrowding, leading to a 2023 freeze on new memberships in London, New York, and Los Angeles, extended into 2024 and beyond[3][8]. Reports indicate this was in response to complaints about diluted exclusivity and service quality[9]. While CWH members are not local to these cities, their travel access could be impacted by capacity constraints, such as long waitlists for reservations or events[10]. Financial disclosures show membership revenue growing to $122.7 million in Q3 2025, up significantly, with total revenues at $370.8 million[11]. Analysts note that CWH, with its low operational costs - no dedicated buildings or staff - contributes to high margins, as events are often hosted in partnered venues[12].
Reddit discussions reveal mixed experiences: some praise the networking and travel perks, while others question the value amid freezes, with one user noting delayed acceptances and potential overcrowding issues[13][14]. Broader critiques, including a 2024 report on profitability challenges, highlight how rapid expansion has strained resources[15].
Analysis: The Capacity Trap and Profit Motive
The core issue lies in the 'capacity trap': CWH sells 'global access,' but freezes and overcrowding in flagship locations limit usability[4][16]. With a waitlist at an all-time high of 99,000 in 2024, the company has culled hundreds of members in 2025 to address complaints, potentially affecting guest policies for traveling CWH users[17][18]. Financially, this tier is a 'cash cow' - minimal overhead compared to physical Houses, where in-house services drive 40% of revenue[19]. As Soho House & Co. went private in a $2.7 billion deal in 2025, escaping public scrutiny, the focus on membership growth (34.73% of revenue) underscores CWH's role in bolstering the bottom line without proportional investment[20][21].
Ethically, if access is curtailed, CWH risks being seen as an 'empty promise,' akin to a donation subsidizing core operations, especially with undisclosed retention rates[22].
The Unofficial Angle: Weighing the Value for Consumers
For prospective members, CWH offers affordable entry (often half-price for under-27s) into a global network, ideal for frequent travelers[5][23]. However, those expecting seamless access to bustling hubs like NYC may find it frustrating amid ongoing overcrowding[24]. Ultimately, its worth hinges on local events and occasional trips - research suggests verifying community activity in your city before committing, as the tier's high margins benefit the company more than guaranteeing experiences[25].
Disclaimer: This article is an independent publication. We are not affiliated with, endorsed by, or operated by Soho House & Co. Information is based on public sources and fair use principles for commentary and criticism. No endorsement is implied.
